Cramer's 'Mad Money' Recap: Going 'Postale

Stock quotes in this article: ARO , TLM , BBY , BSC , GS , CAT  

Click here for an archive of Cramer's "Mad Money" recaps.


To make money, you have to be able to anticipate moves and think months ahead, Jim Cramer told viewers of his "Mad Money" TV show Friday. It may only be June, but he's already thinking back to school.

Cramer believes the No. 1 back-to-school stock this year will be Aeropostale(ARO Quote).

Although this stock was once a dog, it is now on the road to recovery. Aeropostale, which is headquartered in New York City, aims to sell clothes to young men and women between the ages of 11 and 18, but it totally "flubbed it" last year, Cramer said.

This year is the first time the company is selling shorts past June, and into July and August. Every year since it was founded in 1987, it has phased out shorts early, but this year the retailer will wait until summer ends. Last year, Aeropostale was selling sweaters and fleeces during the summer.

Plus, the company had the fashion wrong, he said. Aeropostale was not on top of the fact that denim was in last year. Now denim is out and twill is in. Aeropostale has a number of twill items.

In case people need more proof that the company is going to be the best back-to-school stock, Cramer said the two best retail analysts out there, Stacy Pak from Prudential and Dana Cohen from Bank of America are all for Aeropostale and are recommending buying it.

Cramer believes this stock is a buy for five reasons.

This is the first time the company's back-to-school products will coincide with when kids go back to school. Second, this could be Aeropostale's best year selling shorts ever. Third, while it didn't win the battle with denim, it's likely to win with twill. Fourth, the company has figured out what is in style; and finally, the company is currently doing a share buyback, which illustrates management's confidence in the company, Cramer said.

"The company blew it last year and worked extra hard this year," he said.

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