CSI: Cramer, the Sequel
For the second installment of "Cramer's Stock Investigation," or CSI, Cramer investigated five retail stocks that appear to have been the victims of a market hit-and-run.
Cramer said that DSW (DSW) saw its shares hammered 28% in a single day back in May when the company missed earnings. Since then the company and its shares have been making a comeback, capped off by this week's strong earnings announcement. This stock should never have been sold, Cramer concluded.
Then there's Sears Holdings (SHLD) , a stock without a pulse for many years. Even after divesting assets and closing stores Sears is still seeing sales and revenue declines. Cramer said this stock has too many problems and investors need to stay far away.Lands' End (LE) , on the other hand, is a survivor, Cramer noted. Now that the company is free from Sears, he thinks the stock is a buy at just 15 times earnings. Speaking of survivors, Cramer called the turnaround at Abercrombie & Fitch (ANF) "remarkable" and said this stock also should never have been sold in the first place. Finally, Cramer said Ann (ANN) , formerly Ann Taylor, is benefiting from activist investors, which has prompted the company to consider selling itself to unlock value. Even without a sale, Cramer said this company has lots of options and could be worth $55 a share.