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NEW YORK ( TheStreet) -- Our markets can't save the rest of world, Jim Cramer told his Mad Money viewers Friday. That's why investors headed for the exits -- they locked in profits and fled for the safety of bonds.
What will allow the bulls to return? Cramer said a bottom in oil prices wouldn't hurt, which is why he'll be focused on the earnings from Exxon Mobil (XOM) and Anadarko Petroleum (APC) Monday, to see just how far back these companies will cut production.
Betting on Boot BarnInvestors looking for a terrific little regional-to-national retail growth story should try on Boot Barn (BOOT) , Cramer told viewers. He said this speculative stock came public last October at $16 a share and has already risen to over $20. But that could be just the beginning. Cramer emphasized that Boot Barn is a small, speculative company, with just 166 stores in 26 states that sell western and work boots, apparel and accessories. Boot Barn does have a $20 billion addressable market, however, and the company projects it could support up to 400 locations because nearly 45% of its ecommerce sales stem from areas where the company has no physical stores. Boot Barn has grown same-store sales for the past 20 consecutive quarters and boasts that 89% of its merchandise is currently sold at full price. Coupons need not apply. Why is Boot Barn speculative? Cramer said it's because the company sports an operating margin of just 8%, which could rise to 10% eventually as it benefits from an improved supply chain and economies of scale. Shares of Boot Barn trade at 23 times 2016 earnings, but Cramer said he feels 29 times earnings would be more appropriate given the company's growth and potential. That would value shares 25% higher than where they trade today. Must Read: Fed Already Knows It Won’t Raise Rates Until September: Economist
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