KB Home (NYSE:KBH): Cramer says that KBH's strong performance is proof that negativity on housing is excessive, since the company reported a rise in revenues and a 4% gain in the price of a typical house over last year. In spite of the 4% rise in the stock, people are "so busy burying" KBH, which Cramer considers an attractive takeover target.
Seeking Alpha publishes a summary of Jim Cramer's stock picks every day including: Mad Money Recap, Lightning Round, Stop Trading and Wall Street Confidential.
Alcoa (NYSE:AA), Rio Tinto (RTP), 3M (NYSE:MMM): Since "undermanaged companies" in metals have historically received takeout deals, Cramer expects a bid for AA from RTP, especially since shares of AA rose 6%. Concerning MMM, Cramer says management should "fix the company" before undertaking its ambitious $7 billion buyback.
Get Cramer's Picks by email -- it's free and takes only a few seconds to sign up.
Seeking Alpha is not affiliated with CNBC, Jim Cramer or TheStreet.com