03/17/06

The lead segment for today's show was "Takeover Talk: Making Money off of Acquisitions".

O.K., so you heard L'Oreal bought Body Shop Today. So, how can you make money off of it? What other takeovers might follow?

Take it to the Limit

Limited Brands (LTD) is now a buy because Body Shop could be the next takeover target. Body Shop is a division of the Limited. Now this is a speculative bet on a takeover, Jim warns, but that is O.K. because the Limited's fundamentals are good. Thus, this is a good speculative bet on a takeover stock.

Noble Prize

Barnes and Noble (BKS) is up because it is the next Starbucks stock, but the next Starbucks with books. Still, don't buy this stock because it jumped 10% off of good numbers. So, you wait for a pullback. Now, it's down on $1.30, so you could buy in increments, but this stock will probably pull back a little more. 

How sweet it is

Hershey Co (HSY) is a takeover target and that makes it a buy. Right now it's only $4.00 above its 52 week low. If it gets acquired, its stock will jump through the roof. Even if doesn't get taken over, it's still a safe bet. Another great takeover stock play.

Aqua America

Aqua America Inc (WTR) is still a buy, but with only one thumb up. 

Mad Money Lightning Round Picks 

Bulls
ENMC
DOW
HELX
CEG
KEYW
MFC
WSO
HXL
ARG


Bears
HOC
PKD
INTC
NYX
CYBS
HOMS
CRE

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