IPG is going to be on Cramer tonight..Cramer's Mad Money - You're In Good Hands With A Stock Nobody Talks About (6/10/14)
IPG is going to be on Cramer tonight
Cramer's Mad Money - You're In Good Hands With A Stock Nobody Talks About (6/10/14)
Omnicom Group (OMC), Interpublic (IPG). Other stocks mentioned: Yahoo (YHOO), Yelp (YELP)
There is a rising tide of consolidation in a whole range of industries. Cramer thinks there is a reason to pay a bit more for stocks that might be taken over. The failed merger between Omnicom Group (OMC) and Publicis would have created an advertising monolith. This is good news for Interpublic (IPG), which now is "takeover target number one," given increasing competition in the advertising space. IPG is a cash cow with a market cap that is "easily digestible." It isn't merely a takeover target, but it also has solid fundamentals. The company has experienced a major turnaround, has sold off non-performing assets and is an "ATM machine" of an advertising company. The company saw 6.6% organic revenue growth. It has been winning major accounts in healthcare and the auto industry and has implemented cost savings initiatives. It boosted its dividend by 27%. IPG sells for a multiple of 16 and could fetch a 20% premium in a takeover deal. Investors will either see a takeover or their stock will move higher.