With all of today's headlines circulating around Bank Of America ( BAC), a stock which Cramer owns for his charitable trust,
Reinventing the BusinessCramer spoke with Charles Bunch, CEO of PPG Industries ( PPG), a stock which Cramer owns for his charitable trust,
Sell BlockIn the Thursday "Sell Block" segment, Cramer compared the stocks of Hanes Brands ( HBI) and Gildan Activeware ( GIL) to see which of these two T-shirt makers is worth hanging in your portfolio. According to Cramer, while the products of the two companies may be indistinguishable, the companies themselves are far from it. Both companies are up almost 200% from their bottoms earlier this year, he said. However, Gildan derives 75% of its sales from activeware, and unlike Hanes, Gildan sells its products as blanks, suitable for custom printing. With 25% of Gildan's sales comes from corporations, 20% from non-profits and another 20% from the education market, Cramer said Gildan has serious exposure to cutbacks in discretionary spending and a weak market overall for promotional products. Unlike Hanes, Gildan also is vertically integrated, meaning it has high fixed costs. As sales decline, so does margins, which have already fallen from 17% to just 3% in its most recent quarter. Cramer said it's time to sell Gildan. "The growth story is played out," he said.