Cramer's Stop Trading! 4 Retail Stocks Will Be Rumored Down (10/11/10)

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Includes: AAPL, JNY, PKI, PVH, RL, VFC
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV program, Monday October 11.

Phillips-Van Heusen (NYSE:PVH), Jones Apparel (NYSE:JNY), VF Corp (NYSE:VFC) and Polo Ralph Lauren (NYSE:RL), Apple (NASDAQ:AAPL), PerkinElmer (NYSE:PKI)

Cramer thinks The Street will make the same error it made when making dour predictions for back-to-school sales, and will talk down Phillips-Van Heusen (PVH), Jones Apparel (JNY), VF Corp (VFC) and Polo Ralph Lauren (RL). The bears were wrong about back-to-school and Cramer thinks they will be wrong about the holidays. There is no basis for assuming these companies will perform poorly prior to the holidays, and many of them have reported vigorous sales and lean inventories.

Discussing Apple (AAPL), Cramer thinks his $22 a share fiscal 2011 earnings estimate might be too low, given the 10 million iPads the company expects to sell.

Finally, Cramer recommends PerkinElmer (PKI) on China's need for clean water, and he predicts the company will be 50% levered to China within the next five years.

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