Dean Foods also plays right into the "healthy eating" trend, with 31% of the company's products trending towards natural and organic offerings including low fat, soy and other healthy eating alternatives. In addition, Dean has hidden breakup potential, noted Cramer, with estimates that the sum of the company's parts would be worth 33% more than where shares currently trade. Even with so much going right for the company, Cramer warned price still matters. With the stock up 11% from its earnings news, he said he wouldn't be a buyer here but would wait for a pullback below $13 a share. "It would be a mistake to buy Dean Foods up here," with shares just off their 52-week highs, concluded Cramer.
A Few Choice Words
Cramer 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.