This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer's 'Mad Money' Recap: Bears Losing Momentum (Final)

Silver, Gold Plays

In the "Off The Charts" segment, Cramer went head to head with colleague Dan Fitzpatrick over the chart of iShares Silver Trust (SLV) to see if silver is actually a better investment than gold.

According to the weekly chart, Fitzpatrick noted that the silver ETF has traded sideways for almost a year, but recently broke through its resistance levels. The ETF has also seen consistent support at its 40-week moving average, and with the charts Bollinger bands narrowing, Fitzpatrick sees the silver ETF as a coiled spring ready to head to $24 over the next year.

Turning to the fundamentals, Cramer said he agrees with the charts. Silver is probably the better play, he said, but only after September. Cramer reminded viewers that September has been the best calendar month for gold, as the Indian and Chinese wedding seasons begin. He said over the past 17 years, gold has risen on average 8% in the month of September.

After September, however, Cramer said he'd swap into silver, which unlike gold, see 49% of its production used for industrial applications. "That's exactly what we want in a recovery," he said.

A Good Deal

In an exclusive "Executive Decision" segment, Cramer sat down with Emanuel Chirico, chairman and CEO of Phillips-Van Heusen (PVH), a retailer that is not worried about a double-dip recession.

Chirico said he's very excited about his company's acquisition of Tommy Hilfiger, a deal which has exceeded expectations. Chirico said Van-Heusen saw value in Hilfiger, and was able to acquire the company for just eight times earnings.

Thanks to the Hilfiger deal, Chirico said Van-Heusen has accelerated its debt repayments, paying down $400 million in debt so far. The company will also recognize $40 million in cost savings during the second half of 2010 and into 2011 thanks to the deal.

When asked about how the company was able to fare so well during the tough times, Chirico said he quickly drew down inventory levels and cut costs, but also positioned the company for the recovery and is reaping the rewards of those decisions now.

Chirico said the consumer has changed in the ailing economy. He said consumers are indeed looking for more value in what they buy, but that doesn't mean they're not willing to still pay for quality.

Cramer said Chirico was a money maker, and continued his buy recommendation on the Phillips-Van Heusen.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.99 0.00%
CREE $29.23 0.00%
NTAP $21.89 0.00%
PNRA $199.36 0.00%
SNDK $67.49 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs