I have included Mad Money host Jim Cramer in a post before and it illicited a significant response both here and in LinkedIn groups, so it is interesting to hear him push Private Brand HBC manufacturer Perrigo. Love him or hate him, Cramer is polarizing and I think he is write Perrigo’s stock has “much more room to run,” he said, “especially if you can buy it before the deal closes and all the lemming analysts raise their 2011 numbers.”
Over-the-counter drugmaker Perrigo [PRGO 59.00 — UNCH (0) ] just made a “smart takeover,” Cramer said, that extends its reach into yet another aisle in your local pharmacy. He had already recommended the stock in February – it’s up 27% since – but this new deal “makes the story even more compelling.”
Perrigo was largely known as the world’s largest manufacturer of over-the-counter private-label drugs, but the company also dabbles in generic drugs and active pharmaceutical ingredients. Then on March 23, management announced they were buying PBM, a privately held maker of store-brand infant formula and baby food for $808 million. Wall Street immediately blessed the deal, taking PRGO up 12% in just one day.