Cramer's Stop Trading! Clorox's Clean Quarter (10/31/08)

Recap of Jim Cramer’s comments on Stop Trading! Friday October 31

Clorox (CLX), Johnson & Johnson (JNJ), VF Corp (VFC), Capital One (COF), Mastercard (MA), Visa (V), Kimberly-Clark (KMB), Avon (AVP)

While Cramer admits Clorox has “been a dog” it is “ready to roar” now that its price increases have paid off with a 15% revenue growth. Its Burts Bees acquisition is being integrated smoothly. Cramer thinks Clorox could easily reach $70, since it doesn’t have the weak-dollar overseas exposure that Avon does. Kimberly-Clark, while slow on the uptake, will be the next name in the sector to see gains. Cramer lamented that Johnson & Johnson, the “premium name in this market” experienced “one of the most unintelligent downgrades.” Even though JNJ has weak-dollar exposure, it should perform regardless of how the market moves.

 

Cramer says VFC Corp is in a great position because of lower oil prices and the cold snap. In addition, expectations are very low for the stock, which recently dropped by $30. Finally, Cramer likes Mastercard and Visa more than Capital One, because the credit card companies don’t lend money and are safer since they are transaction based. While he prefers Visa, Cramer likes both companies because they are a play on the shift from paper to plastic.

 

Seeking Alpha publishes a summary of Jim Cramer's stock picks every day including: Mad Money Recap, Lightning Round, Stop Trading and his Wall Street Confidential Picks.

Get Cramer's Picks by e-mail -- it's free and takes only a few seconds to sign up.

Seeking Alpha is not affiliated with Jim Cramer, CNBC or TheStreet.com