Cramer's 'Mad Money' Recap: Fleeting Beauty Stocks

Stock quotes in this article: MRX , AGN , IFF  

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


"Bare Escentuals (BARE Quote) is a fad and is not going anywhere," Jim Cramer told viewers of his "Mad Money" TV show Monday.

In a segment dedicated to vanity stocks, Cramer advised those who own Bare Escentuals to ring the register. He wants people to get out of this mineral-based makeup company even though people's desire to look better and younger is what helps to make the "wheels of capitalism keep rolling."

Cramer believes that while Bare Escentuals, which went public last month, might make money for people who set up the offering, it is not going to make money for other market players. "Stay away from spinoffs done by leveraged buyout firms," he said.

Meanwhile, while Cramer jokes all the time about Allergan (AGN Quote) and Medicis Pharmaceutical (MRX Quote), he said, "these stocks are worth owning."

Allergan makes the wrinkle-fighting injection Botox, and Medicis markets Restylane, an injectable gel for the treatment of fine lines and wrinkles. These two are good buys because they are more "drastic" than other cosmetic stocks and face less competition, Cramer said.

However, he considers other major cosmetic companies like Estee Lauder (EL Quote), Revlon (REV Quote) and Elizabeth Arden (RDEN Quote) "faddish, expensive and prone to missing their numbers."

"These cosmetic companies are unreliable," Cramer said.

In addition, he said he would only consider recommending Avon (AVP Quote) if CEO Andrea Jung were to leave.

One particular stock in this sector, however, that Cramer likes very much is International Flavors & Fragrances (IFF Quote). This stock "is at its 52-week high for a reason," he said.

"As a television personality I don't need to think about scent, but in reality it is just as important as appearance," Cramer said.

IFF is the company that comes up with the scent for perfume sellers and sells it to the companies. Some companies IFF sells to are PepsiCo (PEP Quote), Colgate (CL Quote) and Procter & Gamble (PG Quote), he said.

"IFF is like the Swiss, it can sell to all sides and win," Cramer said, and it has consistent growth and earnings and is not susceptible to fads.

"Everything else is just too darn inconsistent and unreliable."

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