BASF (NYSE:BF) in Germany is the next stock that Cramer wants to visit as an EU play on tonight’s MAD MONEY on CNBC, but he also thinks this company will be acquiring companies. He does not see this as the traditional takeover stock. This is over $60 Billion in market cap and he wouldn’t be shocked if it goes to $150.00 on the ADR’s. He noted it is also cheaper on P/E than Dow Chemical (NYSE:DOW) and it only gets 22% of its net from North America. BASF’s earnings are also becoming more and more consistent, and that can command a P/E ratio premium from Wall Street if they can maintain that trend.
Interestingly enough, Cramer also gave us a chemical stock that could be an acquisition target. We already say Lyondell (NYSE:LYO) fall to Basell, and Cramer thinks that Nova Chemicals (NYSE:NCX) is the other chemical stock that could easily be acquired. The analyst at BB&T has picked the last two buyouts in the sector and he thinks Nova Chemical could be the next target. This one has a $3.3 Billion market cap and is atthe top of its 52-week trading range. It is far under the $50.00+ highs of early 2005.
Jon C. Ogg
July 19, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
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