CNBC’s Jim Cramer said that three corporate deals announced on Monday helped push stocks up.
“Mergers matter. When corporations start buying one another at a giant premium to what the market’s willing to pay, it tells you that stocks entirely, the entire market, may be too low-cost,” he said.
Listed below are the deals he’s referring to:
“There are a ton of stocks that the market has no appreciation for, and we’re checking out that other corporations, or private equity buyers, value them rather a lot more highly. That is never a foul thing,” Cramer said.
Stocks rose on Monday ahead of the monthly consumer price index report set to release Tuesday and the Federal Reserve’s December meeting.
Cramer added that while he doesn’t consider the deals are the only reason the market rallied, they gave investors the arrogance to place money to work in what’s been a troublesome market.
“Three deals in a regulatory environment that is this hostile to takeovers? At that time, you want to get more positive on all the asset class, since the acquirers are telling you these stocks have gotten too low-cost to be ignored,” he said.
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