Cramer's Stop Trading! The Failed Bet Against Retail (3/12/10)

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Includes: ANF, C, JCG, M, RL, URBN
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Friday March 12.

Macy's (NYSE:M), Urban Outfitters (NASDAQ:URBN), Abercrombie & Fitch (NYSE:ANF), J.Crew (JCG), Polo Ralph Lauren (NYSE:RL), Citigroup (NYSE:C)

Hedge funds' bet against retail backfired as shorts scrambled to cover their positions. Not even the inclement weather kept the retail sector down; stocks like Macy's (M), Urban Outfitters (URBN), Abercrombie & Fitch (ANF), J. Crew (JCG) and Polo Ralph Lauren (RL) continued their upward march.

Cramer discussed the difference between tax avoidance and tax evasion: "The government has made it clear that it is well within your patriotic right to pay as little in taxes as legally possible," Cramer said. "I am going to take advantage of that any way I can...anyone who thinks it is patriotic (to pay taxes) doesn't understand the history or philosophy of the IRS."

However, actual tax evasion can land you in jail. Since one is usually guilty until proven innocent in tax court, it can be quite profitable to turn in someone who may be evading their taxes.

Cramer said Lehman's (OTC:LEHMQ) bankruptcy report could be a roadmap for criminal charges and its creative accounting should be investigated. He despaired of the fact that hardworking CEOs like Citigroup's (C) Vikram Pandit are mercilessly investigated while others get away with fuzzy math.

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