Cramer Has a Bank Buyout Pick; So Do We

Cramer on MAD MONEY tonight noted a stock that has upside is Downey Financial Corp. (DSL-NYSE), but Cramer said you have to review this one deeply before you go buy it.  Cramer thinks this one could be acquired since Wachovia (WB-NYSE) made an acquisition out in California.  He also said that at comparable levels this one could go for much higher.  He also noted that it has a huge short interest, which he went as far as saying was "Dendreon-like" in his calls.

This brings up one of our own BAIT SHOP calls, where we have identified companies that could be takeover bait.  Back when Wells Fargo (WFC-NYSE) announced plans to acquire Placer Sierra (PLSB-NASDAQ), we noted company in San Diego and elsewhere in California called First Community Bancorp (FCBP).  This is one we have as a candidate that could be acquired, and here is what we have said on this during this year as a follow-up as to why we think it could be acquired.  The same reasons that Cramer was looking for this was the reasoning we used to choose First Community Bancorp in California, although our choice had nothing to do with short interest plays.

In a call-in, Cramer also said he is rasing his price target on Goldman Sachs (GS-NYSE) from $250.00 to $320.00.

Jon C. Ogg
April 18, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.