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( BARE) is a fad and is not going anywhere," Jim Cramer told viewers of his "Mad Money" TV show Monday.
In a segment dedicated to vanity stocks, Cramer advised those who own Bare Escentuals to ring the register. He wants people to get out of this mineral-based makeup company even though people's desire to look better and younger is what helps to make the "wheels of capitalism keep rolling."
Cramer believes that while Bare Escentuals, which
went public last month, might make money for people who set up the offering, it is not going to make money for other market players. "Stay away from spinoffs done by leveraged buyout firms," he said.
Meanwhile, while Cramer jokes all the time about
, he said, "these stocks are worth owning."
Allergan makes the wrinkle-fighting injection Botox, and Medicis markets Restylane, an injectable gel for the treatment of fine lines and wrinkles. These two are good buys because they are more "drastic" than other cosmetic stocks and face less competition, Cramer said.
However, he considers other major cosmetic companies like
"faddish, expensive and prone to missing their numbers."
"These cosmetic companies are unreliable," Cramer said.
In addition, he said he would only consider recommending
if CEO Andrea Jung were to leave.
One particular stock in this sector, however, that Cramer likes very much is
International Flavors & Fragrances
. This stock "is at its 52-week high for a reason," he said.
"As a television personality I don't need to think about scent, but in reality it is just as important as appearance," Cramer said.
IFF is the company that comes up with the scent for perfume sellers and sells it to the companies. Some companies IFF sells to are
Procter & Gamble
, he said.
"IFF is like the Swiss, it can sell to all sides and win," Cramer said, and it has consistent growth and earnings and is not susceptible to fads.
"Everything else is just too darn inconsistent and unreliable."
The Caterpillar, Schlumberger Slump
"got smacked down," Cramer said.
Although some might believe they went down because they reported "really bad numbers" and had bad quarters, "that's not what turned Friday into a slaughterhouse for these stocks," he said.
Non-secular growers are what are known as cyclicals on Wall Street, Cramer explained. "Cyclicals are companies that go up and down depending on a larger force."
"No one expected Caterpillar and Schlumberger to decline," Cramer said. "These declines were really scary."
Caterpillar's decline resulted in part because the company
missed expectations, but also because management made comments that "the era of big truck could be over," he said. "Earth movers are going to slow dramatically, they said."
However, it's clear to Cramer that while the stock is down, Caterpillar feels like
did before a giant move.
"The trucking decline is not going to be nearly as steep as Caterpillar says," he said. "You can't listen to Caterpillar now. If housing stabilizes, which it should, you should see resurgence in this stock.
"Buy Caterpillar tomorrow morning, hold it for about six months, and you'll be fine," Cramer advised. Rather than panic and run, stay in Caterpillar and buy it down here, he said.
Moving on to Schlumberger, Cramer said that on the company's conference call, all analysts could focus on was natural gas.
"The downgrades are coming," he forewarned "Analysts are worried about this stock.
Cramer said he would sell Schlumberger and go instead to
, which he owns for his
Action Alerts PLUS charitable trust and which "reported a fabulous quarter" recently.
FedEx vs. UPS
Being flexible with stocks is the only way to be successful, to not miss out on opportunities and to make big money, Cramer said.
While Cramer said he has always favored
, UPS last week reported a
"a head-turner" of a quarter, in which it beat expectations.
However, when comparing FedEx and UPS, it's apparent that FedEx has higher growth and a lower multiple, he said. And the reason why UPS' quarter looked so "great" was because it "sandbagged it," Cramer said.
The numbers UPS beat last week were the same weak numbers that made up the company's expectations, he said. "I want to stick by FedEx and don't want to be tricked by UPS' better-than-expected quarter."
Mad Mail & Sudden Death
When a viewer inquired about
( KRY) in the "Mad Mail" segment of the show, Cramer said today the Venezuelans claimed that they would rule by year-end in regard to the country's mining law, but the bad news is they've been saying that for a while.
Cramer advised holding on to Crystallex for now.
In the "Sudden Death" round, Cramer was bullish on
Life Time Fitness
Level 3 Communications
Cramer was bullish on
Advanced Micro Devices
Johnson & Johnson
Cramer was bearish on
For more of Cramer's insights during the most recent Lightning Round,
Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by
At the time of publication, Cramer was long Johnson & Johnson and Halliburton.
Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."
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