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Jim Cramer Says Buy Costco, But Stock Will Go Lower

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You can't trust your fellow shareholders was the message conveyed in Jim Cramer's column on Friday morning.

"If you were in a room with all the co-shareholders of your stocks right now, I think you would be shocked at what you would see. Let's take the Costco room. You see the stock at the cheapest valuation that you can recall, a great American retailer with a stock that's down 70 points from its high and off 15% for the year despite recording yet one more killer double-digit-gaining quarter Thursday night," Cramer wrote.

"You are thinking that Costco's sales in every department were superb, that costs are under control and that they are going to open a slew of stores in the second half, something that always drives profitability because it makes the most money off its membership cards and there are now 108 million cardholders, most of whom would gladly pay more if they were asked given how much they save shopping there. You've got 14% sales growth, an unheard-of number for most stores but just plain-old consistently terrific for Costco, which is a holding of my Action Alerts PLUS charitable trust," he continued.

Recap TheStreet Live: Everything Jim Cramer Is Watching in the Stock Market Friday

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