Why Buyouts Did not Benefit Bed Bath & Beyond

Bed Bath & Beyond has not been successful in resisting competition from online businesses, such as Amazon, because they have never engaged in this task, said CNBC's Jim Cramer on Thursday. .

"Instead, they decided to spend a fortune to buy back shares at prices much higher than those in effect," said the animator of "Mad Money." "In retrospect, they might as well have set the money on fire."

Bed Bath & Beyond has launched an aggressive buyback program in recent years, but the stock is down almost 80% from February 2015.

Activist investors in Legion Partners, Macellum Advisors and Ancora Advisors have taken steps to straighten the home appliance retailer's account at a discount, but Bed Bath & Beyond fundamentals are "terrible," Cramer said.

"They want a new CEO and will do everything in their power to achieve this," he said. "While Steven Temares is leading the joint, you know what, I do not think you should own it." I like the plan of activists aimed at straightening the company much more than the troubled thoughts of the leadership on how to put things back in order. "

Jim Cramer of CNBC said Thursday that sales could be followed by another recovery, but investors should be prepared for more inconvenience.

The Dow Jones Industrial Average lost more than 122 points during the session, a fourth straight day, and the S & P 500 and Nasdaq Composite both lost about 0.20%.

"I'm pretty optimistic for this long-term market, but the disciplined thing to do at the moment is to raise some money, prepare for a withdrawal … and then prepare for buy again, "said the animator. "Just like a gardener who cuts plants to encourage growth, a sale can potentially create a better futures market."

Go further here

Wall Street has a tendency to cheer on well-known activist hedge funds investing in a low-performing company to turn things around, but not all activist positions are ideal for shareholders, Cramer said.

"Sometimes they come to a compromise with management and it works.Other times, they are involved in proxy fights that distract the people who run the show and the market collapses," he said. l & # 39; facilitator. "When it works, though, riding activist advocates can be very lucrative, which is why we have spent so much time talking about these situations lately."

Activist investors such as Starboard Value, Elliott Management and Legion Partners, among others, have played in recent months to transform the management of several companies.

Read here Cramer 's account of the four best stories of activists of the year.

Cramer asked David Demshur, CEO of Core Laboratories, why the price of oil has not increased "dramatically" given the problems in Venezuela, the strengthening of sanctions against Iran and the # 39; OPEC.

A recent report said "US production has reached 2.4 million barrels a day, which represents an increase of some 7 million barrels in the last eight years," said Demshur. "It's a remarkable gain in gross."

See the full interview here

Hologic manufactures diagnostic equipment and surgical products adapted to women's health.

CEO Stephen MacMillan told Cramer that Hologic has done more for women's health, especially bad and cervical cancer, than any of its competitors. Women's Health Week begins May 13th.

"I think the biggest thing and one of the most visible things right now is definitely our 3D mammogram," MacMillan said. "We invented the first 3D mammograms launched in the United States in 2011. We did not really take off until 2015-2016, and today we are in more than half of the hospitals. of the country and, frankly, in rapid expansion in the country. "

The manufacturer reported on Wednesday a modest bump in the up and down and gave a positive direction, but the stock fell before recovering those losses. It closed Thursday up 12.77% this year.

See the full interview here

During Cramer's flash game, the host of "Mad Money" quickly comments on his choices regarding stock selection of the day.

Wheaton Precious Metals Corp .: "You can own it Just for the record: I prefer Barrick Gold."

Holly Energy Partners LP: "You know what, something is wrong with this 10% return.The other day, I saw one of these very similar companies that was blitzed.They reduced the dividend. I'm worried, let me do something, work. "

Cirrus Logic Inc: "I'm thinking of the Apple world Cirrus is a supplier, I can not bless to buy it at this level.I can not, as good a business as I think."

Disclosure: The Cramer Charitable Trust holds shares in Apple and Amazon.