Piggybacking on the picks of renowned investors like Warren Buffett or Steve Cohen works, Cramer says.
When these guys close in for the kill, the rest of the pack crowds around for a nibble. The spike in demand inevitably sends the stock price up.
The fact is Wall Street’s a fashion show, and the best traders in the market choose what’s hot or not. So the strategy is to figure out which stock will walk the runway next.
And it can be done, Cramer says.
That’s why tonight he’s highlighting a stock that enjoys the favor of a mega-investor: Vector Group, which is 20% owned by Carl Icahn.
Vector, which is mainly a cigarette producer but also dabbles in real estate, has great fundamentals and fantastic yield of 7.9%. In Cramer’s experience, that’s a rarity on Wall Street.
The stock can be bought for both the income – better than Treasurys – and the value. Cramer thinks the two analysts that cover Vector might have the earnings estimates too low, making it cheap at present levels.
And with Carl Icahn as an activist shareholder, Cramer says the stock is even more attractive.
Bottom Line: As far as Cramer is concerned, Vector just needs to keep pounding out those cigarettes and delivering its dividend to go much, much higher.
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