When Cramer inquired about Rite Aid's 9% interest rate on its bond deal, Sammons said that the weighted average interest rate of all of Rite Aid's debt after the acquisition is only slightly higher than it was before.
"And if you really think about our debt, we've shown that we can manage it," she added. Also, Sammons said that the free cash flow that Rite Aid generates for the new stores will be invested in the business and pay down debt. "This is and remains a great story," Cramer said of Rite Aid, adding that he believes it should go to $8 or $9. To view Cramer's interview with Mary Sammons, please click here.Colgate Over Crest
Recently, Latin America discovered Chinese-made toothpaste tainted with diethylene glycol, or DEG, a chemical used in antifreeze, which, according to the Food and Drug Administration, "does not belong in toothpaste, even in small concentrations." This should mean a massive loss of confidence in Chinese products, Cramer said, and the stock he believes will benefit here is Colgate-Palmolive (CL Quote). In most of the countries that have taken action against Chinese toothpaste, Colgate has room to expand, Cramer explained. He prefers Colgate to Procter & Gamble (PG Quote), maker of Crest, because Colgate has a bigger international presence than PG -- and because Cramer believes that PG is tapped out.- Loading Comments...
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