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NEW YORK ( TheStreet) -- Now that the big, bad health care event is finally behind us, Jim Cramer told the viewers of his "Mad Money" TV show Monday that it's time to get back to earnings, and the seemingly unstoppable mini-bull markets that have been developing. Cramer noted that after a brief selloff, Wall Street was able to trump Washington, as investors could finally put the uncertainty of health care behind them. He said that while he still expects a sizable selloff before new taxes begin in 2011, for now, it's back to the races.
Hidden Shoe MarketCramer identified yet another hidden bull market that no one's talking about, the bull market in shoes. He said shoes have been flying off the shelves over the last few months, but Wall Street analysts have failed to take notice. Cramer noted that most analysts cover areas too narrow to see larger trends, and that's exactly what's happening with shoes, as none of the analysts are holistically putting all of the pieces together to see the larger trend. To help illustrate his point, Cramer built a shoebox pyramid out of the boxes from the many players taking part in the rally. First, Cramer said that department stores are benefiting from the shoe trend, with retailers like Macy's ( M), Saks ( SKS) and Nordstrom ( JWN) all noting strong show sales on their most recent conference calls. Then there's the show retailers, companies like DSW ( DSW) and Foot Locker ( FL), which both reported not stellar quarters, but did provide positive guidance. There was also Finish Line ( FINL), which not only beat its numbers, but boosted its dividend. Finally, Cramer said the shoe makers are also on fire, with Deckers ( DECK), makers of the popular Ugg brand, leading the pack, up 53 points since Cramer first took notice last October. Also doing well are Sketchers ( SKX), who's sales were up 30% year over year, Steve Madden ( SHOO), which provided upside guidance, and Wolverine World Wide ( WWW), which is flirting with a 52-week high. Cramer said all of these names, including footwear giant Nike ( NKE), are all trending higher, making them attractive stops to buy before Wall Street takes notice.
True Sales GrowthContinuing with his footwear theme, Cramer explored the earnings of Nike ( NKE) even further, giving that company a buy. Cramer said Nike is a fabulous long-term story, as the company just dominates the global athletic footwear market. He said Nike derives only 43% of its sales from North America, making it a true global player, and its stock is only up 55% from its lows, far less than its rivals. Nike last came in with earnings of $1.01 a share, beating estimates by 12 cents a share on sales that increased 6.6%. Cramer said this quarter marked a transition from earnings beats coming from cost reductions and layoffs, to one that came from true sales growth. He said that recent research reports have shown the stock of Nike does best during times of true accelerated earnings growth. Cramer said the other key factor driving nike is inventory. The company ended its most recent quarter with inventory down 12% from year ago levels. "The world just doesn't have enough Nike's," exclaimed Cramer. He said while the company trades at 16 times its earnings, higher than that of Deckers or Sketchers, the stock is worth it given its best-of-breed status.
Well-Designed IPOIn the "Know Your IPO" segment, Cramer recommended MaxLinear, a semiconductor company set to come public this week under the ticker MXL. Cramer said that unlike many recent private equity-backed IPOs, which do nothing but repay a company's debt, the MaxLinear IPO is a venture capital-backed deal, and funds from its IPO are largely going towards growing its business. Cramer said MaxLinear also has a great business, as it designs chips but outsources the building of them that play right into the heart of the mobile Internet tsumani. The company's patented technology is more reliable and uses less power than its competitors, and MaxLinear sells to all of the major electronics makers in Asia. MaxLinear is growing revenue at 62% a year, and has a pristine balance sheet to boot, said Cramer. With shares of MaxLinear set to price between $11 and $13 a share, Cramer said that given a premium multiple for the company's 35% grow rate, he thinks shares are cheap up until $18.55 a share. He advised investors who can get in on the MaxLinear IPO to do so, but told other investors not to buy the company's shares in the open market after the IPO has occurred.
Lightning RoundCramer was bullish on Kohl's ( KSS), Electronic Arts ( ERTS) and Bank of America ( BAC). He was bearish on Take-Two Interactive ( TTWO), A-Power Energy ( APWR), Sanofi-Aventis ( SNE) and Diageo ( DEO). -- Written by Scott Rutt in Washington D.C. To watch replays of Cramer's video segments, visit the