Cramer's Stop Trading! Classic Goldman (4/7/10)

Includes: EOG, FDO, GS, RL, SPLS, URBN
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Wednesday April 7.

EOG Natural Resources (NYSE:EOG), Polo Ralph Lauren (NYSE:RL), Urban Outfitters (NASDAQ:URBN), Staples (NASDAQ:SPLS), Family Dollar (NYSE:FDO), Goldman Sachs (NYSE:GS)

Fed Chairman Ben Bernanke's doubts about the recovery were not so welcome for The Street. Cramer says "the notion of a bubble is very difficult to quantify." While he acknowledged that steel may be overvalued because of Chinese demand, he says it is a matter of looking at individual sectors and insists "the data is good."

Cramer commented on the ability of companies to redeem themselves. EOG Resources (EOG) was "hammered" after a bad quarter, but gained 6 points Wednesday when analysts "just ate up" the company's presentation. A similar turnaround happened with Ralph Lauren (RL), Urban Outfitters (URBN) and Staples (SPLS), which came back from their negative quarters with successful analyst meetings. Cramer thinks Family Dollar (FDO), which has "changed the mix" and has "better controls over pricing," is a buy.

Cramer thinks Goldman Sachs' (GS) letter denying it betted against clients is "classic Goldman." Having worked at the firm and as one of Goldman's clients, Cramer says he doesn't see why there is such widespread hysteria that the bank is constantly trying to "pull the wool over people's eyes" and said "as a client, if they were going against me, I would go over to that guy's house and "explain" a few things to him."


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