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
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Jim Cramer: The Indefatigable Kimberly-Clark

NEW YORK (Real Money) -- Kimberly-Clark (KMB) management doesn't understand the rules. Don't they know that Kimberly is just a dumb bond-market-equivalent play? Don't they know there's not supposed to be any real growth? Don't they know that the company is overvalued and helpless? Don't they know, most of all, that they aren't supposed to take radical action to bring out shareholder value, like they did last night when they announced a spinoff of the company's capricious health care unit?

That kind of value creation isn't supposed to happen. It's downright unfair to the bears!

Sometimes I actually feel these are the thoughts that go through the minds of those people who think the only thing that matters to the rising prices of stocks is what the Federal Reserve does. The thinking goes like this: Without lower rates, no one would pay 19x earnings for a 5% grower, and Kimberly is only where it is because of that higher dividend.

That's why, for example, of the nine major Wall Street firms that follow Kimberly, there isn't a single buy recommendation. There are six holds and three sells. This for a $42 billion company with fantastic brands that has seen its shares rise 30% so far this year.

There's no sponsorship whatsoever here, and I believe this is partly because the analysts are just waiting for the Fed to taper quantitative easing and for the stock to fall apart.

In the meantime, the company, led by the terrific Tom Falk, is constantly trying to figure out how to bring out value in a slower-growth environment. Kimberly is a relentless cost-taker-outer. It is willing to end price wars if necessary by walking away from lower-margin business, as it did in Europe not long ago. Now it is even willing to part with a business that was, at one point, viewed as integral to the diversification away from tissue and diapers, yet has by now developed into a hard-to-manage play that brings down the entire growth rate of the company.

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
DOW 16,501.65 -12.72 -0.08%
S&P 500 1,875.39 -4.16 -0.22%
NASDAQ 4,126.9670 -34.4910 -0.83%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs