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: Stocks Too Cheap (Final)

Tasty Healthy Foods

In the "Executive Decision" segment, Cramer sat down with Irvin Simon, chairman, president and CEO of Hain Celestial Group (HAIN - Get Report), a company making healthy foods that taste great. Hain shares are up 61% since Cramer first got behind the stock last April 6.

Simon said Hain has done a great job in reinventing its Celestial Tea brand, and has introduced a host of new teas and has a lot more distribution than it ever had before. In other areas, like yogurts, Hain is also making strides to offer good nutrition that tastes good.

Among the bright spots for Hain are schools, which Simon said are calling on a weekly basis to replace their traditionally fatty snacks with healthier alternatives. China is also growing for Hain, with the company's baby food now in 110 cities in China and commanding a 10% market share in Hong Kong.

Simon also noted the changing food guidelines, which not only require new food labels, but also overall are pushing for more grains and healthier foods. Even the food pyramid that we all grew up with has changed, said Simon, and Hain is there with the foods we all should be eating.

Cramer said Hain is still a great investing opportunity and could double from current levels.

Multiples No Concern

Sometimes if you wait, you miss it, Cramer told viewers. And that's certainly the case with yoga apparel maker Lululemon (LULU). Cramer said while investors may worry that the company's 42 times earnings multiple is too high, the stock continues to rocket still higher.

Cramer first got behind Lulu in September, and since then shares are up 81%. He again recommended the stock in December, and shares are up 15% in just the last two months.

When analyzing a stock like Lulu, Cramer said investors need to ignore the traditional price earnings multiple and instead look at the company's addressable market. How big can this company grow? In the case of Lulu, a lot. Cramer said this company is still in its infancy, with only 134 stores across the U.S. But Lulu is growing at a rate of 29%.

Cramer said with a $4 billion market cap, Lulu is still just one tenth the size of Nike (NIKE), yet Lulu is "shaping up" to become Nike for women. He said if investors wait, they're going to miss it.

Cramer said Lulu has everything he wants in a growth stock. Great earnings, solid management, and products that could easily expand from their current Yoga focus into running and other sports and leisure applications.

"Don't let the multiple scare you," said Cramer, who likened Lulu to Coach's (COH) 81 multiple in 2001. Over the next 10 years, shares of Coach rose 15% a year on average.

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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
QRE $0.00 0.00%
AOL $39.95 0.00%
BIDU $207.87 0.00%
BGCP $9.55 0.00%
HAIN $64.00 0.00%


DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs