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Friday, May 12th 2006

'Office Suprise'

BUH  (BUHRMANN NV ADS)

"Yesterday, in the midst of the horrible action, do you know what happened?  Citigroup comes out and upgrades Office Depot - ODP (from a 'hold' to a 'buy' rating).


This stock is already up huge; I would have zero desire to buy ODP, until it comes down, at least, out of the ionisphere!

Uh, but then I read through the report.  I actually do a little homework now and then.  The report didn't convince me to recommend buying ODP - no.  Cramer be too disciplined for that activity.

It did convince me though that Bill Sims, the analyst who wrote it, must either be the bravest analyst on Wall Street, or must be positively, unequivocally insane!

And I think I'm a good judge.

I know, my favorite game on Mad Money is 'Break the Analyst' but, sometimes the analyst is so courageous, and probably right, that all I can do is praise the guy.  Uh, Bill Sims, at Citigroup, I'm giving you a round of applause!

Why?

Okay.  Because this guy did something really astonishing; something that analysts almost never do.  He came out in this report, and said that ODP will probably buy...

...Burhrmann NV (BUH)!

This is a big Wall St. firm, Citigroup, saying that one co. will probably buy another.  That is an incredibly rare occurrence!  It makes me want to buy, buy, buy!

Normally, on this show, we do not speculate on takeovers - or at least that's not usually my primary reason for recommending a stock.

But listen, you need to take them very seriously when Citigroup suggests they might happen.  Now, it turns out, lucky for us, BUH sounds great!

Remember, you're not allowed to speculate on takeovers unless the fundamentals are improving.  If BUH were a bad co. - if their margins were deteriorating - if they were flatlining - if they were disappointing - no takeover will make you money, so we stay away.

Now look, it's got a great franchise that could logically be either bought by OfficeMax (OMX), or Staples (SPLS) if ODP doesn't bite.

Plus, Steve Odland, ODP's CEO, who along with Eddie Lampert, turned around AutoZone (AZO), is a smart, innovative guy who would probably jump all over BUH.

By the way, Eddie just moved up that report date for the Sears (SHLD)(owned by Jim's charitable trust); hey, that could be positive.

Of course, it also trades overseas.  But Cramer going to be pimpin' it here at home, and recommending the ADR on this one.  Sure, it's thinly traded for my tastes and, if you buy it after the bell, here's what will happen:  you will pay up here, and it's going to open up unchanged in the Netherlands, because you think they watch Cramer's Mad Money?  Oh, contrare pal.  But Cramer be a patriotic man, and he recommends the ADR (American Depository Reciepts).

The bottom line!:  When an analyst is willing to stick his neck out, and predict a takeover, I think you should at least listen very carefully, if not jump on the bandwagon right here and buy BUH!"



 
"Interview with Steve Sanghi, CEO of MCHP"
MCHP  (MICROCHIP TECHNOLOGY INCORPORATED )

Has the guy on the show and still issues a dont buy!  Gotta love Cramer, always looking out for us.

 read the full story!                             

"Fine China"
PTR  (PETROCHINA CO ADS)

A chinese oil company that Jim says is like Black Gold.

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"Coal Hearted"
RTK  (RENTECH INC)

A small cap coal company with clean, new energy product.

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"Office Suprise"
BUH  (BUHRMANN NV ADS)

A company that could be bought by Office Depot.

read the full story!