Don’t buy those companies, says Mr. Mad Money, buy this company.
From Jim Cramer’s This Market Has a Terrible Case of Attention Deficit Disorder:
Now this morning JP Morgan’ s Apple analyst posited a host of acquisitions that could keep that service stream flowing: Activision Blizzard (ATVI), Sonos (SONO) and Netflix (NFLX) being the most prominent.
I was a bit surprised at this. I know I, for one, pushed hard for Apple to buy Netflix at $25. They didn’t want it. I doubt they want it at $349.
Activision Blizzard has had a series of surprisingly weak quarters and I can’t think about why they would want to ally themselves either with the declining Activision programs or the video games themselves as that business seems to be slowing.
Sonos? Doesn’t move the needle. I think the idea to buy a house sound system company for a couple of billion would be poorly perceived. Maybe desperate even.
If Apple wants to buy something to fulfill Tim Cook’s vision of saving lives with the Apple watch he should do something that gets that handshake going between the medical establishment and the watch itself. A partnership with Johnson (JNJ) on A-Fib or with Mayo Clinic on congestive heart failure would be terrific and you would pay $10 a month for that but I just want all my medical records from all different hospitals to talk to each so they can be on my watch. We’ve talked about this before. Now, though given the stock is well above where it was [on Jan. 8] when Cook talked to us — up $20 to be precise — we have to hope that something’s going on besides the trade talks.
UPDATE: Cramer apparently forgot that he had a healthcare play he wanted to pump. So he added this video:
My take: I’d love to be a fly on the wall when a segment like this gets pitched. Where do these ideas come from? What kind of due diligence is done? Who has final say?
Dexcom, by the way, makes continuous glucose monitoring systems for diabetes management. The stock had a nice January and responded well to Cramer’s plug yesterday.