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NEW YORK (
) -- "There's been a tectonic shift in market sentiment," Jim Cramer told the viewers of his
TV show Thursday. He said investors are getting back into the stock market, and they're right to do so.
Cramer said after years sitting on the sidelines, investors are once again thrilled about buying and owning stocks. He said they're putting their money to work, investing in great American companies and are finally augmenting their paychecks.
Cramer said only recently has he been getting stopped in the streets by investors who want to thank him for helping to get them back to even. He said whether its the woman who made five times her money in
or the gentleman who bought him a cup of coffee for recommending
, people are investing and making money, and now want to invest even more.
Cramer dismissed the naysayers who claim that the move in stocks is nearing an end, calling the notion "nonsense." He said the move is actually only in its infancy, and sectors from retail to autos are only now starting to move.
Cramer said stocks like
, along with
Action Alerts PLUS names like
, all remain some of his favorites.
"This move isn't over," said Cramer, as he congratulated investors for doing their homework, knowing what they're buying and ringing the register when they have huge gains.
On a Roll
In the "Executive Decision" segment, Cramer spoke with Emanuel Chirico, chairman and CEO of
, one of Cramer's favorite apparel stocks.
Chirico painted a rosy outlook for Van Heusen, citing top-line growth across the board, with the company's Calvin Klein brand up double digits, and its recent acquisition, Tommy Hilfiger, also up strongly.
He said Van Heusen's international strategy continues to center around the two brands, which are very well known and have lots of opportunity for growth.
In the U.S., Chirico said his company's strength has come largely from market share gains. He said the company continues to partner with great retailers, and currently commands 50% market share in dress shirts and 60% share in men's neckwear.
When asked about prospects in China, Chirico said China represents about $100 million in sales for Calvin Klein and another $35 to $40 million for Hilfiger. He said they're seeing double -igit growth in China in the 15% to 20% range.
Turning toward the perceived disappointing guidance the company issued on its conference call, Chirico reiterated that the company delivered a strong earnings beat in the third quarter and raised full year guidance, but also raised its marketing budgets and offered the conservative guidance that it likes to give.
He said the holiday shopping season has been "very strong" and he's confident Van Heusen will be able to grow operation margins throughout 2011, even with expected inflation in cotton prices.
Cramer remained very bullish on Philips-Van Heusen, saying "buy it on any weakness, or buy it even if it's up."
A Valuable Lesson
Continuing his "Stock-ing Stuffer" series of retail stocks, Cramer ventured into the always risky area of teen retailers. He said his last teen retail pick,
( HOTT), back on April 13, didn't fare well at all, down 27%, but did teach him a valuable lesson.
Cramer said when it comes to teen retail, it pays to stick with the cool kids, and not with the fringe players. After Hot Topic's meltdown, Cramer said he wants best of breed, and that's
Abercrombie & Fitch
Abercrombie is the best of the bunch, with the most growth, as it grows overseas and effectively incubates new store concepts. He said the company doesn't have any inventory problems and is even set to make the bold move of closing non-productive stores. Trading at just 21 times earnings, Abercrombie is cheap given its 20.4% growth rate, he said.
Cramer said he'd avoid some of the lesser players, like
, which has no momentum, and
American Eagle Outfitters
, which trades in the middle of the pack at 13 times earnings on a 13% growth rate.
Cramer did give the nod to the skating oriented
, which he said recently delivered a strong earnings beat. Cramer said he'd be a buyer into any weakness on that name.
Strong Case for Chips in 2011
In the "Sell Block" segment, Cramer sentenced the entire notion of "soft" insider information to life without parole. "You don't need inside information to have an edge," Cramer told viewers, as he made a compelling case to buy the semiconductor stocks based solely on publicly known information.
Cramer said when building a mosaic of information for a sector, he first looks to industry analysts and trade associations. In the case of the semiconductors, Cramer said the associations are predicting chip sales up 32% this year.
Next, Cramer said he turns to what the companies are saying in their filings and especially on their conference calls.
Finally, Cramer said he looks at what the distributors of products are saying. "When the distributors are doing well, the products are doing well," he said. For the semi's, that mean looking at companies like
Cramer said Avnet cited pent-up demand in its public statements, and even said that the mobile Internet will be bigger than PCs were in the 1980's. Tech Data is on record also citing "solid demand trends" thanks to new products, product refreshes and the need for increased productivity.
Put it all together and Cramer said investors have a compelling, completely legal, case for why to buy the semiconductor stocks going into 2011.
Cramer was bullish on
Chipotle Mexican Grill
He was bearish on
Chairman Ben Bernanke for his role in saving our financial system. Forget about the term "commercial paper," said Cramer, as he explained that anyone with a money fund that pays interest was in jeopardy of losing that money after the largest money fund went bankrupt shortly after Lehman Brothers collapsed.
"Bernanke did what he had to do," said Cramer, even if that meant bailing out some foreign companies with U.S. tax dollars. Cramer said the speed and brilliance of Bernanke's $1 trillion backstop saved our financial system, and Bernanke needs to be praised for his efforts in saving all of our hard earned money.
--Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer was long Apple, American Express, Prudential
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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