CNBC’s Jim Cramer said three corporate deals announced on Monday helped boost the stock.
“Mergers are important. When companies start buying each other at a big premium for what the market is willing to pay, we find that the stock as a whole, the market as a whole, may be too cheap,” he said.
Here are the deals he mentions:
“It turns out that there are tons of stocks that the market is not valuing, and that other companies and private equity buyers are valuing them higher. That’s never a bad thing.
Stocks rose on Monday ahead of Tuesday’s monthly consumer price index report and the Federal Reserve’s December meeting.
Cramer added that he doesn’t believe the deal was the only reason the market rose, but that it gave investors the confidence to invest their cash in a tough market.
“Three deals in a regulatory environment hostile to takeovers? At that point we need to be more aggressive across asset classes. Acquirers say these stocks are too cheap to ignore. because they are,” he said.
