Cramer's Stop Trading! The Fall of Wal-Mart?(11/3/09)

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Includes: AMT, COH, JWN, NWL, RL, SWK, T, TIF, VZ, WMT, WSM
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Tuesday November 3.

Coach (NYSE:COH), Williams-Sonoma (NYSE:WSM), Tiffany (NYSE:TIF), Nordstrom (NYSE:JWN), Ralph Lauren (NYSE:RL), Wal-Mart (NYSE:WMT), Stanley Works (NYSE:SWK), Black and Decker (BDK), Newel Rubbermaid (NYSE:NWL), American Tower (NYSE:AMT), AT&T (NYSE:T), Verizon (NYSE:VZ)

The consumer is alive and kicking; sales at Coach (COH), Williams-Sonoma (WSM), Tiffany (TIF) and Nordstrom (JWN) are up; Ralph Lauren (RL) should add to the trend and "report a great number" according to Cramer. Retailers have been keeping a cautious eye on inventory to avoid losing money on having to discount items for sales. Cramer thinks that, contrary to bears' predictions, the holiday season should be good for retail.

Suppliers may be the David to the Wal-Mart Goliath, and consolidation is giving suppliers more price-control. Stanley Works' (SWK) acquisition of Black and Decker (BDK) is one example; Cramer thinks Newel Rubbermaid is a good play on the merger because of its tool division. “We are seeing a colossal fight between Wal-Mart and the suppliers,” Cramer said, “and right now with these mergers the suppliers are winning.”

One war Cramer would avoid is the price war between AT&T (T) and Verizon (VZ); he recommends buying American Tower (AMT) instead as a trade on smartphones.

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