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NEW YORK ( TheStreet) -- We've seen the enemy and it's not who you think it is. That's what Jim Cramer told his "Mad Money" viewers Monday as he railed against the true enemy of individual investors' net worth: financial innovation. Cramer said he's a big fan of innovation in other areas such as technology, where Apple ( AAPL), a stock he owns for his charitable trust,
'Udderly' Delightful DeanWith U.S. markets continuing to be held hostage by the woes of Europe, Cramer said investors need to stick with stocks that offer domestic security. When it comes to domestic-oriented stocks, nothing is more domestic than Dean Foods ( DF), our country's largest purveyor of milk and dairy products. According to Cramer, Dean Foods has transformed itself from an "udder" disaster to a world-class food company. It delivered a 10-cent-a-share earnings beat on a 5.4% pop in revenue, with increased operating margins to boot. Dean is also cleaning up its balance sheet and enjoying declining dairy costs, which are expected to drop by 20% in 2012.
A Few Choice WordsCramer had a few choice words for J.C. Penney ( JCP) CEO Ron Johnson after the company's horrific quarterly results. "Retail turnarounds aren't easy," said Cramer, and he offered up some timely advice for the ailing retail chain. Cramer suggested Johnson take a page from the Pier 1 Imports ( PIR) playbook, as that company went from near bankruptcy in 2009 to a shining jewel in the retail world just three years later. Shares of Pier 1 were trading for just 10 cents a share in 2009, but today have returned a 15,930% gain since those near-death lows. So how did Pier 1 turn itself around? The company started with better merchandise followed by better stores. Cramer said that Pier 1 first hired a slew of new buyers and quickly changed its merchandise mix from higher-priced furniture items to lower-cost items that customers actually wanted to buy. Then it revamped its stores, displaying those new items in a more user-friendly manner that made them more accessible to shoppers. Pier 1 also stopped opening stores during its turnaround and closed all their underperforming locations. It cut costs by reducing its full-time headcount with less-expensive part-time workers. Finally, the company revitalized its website into a thriving e-commerce destination. Cramer said Pier 1 is a terrific example of a turnaround done right. He said J.C. Penney must focus on what's in front of them and not make lofty promises they cannot keep.