
Jim Cramer's Top Takeaways: Treehouse Foods, Newell Rubbermaid, Brunswick
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Did you miss last night's "Mad Money" on CNBC? If so, here are Jim Cramer's top takeaways for today's trading.
Treehouse Foods (THS) - Get Report : In his first exclusive interview, Cramer spoke with Sam Reed, chairman and CEO at Treehouse, the private-label food maker that has boughtConAgra Foods' (CAG) - Get Report private-label businesses, an acquisition that more than doubles the size of Treehouse. Shares of Treehouse fell 5.6% on the news, but are up over 210% over the past 10 years.
Reed said this acquisition is a transformative event for Treehouse; his company will be 10 times larger in revenue than when it started just 10 years ago. He added ConAgra had 35 potential deals on the table, and Treehouse was the logical fit.
Asked why Treehouse can manage these businesses better than ConAgra, Reed explained his company understands private label retailers and consumers better. For many retailers, private label is now a key part of their strategy that demands custom solutions.
Reed added Treehouse can reduce costs both through its size as well as by reducing packaging and simplifying the ConAgra offerings. ConAgra put together a separate management team for the private-label businesses and that team will move to Treehouse.
Cramer said he remains a big fan of Treehouse and its newfound potential.
Newell Rubbermaid (NWL) - Get Report : In his second interview, Cramer sat down with Michael Polk, president and CEO of Newell Rubbermaid, purveyors of such brands as Sharpie pens, Graco baby products and Calphalon cookware, among many others. Shares of Rubbermaid are up 187% since Polk assumed the reins in July 2011 and the company delivered a 1 cent-a-share earnings beat Friday.
Polk said he sees potential in every one of Rubbermaid's brands and has built a disciplined culture of both innovation and brand development. Rubbermaid is a place where good ideas win, he said.
That's how a brand like Sharpie can attain 80% market share, because Sharpie excels at functional performance and customers won't use anything else. Polk said he even sees possible innovations at a brand like Elmer's Glue, which Rubbermaid acquired recently.
Turning to the company's namesake, Rubbermaid, Polk said new products under that brand will help reduce waste by keeping produce fresh for up to 80% longer.
Cramer sees the success at Rubbermaid continuing for a long time to come.
Brunswick (BC) - Get Report : For this third interview, Cramer sat down with Dusty McCoy, chairman and CEO of Brunswick, a stock that's up 10.7% over the past week after the company delivered a 3-cents-a-share earnings beat last week and offered bullish commentary.
McCoy said the main reason other luxury goods makers did not fare well this quarter is they compete against each other. Brunswick, on the other hand, is the largest boat, marine engine and fitness equipment provider in the world and therefore doesn't compete in the same environment.
McCoy continued that many investors see the company as cyclical but it has been working hard to remove the cyclicality from the business. Thus, as the U.S. dollar remains strong, Brunswick has been making more boats overseas to take advantage of the markets globally.
Cramer said he remains a fan of this luxury goods maker.
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At the time of publication, Cramer's Action Alerts PLUS had no position in stocks mentioned.











