CNBC’s Jim Cramer stated that three company offers introduced on Monday helped push shares 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 stated.
Here are the offers he’s 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 stated.
Stocks rose on Monday forward of the month-to-month client worth index report set to launch Tuesday and the Federal Reserve’s December assembly.
Cramer added that whereas he would not consider the offers are the only real cause the market rallied, they gave traders the boldness to place money to work in what’s been a tricky 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 stated.