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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cramer's 'Mad Money' Recap: Financial Innovation Kills Small Investors

Dean Foods also plays right into the "healthy eating" trend, with 31% of the company's products trending towards natural and organic offerings including low fat, soy and other healthy eating alternatives. In addition, Dean has hidden breakup potential, noted Cramer, with estimates that the sum of the company's parts would be worth 33% more than where shares currently trade.

Even with so much going right for the company, Cramer warned price still matters. With the stock up 11% from its earnings news, he said he wouldn't be a buyer here but would wait for a pullback below $13 a share. "It would be a mistake to buy Dean Foods up here," with shares just off their 52-week highs, concluded Cramer.

A Few Choice Words

Cramer had a few choice words for J.C. Penney (JCP) CEO Ron Johnson after the company's horrific quarterly results. "Retail turnarounds aren't easy," said Cramer, and he offered up some timely advice for the ailing retail chain.

Cramer suggested Johnson take a page from the Pier 1 Imports (PIR) playbook, as that company went from near bankruptcy in 2009 to a shining jewel in the retail world just three years later. Shares of Pier 1 were trading for just 10 cents a share in 2009, but today have returned a 15,930% gain since those near-death lows.

So how did Pier 1 turn itself around? The company started with better merchandise followed by better stores. Cramer said that Pier 1 first hired a slew of new buyers and quickly changed its merchandise mix from higher-priced furniture items to lower-cost items that customers actually wanted to buy. Then it revamped its stores, displaying those new items in a more user-friendly manner that made them more accessible to shoppers.

Pier 1 also stopped opening stores during its turnaround and closed all their underperforming locations. It cut costs by reducing its full-time headcount with less-expensive part-time workers. Finally, the company revitalized its website into a thriving e-commerce destination.

Cramer said Pier 1 is a terrific example of a turnaround done right. He said J.C. Penney must focus on what's in front of them and not make lofty promises they cannot keep.

2 of 4

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 16,915.07 -70.54 -0.42%
S&P 500 1,964.68 -8.15 -0.41%
NASDAQ 4,396.2040 -22.83 -0.52%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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