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
TheStreet Open House

Cramer's 'Mad Money' Recap: Great Buying Opportunities (Final)

Wheeling and Dealing

In the "Executive Decision" segment, Cramer once again sat down with Chris Loughlin, CEO of TravelZoo (TZOO), an Internet travel destination that is now expanding into the local "deal" space. TravelZoo recently delivered a nine-cent-a share earnings beat on a 29% increase in revenues.

Loughlin said that TravelZoo has 23 million subscribers to its service and with local deals, the company is looking to double the amount of revenue they generate per subscriber. He said the company is currently offering local deals in only 48 markets but will be expanding to 60 markets soon.

Loughlin also said that TravelZoo has chosen to roll out its local services organically, rather than through acquisitions. He said the service provides only two deals per week, focusing on quality over quantity and revenue. Loughlin described a heated editorial process in choosing which deals will make the cut given the limited availability.

Loughlin also had great things to say about TravelZoo's European expansion. He said the Europeans get lots more vacation time than their U.S. counterparts and are far more savvy to travel deals. Loughlin called Europe an enormous market for TravelZoo, which currently only operates in four European countries.

Cramer admitted that TravelZoo is a wild trading stock, with lots of ups and downs, but also said that the company is heading in the right direction. With Groupon expected to IPO soon with a multi-billion dollar valuation, Cramer said TravelZoo is a steal at just a $1.5 billion market cap.

Customized Approach

In a second "Executive Decision" segment, Cramer welcomed Terry Lundgren, chairman, president and CEO of Macy's (M), a retailer whose stock has been on fire since the company reported an 11cent-a-share earnings beat on a 5.7% increase in revenues. Macy's also raised their guidance and doubled their dividend to 1.5%.

Lundgren explained that Macy's is looking to be competitive in the long run, which is why the company took steps years ago to transform itself back into a world-class retailer. He said the 2005 acquisition of the May Company allowed Macy's to burst onto the national scene, while consolidating its seven regional buying groups into just one has increased efficiencies.

But perhaps Macy's biggest decision, said Lundgren, was to roll out its My Macy's program, which grouped its stores into 69 districts, often with just 10 to 11 stores per district. Lundgren explained that each district is now able to buy merchandise that's right for their customers, leading to higher sales and loyalty.

Lundgren also noted that not everyone in retail is winning, which means Macy's is taking share from other competitors. He said Macy's sells higher end brands like Coach (COH) and Polo-Ralph Lauren (RL) but is still seen as a value retailer. "That's the sweet spot," said Lundgren.

Lundgren also told Cramer that Macy's customers are doing better financially. He said customers are paying down their debts and the Macy's credit portfolio is a lot stronger than it once was.

Cramer said there's a reason shares of Macy's are up 74% since he first got behind the venerable retailer on Dec 7, 2009. Macy's, he said, is still a buy.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs