Cramer: These 10 Stocks Could Unlock Value
Previously, Jim Cramer identified 10 stocks that he thought could move sharply higher if their respective management teams took steps to unlock value.
Don't just stand there, do something!" exclaimed an animated Jim Cramer at the time. As a result these stocks have come to be known as Mad Money's "don't just stand there – do something' stocks.
And, of the 10 companies identified by Cramer, if there's any managment unlocking value it's Hess.
No question. "Hess is the big winner," said Cramer. "They just announced the sale of their Russian unit to Lukoil for $2.05 billion. At $70, this stock is now sharply higher than where it was when I suggested that if Hess didn't do something to bring out value, someone else would."
The move in Hess warrants another look at the other 'don't just stand there' stocks. "This is a good time to review how they've been doing," said Cramer on Monday's show.
Deckers has benefited from the cold winter as well as a sharp decline in the price of fleece—a key material used by the footwear maker."I think that a reinvigorated Deckers has a lot of room to maneuver, and if it doesn't, I still believe it's a natural for VF Corp to take a run at the company," said Cramer.
Though it hasn't yet, "I still believe Manitowoc could break itself up," said Cramer. However, there's another catalyst that could drive shares in the near-term. According to Cramer's research, "commercial real estate construction is coming back, and that's right up Manitowoc's alley."
Mine Safety Appliance
Cramer thinks Mine Safety Appliances makes an attractive takeout target. "After a painful adjustment from an expansion into Europe, I believe that this company, which is the premier independent safety appliance and apparel firm out there, remains in the sights of Honeywell, 3M and Dupont, all of which have expressed interest in the sector, but not yet the company." (Read More: Cramer Says This Stock Ripe for Takeover)
Cramer believes this company would still benefit tremendously if it broke apart. "I can't believe that DST still hasn't separated itself into a financial services firm that helps brokerage houses with record keeping and a fast growing record keeping company for life insurance and annuity companies. It's still got plenty of real estate to spin out, too."
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Fortune Brands Home & Security
Cramer still sees takeover potential here. "I think that by year-end, Masco takes a run at Fortune Brands Home & Security," speculated Cramer, "if only to reduce exposure to the hobbled European market." Also, Cramer thinks Fortune could break itself up. "And no, I think the 23% gain we've seen so far is not nearly enough."
Johnson & Johnson
Cramer still believes Johnson & Johnson could embark on a massive restructuring to unlock value. "JNJ should split itself into a fast growing pharma business, a consumer products company, and a troubled but profitable medical device maker," he said. However, he added even if that's not imminent the stock is still worth a look if only for its 3% yield.
"If you were to tell me that Alliant Techsystems, the defense company, would be up at all considering the sequester, I would have been shocked four months ago, but the 16% gain its posted is completely remarkable. If you are a defense contractor starved for growth, you can pick this company up for a song, less than $3 billion," said Cramer.
Bed Bath & Beyond
As he's said in the past, Cramer wouldn't be surprised to see Bed, Bath & Beyond go private. "I still think that if the stock stays down here, it's only a matter of time before a private equity firm says, 'lets just buy the darned thing.' Despite recent gains, I think it remains in the crosshairs of these aggressive buyout firms."
It may be the laggard of the 'don't just stand there' stocks, but Cramer said Hain remains a stock worth watching."The short-sellers have been swarming endlessly around Hain, a company that CEO Irwin Simon built with a series of acquisitions. Is it time for Simon to spin off the dowdy non-food offerings? Will Carl Icahn get restless and increase his stake? It's been enough of a laggard that something good could happen," he said.
Disclosure: On April 1, 2013 Jim Cramer's charitable trust owned Johnson & Johnson.
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