CNBC’s Jim Cramer said that the company’s three deals announced on Monday helped push the stock price higher.
“Mergers are important. When companies start buying each other out at more than the market is willing to pay, it tells you that the whole stock, the whole market, can be too cheap. “, he said.
Here are the deals he is referring to:
“There are a lot of stocks that the market doesn’t appreciate, and we’ve found that other companies, or private equity buyers, appreciate them a lot more. That’s never a bad thing. “, Cramer said.
Stocks rose on Monday ahead of the monthly consumer price index report due on Tuesday and the December meeting of the Federal Reserve.
Cramer added that while he doesn’t believe deals are the sole reason the market has rallied, they have given investors the confidence to put cash to work in a tough market. .
“Three deals in a regulatory environment that make takeovers difficult? At that point, you need to be more aggressive on the entire asset class, because the buyers are telling you those stocks This has become too cheap to be ignored,” he said.
