Cramer's Stop Trading! Goldman Should Offer AIG's IPO at a Discount (1/13/11)

Includes: AIG, CMG, DECK, GS, VFC, WFM
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Thursday January 13.

Goldman Sachs (NYSE:GS), VF Corp (NYSE:VFC), Deckers (NASDAQ:DECK), Whole Foods (WFMI), Chipotle Mexican Grill (NYSE:CMG), AIG (NYSE:AIG)

As bankers gather to discuss AIG's (AIG) IPO, there is concern over a conflict of interest for prospective IPO sponsors who might have benefited from AIG's bailout. Cramer thinks "Whoever is going to do the best job and make the most money for the people should do it." He suggested Goldman Sachs (GS) get involved in the deal, but offering a significant discount; "I think that is perfectly reasonable if they are going to do it for less. That is the right move if they say 'we are going to give back half our fee because we think it's right." Cramer added that his target for Goldman Sachs is $250.

Deckers (DECK) is a buy on VF Corp's (VFC) earnings. Cramer thinks The Street is obsessed with cotton prices, although VFC "is not totally dependent on cotton, but that is all people care about. The stock is dirt cheap," and the company has strong management and a good yield. "I like the fact that they can buy something."

While rising commodity prices are punishing food stocks, Cramer thinks Whole Foods (WFMI) and Chipotle Mexican Grill (CMG) will be less hurt by this trend because they produce proprietary food that represents environmental and health concerns. Their consumers are loyal and will be willing to pay up for these items. Corn prices may double, but that is unlikely to interfere with WFMI's multi-year highs.


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