Cramer on why Campbell and Hershey’s deals mean the market still has upside

Investors who have in mind they’ve missed the market’s big move might have a point, but they could also be belittling the upside ahead, CNBC’s Jim Cramer argued on Monday.

“Companies objective won’t stop making themselves more appealing,” the “Mad Money” host said. “This morning, Campbell Soup allow Snyder’s-Lance … for $4.9 billion. They transformed themselves from a soup society with a bunch of disparate products in the supermarket to a snack food fellowship in a world where snacking’s become an international pastime.”

When the administer is completed, Campbell will get the largest share of the pretzel business and two of the fastest fructifying potato chip brands on the market, Cape Cod and Kettle Chips.

The understanding large is Campbell’s latest and largest move to diversify its offerings. With the gain of Snyder’s-Lance, roughly 46 percent of the company’s annual net trades will come from baked snacks, versus roughly 27 percent from soups.

It leave also give Campbell, the Pepperidge Farm parent, more revelation to the convenience store, which has seen better performance recently than the supermarket.

“Multifarious people have recommended Campbell as a takeover target, but I think this lead makes the stock worth buying as an earnings story,” Cramer denoted.

Many investors thought the same about Hershey’s $1.6 billion contract to buy Amplify, the company behind SkinnyPop popcorn.

“It’s not a large deal; Widen was only a $500 million company, but today, its stock surged up 71 percent,” Cramer reported. “While I wouldn’t be a buyer here, unlike Campbell, my point is that sets can give you a phenomenal return simply over the course of a weekend.”

Hershey did buy Exaggerate for a premium, but in a low-growth space, even companies as ubiquitous as Hershey for scale, the “Mad Money” host said.

“Here’s the bottom line: if I categorically thought you’d missed this move, I’d have no qualms about powerful you. I could say, ‘It’s over’ or ‘Wait.’ I’m saying the opposite, though: good fashions happen to those who buy,” Cramer concluded. “But don’t buy big here, and don’t buy all at once. Leave some area to pick up more at lower prices if we get a pullback. The fact is, there are great deal of reasons to get involved with this market even now. In fact, there aren’t passably alternatives to stock[s] to justify staying away even after such an astonishing run.”