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Cramer's 'Mad Money' Recap: Just What the Economy Needed

Cutler also addressed some of the weakness the company saw during the quarter. He said the U.S. economy is downshifting as the fiscal cliff approaches. More and more businesses, he said, are trying to make the decision to buy or wait on their projects, which is why it's important for leaders to address this most important issue.

Turning to the building sector overall, Cutler said that Eaton is still seeing construction activity building. He said what started off as a nonresidential boom in commercial and retail buildings has now spread to residential construction. Cutler said our country is on track to return to 1.5 million housing starts a year, although it ail likely take a few years to get there.

Cramer said that with so much building ramping up, Eaton is the company investors need to own.

Executive Decision

In his second "Executive Decision" segment, Cramer sat down with Manny Chirico, CEO of PVH Corp (PVH - Get Report), on the heels of the company announcing it is acquiring Warnaco (WRC), a licensee of its Calvin Klein brand, for $2.9 billion. Cramer suggested that PVH buy Warnaco when he last spoke with Chirico on Sept 6. Shares of PVH spiked 20% on the news.

Chirico said every acquisition involves a level of risk but when your company already knows the brand you're buying and already sells over $1 billion a year of that brand, the risks are considerably less. He said the combination of Calvin Klein jeans and apparel with Warnaco's licensed Calvin underwear will solidify the brand and allow PVH to do things it couldn't do with just a licensing agreement.

Asked about the 20% spike in PVH shares, Chirico said he expected the news to be perceived positively but did not anticipate such a strong reaction.

Turning to some of PVH's other success stories, Chirico said PVH loves strong niche brands, which is why the company's acquisition of Speedo was such a great fit. When it comes to swimwear, Speedo is "the" brand to beat, which is why that high-margin business continues to be strong.

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