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Did you miss last night's "Mad Money" on CNBC? If so, here are Jim Cramer's top takeaways for next week's trading.
Ulta Salon (ULTA) : Short-sellers are just as prone to wishful thinking as those who are long a stock, Cramer told viewers as he took another look at Ulta Salon, which has been roaring back from its Feb 19 lows including a powerful 17% gain Friday.
Cramer said the decline in Ulta started off as general market weakness but was accelerated by a negative research report that sent shares plummeting. The bear case was made in the report that Ulta had reached saturation in its store count and that same-store sales were about to decline.
But Cramer noted that when a retailer hits saturation it happens slowly, and that's not happening with Ulta. The company justified its expansion plans by noting its salon customers spend 2.5 times more in the stores than regular customers, but there are only a limited number of salon appointments available in every store.
As for those "declining" same-store sales, Ulta posted a 12.5% gain, not loss, in its most recent quarter, and that number is up from the growth the company saw last year.
Cramer concluded the bears have simply gotten Ulta all wrong and he continues to recommend the stock.