Cramer's Stop Trading! The Power of a CEO (10/26/10)

by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Tuesday October 26.

Coach (NYSE:COH), Ethan Allen (NYSE:ETH), Netflix (NASDAQ:NFLX), Urban Outfitters (NASDAQ:URBN), Apple (NASDAQ:AAPL)

Analysts expected a poor quarter from Coach (COH), one which would take the stock price from $50 to the mid-$30s, but the company reported such impressive numbers, including earnings of 63 cents a share over last year's 44 cents, those advocating short selling quickly changed their tune and got behind the stock. CEO Lew Frankfort is largely responsible for Coach's success, since he has been targeting aspirational shoppers as well as loyal affluent customers. Cramer thinks the power of CEO leadership is also the driving force behind the success of Ethan Allen (ETH), Netflix (NFLX) and Apple (AAPL).

I just think that people should have a little more faith in some of the CEOs in this environment. They recognize that things aren’t great in the country, and they adjust. And the CEOs who have adjusted have hit it out of the park.

Cramer thinks Urban Outfitters (URBN) will have a similar story to Coach's, since estimates are "too low" for the stock.

“This could be an interesting one to watch the next time it ticks to $30 before they report,” Cramer said.


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