"Never lose track of the big picture," Cramer told viewers as he opined on the financial stocks and explained why the banks simply cannot be owned, even after today'a strong rally. He said that too often analysts and investors alike miss the bigger picture by focusing on the smaller details. He used Citigroup ( C) as an example. According to recent analyst reports, there's a lot to like with Citigroup. The company's fundamentals are good and its business is getting better. Citigroup should be able to raise its dividend next year and the company has a fantastic valuation, trading at 40% less than its book value. Compelling? Cramer said certainly. But in this case, Cramer said that the reasons to stay away from Citigroup are too compelling to ignore. He said that all bank stocks trade in tandem, and a cascade of sovereign defaults in Europe would obliterate Citigroup along with all of the others. Cramer said that he likes Citigroup and thinks that the bank is doing a great job getting back on its feet, but it simply doesn't matter with such risks hanging over the markets. Who's right in this argument? Cramer said unfortunately, nobody. The risks are simply too great to ignore. He said that investors who want a bank stock should look at Canada's Toronto-Dominion ( TD), which has no European risk and is valued based on the size of its deposits.
Cramer's next recommendation on his "Stock Stuffers" list of stocks that work regardless of Europe was Deckers Outdoor ( DECK), which has returned 1,300% since he first recommended it in November, 2005. Cramer sat down with Angel Martinez, Deckers chairman, president and CEO to learn what's next for the footwear giant. When it comes to Deckers' continued growth, Martinez said the most important thing is to introduce new consumers to its products. He said that Deckers does that with sophistication through its brands, its stores and its marketing, all of which matter to the health of the company. Martinez said that emerging markets like China are doing well for Deckers, as the Chinese consumer wants the same thing that everyone else wants: stylish, comfortable footwear. He said that everything from luxury to casual and even the company's surfing footwear is doing well in China. As for the American consumer, Martinez said that once Uggs are in your closet, they will always be there, which is why most American consumers are in "replenishment mode" and are looking to replace their existing Uggs with a new pair this holiday season. When asked about growth in the children's segment, Martinez admitted that there is plenty of growth there, but the company chooses not to exploit it for fears that the brand would be harmed by too much emphasis on the younger consumers. He said that Deckers will continue to grow throughout all of its products and its strength is in its operating capabilities.