NetApp made the right decision to withdraw its bid for Data Domain, Cramer said Thursday. Now investors can focus on the company’s core business, “which is on fire.”
NetApp , an enterprise-storage and data-management firm, had been battling with EMC for the right to buy Data Domain . Wall Street had feared that NetApp might overpay, Cramer said during Stop Trading!, hurting what were expected to be “blowout” earnings for the quarter ending in August. Now that Data Domain has accepted EMC’s $2.1 billion cash offer, NetApp’s stock is much more attractive.
Cramer also reiterated his buy call on motor maker Baldor Electric. He said it would be one of the few companies that benefits from President Obama’s cap-and-trade bill.
Lastly, Cramer disagreed with what seemed like largely negative sentiment coming out of Allen & Co.’s media and technology conference in Sun Valley, Idaho. A number of participating CEOs, such as American Express’ Kenneth Chenault, have offered rather bearish outlooks for the economy.
But Cramer pointed out that there are signs in the restaurants and retailers that the situation has “incrementally improved.” And companies operating in Internet and mobile Web space have seen a “dramatic pickup” in business, he said. The Mad Money host also pointed to the Dow’s big jump since the early March lows of 6,500.
“If things aren’t so hot,” Cramer asked, “why have we had this move?”
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