Cramer’s Secondary Merger Plays

Posted: February 26, 2007 at 2:51 pm

On today’s STOP TRADING segment on CNBC, Cramer discussed the New York Stock Exchange (NYX-NYSE) as still being the most attractive stock in the exchange sector even though Intercontinental Exchange (ICE-NYSE) has rallied the most.  This isn’t Cramer’s first note on NYX, as that was his #1 Growth Pick for 2007.  On TXU (TXU) merging, Cramer thinks that McDermott (MDR) is down too much at -5% on concern that they will lose TXU business.  Foster Wheeler (FWLT-NASDAQ) is one that Cramer thinks is still great on a post-asbestos basis.  On Dow Chemical (DOW-NYSE), Cramer said the history of these deals may keep them up and he noted how Alcoa (AA-NYSE) has not fallen.  Eastman Chemical (EMN) is the one he would do right now because it is too cheap.  He also like Louisiana-Pacific (LPX) after temple-Inland (TIN) FINALLY announced its own break-up that they had hoped for when he was a broker in 1991.

Jon C. Ogg
February 26, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers. 

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