Jim Cramer's Thoughts on General Electric's Biopharma Sale and Kraft Heinz
Got the Monday Blues?
Jim Cramer's back and ready to rock and roll.
He tackled some of the biggest headlines from Monday morning and what they mean for the markets.
Anything Left in Kraft Heinz?
Kraft Heinz remains in the spotlight after Warren Buffett said he won't be selling his stake in even after the company wrote down the value of some of its most iconic brands by as much as $15.4 billion.
"The company that is the merged Kraft and Heinz companies has long been revered by Wall Street because of the legendary way that 3G, its managing entity -- with CEO Bernard Hees -- has cut costs to bring great gains to the bottom line.
The Street also loved that Warren Buffett owns almost 27% of it and that old Warren had been on the board since last spring while two of his most able lieutenants -- one of them being Greg Abel, just praised in Warren's annual letter this weekend -- currently serve as directors," Jim Cramer wrote in his morning column over on Real Money.
General Electric's Biopharma Sale Real Money Stock of the Day General Electric is selling the biopharma portion of its life sciences business to Danaher Corp.
Related: General Electric Is Coming Back From the Walking Dead - For Now GE said the sale won't include its pharmaceutical diagnostics business but expects to use the net proceeds of around $20 billion to reduce its overall debt load.
Danaher said the business till operate as as stand-alone company it is own life sciences segment, and will add around 45 cents to 50 cents in adjusted earnings in the first full year after the deal closes.
Jim Cramer said that his Action Alerts Plus portfolio owns a large position in Danaher.
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What's Next for Berkshire Hathaway?
Warren Buffett said Berkshire Hathaway wants to make an "elephant-sized acquisition" with some of its $132 billion in liquidity, but can't do so right now because "prices are sky-high for businesses possessing decent long-term prospects." Related: Some Thoughts on Warren Buffett's Letter to Berkshire Shareholders "In the years ahead, we hope to move much of our excess liquidity into businesses that Berkshire will permanently own.
The immediate prospects for that, however, are not good: Prices are sky-high for businesses possessing decent long-term prospects," Buffett wrote in his widely anticipated annual letter to Berkshire shareholders.
Cramer said that he thinks Berkshire Hathaway should turn its attention to Goldman Sachs .