Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Friday August 11. Click on a stock ticker for more analysis:
Note: The following is a re-broadcast of the May 15, 2006 Mad Money In-Depth show which aired on Friday, August 11. There is no Lightning Round.
Focus: Retail Stocks: Although Cramer does not recommend buying all of these retail stocks now, he has listed the top ten to watch and to buy when they bottom out. While these stocks may be a bit more costly on a valuation basis, Cramer says that they are consistently strong and are the retail stocks most likely to yield an excellent profit:
1.Best Buy (NYSE:BBY): "The best hard goods retailer in the US... make that the world," says Cramer who adds that this company dominates electronics, sells more DVDs and CDs than almost anybody, and is benefitting from new Apple (NASDAQ:AAPL) iPod products. He would buy this stock only if it remains cheap.
2. Lowe's (NYSE:LOW): Cramer tells investors to "shrug off the tyrannical yoke of the 'Home Despot," and to pick up LOW, because, unlike HD, it has plenty of room to grow.
3. Costco (NASDAQ:COST): Cramer calls Costco the "cheapest and best-run of all the big warehouse stores," and, unlike Wal-Mart, has room to grow. The stores sell everything from electronics to art, attract high-end customers (judging from the type of cars in the parking lot), and are doing well enough to pay their employees decent wages.
4. Men's Warehouse (MW): This company needs to more attention, says Cramer, and he is impressed with MW's original concepts: "Men's Warehouse may be the most creative of all the national chains."
5. Federated Department Stores (FD): This company owns Macy's, Bloomingdale's, Filene's and Lord Taylor, and recently acquired May's Department stores, which gives FD more choice and room to grow. "FD has the opportunity to turn a bunch of middle-of-the-road stores they bought from May into high-end Macy's and Bloomingdales," says Cramer.
6. Sears Holding Corporation (NASDAQ:SHLD): One of the reasons Cramer likes SHLD is that it is run by Eddie Lampert who began his Wall Street career when he was 14. He says this company has made a big turnaround, and expects more success from SHLD.
7. JC Penney Corporation (NYSE:JCP): "great management, terrific attention to detail and they've got all the brands you want."
8. Coldwater Creek (NASDAQ:CWTR): "it's a regional-to-national story...a lot of room to grow."
9. Starbucks (NASDAQ:SBUX): They have expanded in the U.S. sufficiently, but are looking at China. "20% of Starbucks sales will be pouring out of China 2 years from now."
10. Commerce Bancorp (CBH): "This bank is run like a retailer...will benefit bigtime from all of those Banks of NY that are going to JP Morgan... CBH capitalizes opportunistically on the disruption."
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