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NEW YORK (
) -- The retail world is an enigma these days, Jim Cramer told the viewers of his "Mad Money" TV show Wednesday.
According to Cramer, conventional wisdom would say that when high-end retail is booming, low-end retail would be a bust. But today, he added, that notion got turned upside down.
Cramer cited today's
New York Times
article, which said consumers are "trading up" for higher-end items, while doing so less often. He said this on the same day that
reported great earnings, indicating that consumers are "trading down" for less expensive private label brands.
In addition, Goldman Sachs upgraded
, a trade down retailer, Tuesday, while upgrading
, a trade-up retailer, today.
Cramer said never in his 30 years of investing has he ever seen everything working all at once. But the fact remains, he said, that this market has destroyed many of the old patterns, and if everything is working, then we can buy everything.
Cramer said tomorrow's retail sales numbers will once again bring out the naysayers, those predicting a horrible Christmas retail season. When this happens, Cramer said it'll be a great time to buy into either the high-end, or the low-end of retail, whichever makes the most sense to you.
Resilient Health Care Stock
Investors looking for a health care stock that's vaccinated from both the economy and Obama's health care reforms need to consider
, said Cramer. This healthcare products maker is doing all of the right things, yet is trading at a deep discount.
According to Cramer, no health care company comes risk free, but for Covidien, the worst it appears to be facing from current proposals would be a tax hike on its medical devices. Fortunately, only 58% of the company's sales come from medical devices, with another 25% coming from pharmaceutical products and the rest from medical supplies. Cramer said this diversification makes Covidien stand out from the pack.
Cramer said the upside in Covidien is very real, as the company makes diagnostic and preventive care products and devices which are in high demand. Covidien is also a smart operator, making small acquisitions to bolster its product lines while jettisoning its unprofitable products.
With the whole health care sector hammered by reform fears, Covidien trades at just 13.1 times its 2010 earnings, a full point below the average for large-cap health care stocks. Cramer said even if the company returns to multiples seen before health care became an issue, Covidien could see $52 a share.
Cramer followed up on
Heartland Payment Systems
, a stock which stumped him in last week's Lightning Round. He said viewers need to stay away from the stock until the full ramifications of a security breach in January can be determined.
Cramer told a second viewer that
may not be a high flier like
, but he's still a fan of the company and its stock for its dividend yield.
Cramer told a third viewer that all metals are not created equal. He said while gold is used mainly in jewelry and silver is used in a few applications, copper is primarily an industrial metal, with 30% of the world's supply routed directly to China.
He said in that market, he like
, a stock which Cramer owns for his charitable trust,
Action Alerts PLUS.
Am I Diversified?
Cramer talked with callers to see if their portfolios have what it takes. The first caller's portfolio included
Cramer said that while some may argue Ford and Oshkosh both make trucks, this portfolio was "well-played."
The second caller's top holdings included
Nordic American Tanker
Portland General Electric
Cramer said this portfolio was a tricky one, but is "properly diversified."
The third caller had
as their top five stocks.
Cramer said this high-yielding portfolio was the best he's seen in ages!
Cramer was bullish on
He was bearish on
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At the time of publication, Cramer was long Freeport-McMoRan, Bristol-Myers Squibb. BP.
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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