Cramer's 'Mad Money' Recap: Boots Made for Hawking

Snuggle up to Uggs this holiday season and buy Deckers Outdoor (DECK Quote - Cramer on DECK - Stock Picks) for a trade, said Jim Cramer Wednesday on Mad Money's Main Event, which was taped live in front of a studio audience.

Deckers, which makes the Uggs brand of boots as well as the Teva and Simple brands, is a stock that has failed to deliver, said Cramer, and has been a "house of pain." But, the shorts pressed too hard, and the stock "came down way too far," he said.

Even though the stock has rebounded from its 52-week low of $16.92, Cramer believes the stock is still too low at Wednesday's closing price of $23.03.

Wednesday's closing price equates to a P/E of about 10 times 2006 earnings. By comparison, Brown Shoe (BWS Quote - Cramer on BWS - Stock Picks) trades at 14 times 2006 earnings. Nike(NKE Quote - Cramer on NKE - Stock Picks) trades at 17 times earnings. Reebok was acquired by Adidas at 18 times earnings, and Stride Rite (SRR Quote - Cramer on SRR - Stock Picks) trades at roughly 18 times 2006 earnings.

What's more, Uggs were the number one selling footwear product on Amazon.com for the first 22 days of November, said Cramer.

Most importantly, though, "Deckers has somebody better than Santa on its side. They've got Oprah!" said Cramer. Oprah recently featured Uggs on her TV show, "as one of her favorite things of 2005." Oprah is the reason the stock is up over the last month and will be the reason the stock is going higher, he said.

Cramer expects Deckers to trade to $30 but not higher than $35. Any higher than $35 and the stock would be more expensive than Nike, which is best of breed, said Cramer.

« Previous Page

1 2 3

Next Page »