NEW YORK ( TheStreet) -- Shoot first, ask questions later. That's a sure-fire way to lose money, Jim Cramer told his "Mad Money" TV show Tuesday. Cramer reminded viewers that taking their cues from the wrong stocks can lead to major losses. Case in point, the home builders. When KB Homes ( KBH) reported a gloomy outlook last week, the entire rally in the home and home-related stocks was thrown into jeopardy. Cramer said everything, from the home builders to Sherwin-Williams ( SHW) and Home Depot ( HD), sank on the news. But then today, homebuilder Lennar ( LEN) blew away its earnings, signaling that KB Homes' problems were its alone and not that of the entire industry. Taking cues from KB Homes, said Cramer, was a mistake. The same strategy is playing out in multiple sectors, noted Cramer. Investors sold off the restaurant stocks when McDonald's ( MCD) stumbled last week, yet today fast growers Chipotle Mexican Grill ( CMG) and Panera Bread ( PNRA) hit 52-week highs. Shipper FedEx ( FDX) took down shares of UPS ( UPS) and John Deere ( DE) took down the fertilizer stocks. In all of these situations, the prudent call was to buy, said Cramer, which is why Baker Hughes ( BHI) has created opportunities to buy Schlumberger ( SLB) and Ensco ( ESV), a stock which Cramer owns for his charitable trust,
Executive DecisionIn the "Executive Decision" segment, Cramer once again welcomed Manny Chirico, chairman and CEO of PVH Corp ( PVH), a stock that's risen 130% since Cramer first got behind the company in Jan 2008. PVH recently delivered an 8-cents-a-share earnings beat on better-than-expected revenue. Chirico said that PVH is well positioned for 2012 and the company is seeing stronger-than-expected gross margins and lots of momentum in many of its brands. He said that what he dubbed "affordable luxury," items in the $40 to $70 price range, are in the sweet-spot of what American consumers are looking for. Chirico also noted that with gasoline over $4 a gallon, PVH is starting to see some pressures in its more moderately priced brands.
Turning to sales overseas, Chirico said despite weakness in Europe, PVH still expects to see sale increase 8% to 10% in 2012, although he said that he can only provide guidance on the fundamentals and cannot predict how currency fluctuations may impact the company. China was also a positive note for PVH, said Chirico. He said both the Tommy Hilfiger and Calvin Klein brands could become worth $1 billion in that country within the next four to five years. Cramer remained bullish on PVH, adding that investors who sold on the early headlines of "disappointments" after the earnings were released were very, very wrong about this well-run apparel maker. In the second "Executive Decision" segment, Cramer spoke with Don Knauss, chairman and CEO of Clorox ( CLX), one of the companies being highlighted as part of CNBC's "Hiring Our Heros" initiative to help U.S. veterans find work after deployment. Knauss said that veterans have all of the qualities a company could want in an employee, including discipline and maturity, teamwork and focus and a mindset to get things done. He said that employers get "a heck of a deal" when they hire someone out of the military. So when asked why the unemployment rate for vets is so high, Knauss said it boils down to two issues: Awareness and access. He said that many companies simply don't know all of the skills that vets can offer and they don't know where to find them. At Clorox, Knauss noted, the company has found an excellent fit in both its research and development arm as well as in logistics, two areas in particular where veterans excel. Turning to the business of Clorox, Knauss said that the company's dividend remains a priority for them, and he expects the 34-year tradition of dividend raises to continue. He noted that Clorox has doubled its dividend over the past five years. When asked about input costs, Knuass said that while natural gas prices remain low, the costs of natural gas resins, used in bottles, has not fallen that much so far.
Finally, Knauss talked about new ideas and innovations that have been coming from an increased focus on customer needs. He touted the new Brita water bottle that includes a filter for customers on the go as one such innovation that stemmed from customer suggestions. Knauss said the new bottle replaces up to 150 bottles of traditional bottled water. Cramer remained bullish on Clorox.
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