CNBC’s Jim Cramer said that three corporate deals announced on Monday helped push stocks up.
“Mergers matter. When companies start buying each other at a big premium to what the market’s willing to pay, it tells you that stocks entirely, the whole market, may just be too cheap,” he said.
Here are the deals he is referring to:
“There are a ton of stocks that the market has no appreciation for, and we’re finding out that other companies, or private equity buyers, value them a lot more highly. That’s never a bad 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 believe the deals are the sole reason the market rallied, they gave investors the confidence to put cash to work in what’s been a tough market.
“Three deals in a regulatory environment that’s this hostile to takeovers? At that point, you need to get more positive on the entire asset class, because the acquirers are telling you these stocks have gotten too cheap to be ignored,” he said.
