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When the economy slows down, high-end retailers such as
Whole Foods Market
(JWN - Get Report),
(COH - Get Report) and
(TIF - Get Report) continue to do well because the rich keep spending, said Jim Cramer Friday on his "Mad Money" TV show.
The "very low" end also works, he said, and the "absolute bottom of the barrel is SPAM," which is made by
(HRL - Get Report). "I think it's a buy right here," he said.
Cramer likes Hormel because people tend to buy cheaper food when the economy isn't doing well, and "Hormel is the best of breed when it comes to low-quality meat." Additionally, there is a turkey shortage, said Cramer, and Hormel should benefit from higher prices for its turkey products.
Cramer said Hormel isn't a bad company just because it sells cheaper meats. It is a "good company that fills an important niche." Boding well for Hormel is the fact that
recently reported good results, said Cramer, and if ConAgra can do well, Hormel should "put them to shame" because Hormel is a much better-run company, he said.
Cramer also believes
, a budget retailer, should start doing well.
Among restaurants, Cramer likes
as a low-end play and because of its plan to spin off its Chipotle restaurants.
Cramer also likes
. And, he's not giving up on high-end restaurant play
Ruth's Chris Steak House
Playing Hurricanes' Chemical Reactions
Cramer said he's bullish on
(NL - Get Report)
, whose subsidiary, Kronos, makes titanium dioxide, an ingredient in paint and toothpaste.
Titanium dioxide is in short supply after Hurricane Katrina hit
(DD - Get Report)
titanium dioxide plant, knocking out 5% of the world's supply until at least early 2006. Cramer expects NL Industries to benefit from price increases.