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NEW YORK (
) -- "Look under the hood of this seemingly flat market, and you'll find a bull market in telco," Jim Cramer told the viewers of his "Mad Money" TV show Monday.
He said after a long hiatus, telco stocks are now the perfect investment for a recovering economy.
Cramer said while the markets traded flat today, it was clear that stocks like
have entered a new bull market phase.
e said these stocks traditinoally offer great dividends that outpace Treasury bonds, and now that unemployment might be stabilizing, they make the perfect recovery play as well.
Cramer said the key demographic for the telco stocks are the business customers, the ones that all but disappeared almost two years ago. But now that the recovery may be upon us, Cramer said the business customers are returning, and they need communication services.
Cramer said he remains a big fan of AT&T, Verizon and Windstream, and now with strengthening cashflows, he's also warming up to
juicy 7% dividend yield. He said that even beleaguered
, while still questionable, might make sense as part of a speculative portfolio. Cramer said all of these names are a lot less troublesome than they were just a few months ago.
With telco now on the move, Cramer said this bull market joins the other rolling bull markets of appliances, housewares and agriculture.
In the "Executive Decision" segment, Cramer sat down with Terry Lundgren, CEO of
, at the company's flagship store in New York City to discuss Macy's outlook for this holiday season and beyond.
Lundgren said that after coming off the worst year for retail in 20 years, he's starting to see the American consumer coming out and shopping again. He said while he's not expecting to see a big boost in sales, he's looking for the consumer to at least spend more this year than they did last year.
Lundgren touted the company's new "My Macy's" concept as one of the company's biggest success stories. He explained that "My Macy's" divided the company into 69 districts and installed a management team of 17 to 20 people in each district. With each team only managing 10 stores, Lundgren said Macy's has become more local and a lot more relevant to each Macy's customer.
Lundgren also explained that Macy's is now a national brand, with over 800 stores, and can now capitalize on its strength. He said the company's Website, macys.com, is set to generate $1 billion in sales, up 16% from last year, as the company's stores drive business to the Website and vice versa.
Lundgren also credited technology with helping in Macy's success. He said that with new inventory controls, Macy's is assuring that the right products are available at the right stores at the right times.
Continuing with his in-store visit to Macy's, Cramer received a personal tour of the company's iconic New York location with CEO Terry Lundgren.
Cramer's first stop was the
Martha Stewart Omnimedia
department, where Lundgren explained that Macy's is now the exclusive carrier for Martha Stewart, and is working hard to expanding its product offerings. Lundgren said that housewares is doing exceptionally well as more consumers entertain at home.
Cramer's next stop was in the Tommy Hilfiger department, where Tommy Hilfiger himself was there to greet them. Hilfiger explained that his partnership with Macy's has been great for both companies and the consumer. He said that Macy's has allowed Hilfiger to provide classic styles with a fresh twist, all for a great value. Hilfiger said his company has seen its best year in 25 years thanks to tighter controls on supply and demand.
Cramer's final stop on his tour was at the new home of designer Rachel Roy. Roy explained that Macy's approached her with not only a great deal, but also grass roots access to her customers. She said that it's always been her vision to provide high fashion that everyone can afford, and Macy's helps her achieve that goal.
Cramer spoke with Harris Simmons, chairman, president and CEO of
, to see how this regional bank is fairing the current economic conditionals.
Simmons explained that Zion's has raised over $1 billion in capital over the last six quarters and boosted its reserves by 15%. However, he also noted that the bank has been balancing the need for increased capital versus the dilution of its shares and is being conservative in its approach.
Simmons said there's a lot more to a bank than just its reserves. He noted the bank's exceptional margins and the strength of its core deposit base as two bright spots for the company. Simmons said that Zion's is seeing some improving trends, but is being penalized for its exposure to commerical real estate risks.
Cramer called Zion's one of the most undervalued banks given its book value, saying he sees opportunity at the company.
Cramer was bullish on
He was bearish on
-- Written by Scott Rutt in Washington D.C.
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At the time of publication, Cramer was not long any stock mentioned.
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