There are few things in this market that are harder than reinventing a business, but Jim Cramer sees reinvention as the driver behind the activity on the averages lately.
Allergan will provide a whole host of new drugs, including Botox, which has gotten more expensive of late, even as the company keeps coming up with new ways to use the drug beyond wrinkles and migraines. Cramer suggested that Pfizer could now split itself into a slow-growth, old-drug company, and a new, fast-growth pharma company following the merger.
However, the market did not like the deal because Allergan already has so much going on its own and partially because it is fairly dilutive for Pfizer, given the length of time until the deal closes.
"I know that my charitable trust bought Allergan because we believed in [CEO Brent] Saunders' big number vision for the future. I still do, but the tie-up with Pfizer seems to make the turn more convoluted. Reinvention in progress?" the "Mad Money" host said.
Some reinventions happen on the fly. On Tuesday, both Hormel Foods and Campbell Soup report, both of which are joining General Mills in the frantic bid to be more natural and organic.
"To me Campbell Soup is a buy even if it doesn't blow away the numbers because it's work in progress that I think will ultimately be successful," Cramer said.