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NEW YORK (
) -- "The bears are on the run," an upbeat Jim Cramer told the viewers of his "Mad Money" TV show Monday.
Cramer said the bears have very few places left to hide, and the markets are now ready to roll thanks to Washington's passage of health care reforms. He outlined what he called the 10 "best-in-show" bull markets.
Cramer said that consumers are spending, on everything from teen apparel, to shoes, to electronics to the very high end. He noted that
have all been strong.
Cramer said casual dining is coming back, as evidence from
Cramer noted strength in everything from hotels to cruise lines, to destinations. He liked
Cramer again blessed
, along with its many component makers, like
Cramer noted that dozens of industrials like
, have seen strength.
Cramer said the auto market is on fire. He liked parts maker
, a stock, which he owns for his charitable trust,
Action Alerts PLUS, and
Cramer blessed the railroads, like
, and also shippers like
, another stock in his charitable trust.
8. Health care. With reforms finally out of the way, Cramer said insurers, providers and device makers are all showing strength. Stocks like
are attractive, he said.
9. Defense. There's no slowing in defense spending, said Cramer, and that's continued good news for
10. Financials. Cramer said that the rally in financials is spilling beyond the big banks and into the regional banks and even the brokers and insurers, including companies like
T. Rowe Price
Cramer said that the oils and technology seem to be taking a breather as of late, but he expects good news from those groups as well as earnings season approaches once again.
Costco Play in California
"The economy in California has turned," Cramer told viewers. He said the world's eighth largest economy, with its 12.5% unemployment and $20 billion budget deficit, is once again showing signs of life, and that means opportunities for investors.
Cramer said that retail stores will be one of the first sectors to turn, so he looked for stores that had at least 25% of their stores in the state. This led him to
, with 29% of its stores in California,
, with 26%, and
99c Only Stores
( NDN), with 75% of its stores in the state.
Cramer said while all three of these stores should benefit from a turn in California's economy,
, a stock which he owns for his charitable trust,
Action Alerts PLUS, is his favorite in the group.
Cramer said that shares of Costco have not reflected any turn in California, despite the fact that the company derives 35% of its sales from the state. He said Costco is up against easy comparisons from last year, and the stock has been kept down by a disappointing earnings miss of one cent a share last quarter.
Cramer said what investors failed to note was that the earnings miss came not from lower sales, but from higher expenses associated with a shift in the company's benefits package. Costco had stronger same-store sales and earnings momentum. The company also plans on opening 15 to 20 new stores in 2010 as well as continuing to expand in Asia.
Cramer said his bottom line is that Costco has a lot going in its favor, and as California turns, so will the stock, and investors need to be in it ahead of that move.
Cramer said that mergers and acquisitions are back on Wall Street, and apparel maker
Phillips Van Heusen
is the first big winner on the heels of its Tommy Hilfiger acquisition.
Cramer explained that the deal to acquire the privately held Hilfiger, announced on March 15, has sent shares of Van Heusen to 52-week highs, and gives the company, already dominant in the dress shirt and neckwear market, even more power.
Cramer said he was initially concerned at the $3.1 billion price tag of the merger, but now thinks that the deal is simply too big to ignore. He said the combined company will have $5 billion in sales, making it the fourth largest apparel company in the world.
Van Heusen seems to be firing on all cylinders, said Cramer, with its retail stores, wholesale business and international prospects all performing well. He said that the company trades at just 12.9 times its expected 2011 earnings, below that of
, at 13 times, and
Polo Ralph Lauren
at 16 times their earnings.
Despite this low valuation, Cramer said he would not chase the stock at its current levels and would advise waiting until the company offer some $200 million in new shares to help finance the deal. That deal, he said, should be coming in just the next few months.
Take Some Profits
It's time to take some
, another charitable trust stock, off the table, Cramer told viewers. He said if you're a trader, it's time to take a little profit, but if you're an investor, let it ride.
Cramer last recommended Apple on March 4, saying that investors need to own the stock going into the launch of the iPad. With a 13% gain in just one month, Cramer said traders need to ring the register a bit, so they can buy it back at lower levels.
For investors, however, Cramer stood buy his $300 price target for the stock, saying that the iPad is everything he hoped it would be and the company should see strong demand.
Apple, he said, trades at just 16 to 17 times its earnings after backing out the company's huge horde of cash on its books. That makes it far too cheap for the growth it offers longer term.
Cramer was bullish on
Fifth Third Bancorp
He was bearish on
-- Written by Scott Rutt in Washington D.C.
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At the time of publication, Cramer was long Johnson Controls, United Parcel Service, JP Morgan Chase.
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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