The stock of TJX Companies ( TJX), the retailer that owns T.J. Maxx and Marshalls, is as cheap as its clothes, said Jim Cramer on his
"RealMoney" radio show Monday, and he wants you to buy the stock. Cramer has been bearish on retail, but said it's time to start looking for retailers that have bottomed. TJX fits the bill. TJX lowered earnings estimates last week, which is bullish for the stock, he said, because TJX now has reasonable earnings estimates it can meet. That's the first step for a stock to bottom, he said. What's more, TJX should benefit from a slowdown in the economy because people tend to shop more at T.J. Maxx and Marshalls when they don't feel as affluent. Third, the company's former CEO, Ben Cammarata, is back, said Cramer. Cramer is a big fan of Cammarata. Finally, Cramer believes that TJX should be able to sell some of its stand-alone retail stores such as Bob's Stores, A.J. Wright or HomeGoods to an "eager and willing private-equity market." TJX is a "safe and smart" buy here, said Cramer. The company's shares were recently trading up 57 cents to $21.78 on Monday.
Stealing StocksLenny "Nails" Dykstra joined Cramer to talk about Nordic American Tanker Shipping ( NAT) and Constellation Brands ( STZ). Dykstra highlighted Nordic American Tanker's 9.7% yield, but Cramer advised listeners to be cautious because tanker stocks' dividends have been known to fluctuate wildly. "It's not a layup," to get that dividend, said Cramer. A caller asked about RehabCare Group ( RHB) and HealthSouth ( HLSH). Cramer said he would sell both. Commenting on health care stocks in general, Cramer said he likes diagnostic stocks, health care cost-containment stocks and biotech. Cramer recommended diagnostic play Digene ( DIGE) last week, and he has long been bullish on UnitedHealth Group ( UNH) as a health care cost-containment play.
As for biotech, Cramer likes Genentech ( DNA) and Amgen ( AMGN).
Selling DrugsAs for the major drug stocks, Cramer said Novartis ( NVS), Wyeth ( WYE) and Sanofi-Aventis ( SNY) are very good. Schering-Plough ( SGP) is not doing badly, and Cramer will warm up to Johnson & Johnson ( JNJ) once its acquisition of Guidant ( GDT) closes. The rest of the major drug stocks are doing very badly, he said. The "bloom is off the rose" for Shanda Interactive Entertainment ( SNDA), said Cramer. The company's most recent quarter was OK, he said, but it was not as good as people were looking for. What's more, the market is not in the mood for speculative stocks right now, said Cramer. He would sell it. Cramer is steadfastly and uniformly bearish on the airlines stocks. He doesn't like any of them, not even for a trade. In response to a question about Superior Well Services ( SWSI), Cramer would ring the register. Even though SWSI has not yet been caught in the downdraft of selling that many energy stocks have experienced, Cramer expects SWSI's stock to drop at some point. Cramer would look to buy back SWSI at lower prices, or he would look to buy an oil-service company such as Schlumberger ( SLB), which is now more cheaply priced than SWSI.
Commenting on exchange-traded funds within energy, Cramer prefers the Energy Select SPDR ( XLE) to the iShares S&P Global Energy Sector Index Fund ( IXC) because the XLE is more liquid, he said. Cramer isn't giving up on energy, but he believes that the XLE will pull back to $47 unless there is a cold snap. Cramer is looking to trade energy stocks now, not to invest in them, he said. He would use any rise in oil stocks to lighten up and be ready to buy again on the way down. The XLE ended the regular trading session Monday at $48.86.