Don't Get Into These Stocks

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Cramer: Don't Get Suckered Into These Stocks
By Lee Brodie | CNBC – 2 hours 11 minutes ago.

Before you hit the buy button, Jim Cramer thinks you should step back, at least if you're about to buy any of these stocks.

"Don't get suckered in," he said on Wednesday's broadcast. Not in the case of a handful of stocks that are moving on chatter that they could become takeover targets.

They follow:
(Want to view the video? Click here!)

Joy Global

Shares of JoyGlobal (JOY) shot up almost 5% on Wednesday, after reports suggested that Swedish conglomerate Atlas Copco may be sniffing around
"The company has acknowledged that there's been plenty of weakness in the United States because of slowing coal production," Cramer said. "Also the company has acknowledged that the business in India isn't strong enough to counterbalance decreased demand from China."

Considering the potential headwinds, Cramer can't get behind the stock. "I just don't think you should chase it. If the rumor turns out not to be true, I see the stock falling quickly to the low 60s," he said.

Kohl's

Shares of Kohl's (KSS) have popped 3% in 5 days after BMO said the department store could be a buyout target.

"If we are entering a period where the appetite for mega-deals grows, then we believe KSS could be a target company owing to its attractive valuation, debt levels and strong free cash flow," the investment bank said.

Cramer, however, sees no reason to run after this stock.

"I think you could get badly hurt buying up here if nothing happens. I would pass," he said.

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Read More from Cramer:
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Cramer: Great, Reliable Way to Make Money
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http://finance.yahoo.com/news/cr ... ocks-114432931.html
Best Buy

A recent report in the Minneapolis Star Tribune suggested that Best Buy (BBY) founder Richard Schultze may still be looking at a buyout.

According to the report, "A source close to Schulze insists that the founder is working hard to acquire Best Buy."

Since speculation first hit the market about 2 months ago, shares have marched sharply higher - as much as 40%. But again Cramer just can't get behind the momentum

Now here's the rub on all 3 stocks.

"Would the Minneapolis Star Tribune really know what's going on? Would anyone?" asked Cramer. "Does BMO really have something beyond a thesis on Kohl's? Does a newspaper report really have the inside track on Atlas Copco's next move?"

All told, there are just too many questions and not enough answers for Cramer. Therefore, the Mad Money host sees no reason to chase any of these stocks.

"I just think there's too much rumor-mongering and too few facts for my taste," he concluded.

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Base on the algorithm from Chartlab Pro, here are the 10 most overbought stocks in the market right now:


1. Marathon Oil (MPS)
2. H&R Block (HRB)
3. Tenet Healthcare (THC)
4. Tyson Foods (TSN)
5. BlackRock (BLK)
6. Goldman Sachs (GS)
7. Valero Energy (VLO)
8. Cigna (CI)
9. Thermo Fisher Scientific (TMO)
10. Hormel Foods (HRL)