November 20th - RS IPG THS

Cramer started out looking for the next takeover target after a big day of M&A. He recommended Reliance Steel & Aluminum Co. (RS)

Closing Price: $35.55
After Hours Price: $37.17
Percent Increase: 4.6%
Sector: Industrial Goods
Days to Cover: 1.6
Short %: 2.34 %
% Held by Insiders: 13.16 %
% Held by Institutions: 74.40 %
50 Day Moving Average: $33.03
200 Day Moving Average: $38.26

The stock was up over 5% today on sector M&A news which makes me concerned about the price potential action tomorrow. I would personally stay away from this one to avoid the risk of more M&A action tomorrow or even the speculation of it that could keep this stock up high.

Next Cramer recommended Interpublic Group of Companies Inc. (IPG) as a turnaround story after some new big contracts for the advertising company.

Closing Price: $11.71
After Hours High Price: $12.40
Percent Increase: 5.9%
Sector: Services
Days to Cover: 12.4
Short %: 10.68 %
% Held by Insiders: 10.44 %
% Held by Institutions: N/A
50 Day Moving Average: $10.41
200 Day Moving Average: $9.54

Decent price pop after hours. The stock was down today, and the after hours push has created a new 52-week high. The moving averages don't appear to be in play, but since the price is above both the 50 and 200 MA's it is a positive sign for the stock. This of course does not mean that the stock won't come down from an early spike. I have also been seeing a lot of articles about the market getting very toppy and how we are due for a correction. A correction will certainly help slow, but not necessarily stop these Cramer recommendations. I also think with all the M&A activity today and the lack of a big general market rally certainly points to a possible larger correction (aka bear market).

Finally Cramer recommended Treehouse Foods Inc. (THS) because of the companies ability to use leveraged buyouts to increase its earnings.

Closing Price: $30.64
After Hours Price: $31.71
Percent Increase: 3.5%
Sector: Consumer Goods
Days to Cover: 15.3
Short %: 7.39 %
% Held by Insiders: 3.04 %
% Held by Institutions: 94.90 %

The daily volume average on this stock is very low, just above 100,000. This could certainly lead to the biggest spike in price due to a high demand and possible low supply (especially if the institutions hold their shares). The stock did break $32 after hours, so I would look for anything around that level to get a good short entry point. And since I haven't mentioned it in a while, this is a very short term short of possibly minutes to catch the quick ride down from an opening spike. It certainly isn't a guarantee, but after a stock opens up several percent it has only been in rare occasions where the stock has a lot more to go up that day so even on a bad trade the upside in the stock price is pretty limited.