A welcome conundrum

Should we pay up for what's up? That's the question as it regards these four worthy companies.

By Jim Cramer Nov 1, 2012 8:52AM

thestreet logoDo you pay up for what's up? I kept thinking about this all night, because I had four CEOs on Mad Money Wednesday night -- a new record -- and for each of these companies I had to soul-search as to what the right move would be.


Here's what I came up with. First there's Tanger Factory Outlet (SKT). This is the easy one. The stock barely rallied at all, and this company has been among the consistent real estate investment trusts out there. While there are others that I like more right now, including Ventas (VTR) -- whose CEO I interviewed Monday night -- you will not go wrong owning this. It's the best run of the outlet malls, and the company has boosted its dividend every year since it has come public.


Business, as they say, is booming.


Then there's Annie's (BNNY). I know the rap: It's overvalued, and it can't make the numbers, not even in this latest quarter. But revenue was stronger than expected, and the company's biggest problem lies in stocking its stuff. I like this story very much, because I think that organic food -- even fattening organic snacks -- are the way of the future.


‘Mad-Money’ recap: just what the economy needed


The toughest one is PVH (PVH). I can't recommend a stock that's gone up $19 in one day. That would be foolishness. A 21% move has occurred; it's too late. That said, when this one gets hit, and it will, you may have to circle back to it -- because its deal to buy Warnaco (WRC) is outrageously good. PVH shares rallied because the deal is accretive, but also because the company guided up, particularly for European results, where it is achieving double-digit sales growth. The betting was that this would be another VF Corp.(VFC), for which European sales fell off a cliff. Nope -- in PVH, the shorts were crushed.


Finally, there's Eaton (ETN). Here's one that works, and works right here, even with the shares up $2. The company missed the numbers. It guided down. But expectations are now at a low, and the transformative Cooper (CBE) takeout is about to close. That's huge, because it makes Eaton more immune from that miserable truck cycle, and it renders the company far more exposed to high-growing electrical equipment and controls. I admit Eaton has way too much exposure to Europe, courtesy of some ill-timed purchases that, while not disastrous, have made the stock unloved. However, this deal will make Europe less of a factor, too. Plus, the combined company is set to hit the ground running, because it has a soup-to-nuts package for the electric grid -- something you need when eight million people don't have any juice at home.


JIM Cramer's Face 


Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and is long ETN. 




More from TheStreet.com

Nov 1, 2012 1:58PM
Dear Donald rump .....I have found the President's college transcripts and birth certificate.

I have left them for you in an ACME box at the bottom of the taxpayer subsidized luxury condo buildiing in NY.   

Don't worry about the big crane hanging over the edge of the roof ....just stand on the big X ...

Meep Meep .....
Nov 1, 2012 2:29PM
Does it really make sense to keep pumping dead cat stuff, Jim? The markets are DEAD. You and the rest of the delusional elitists will be broke soon. What do you do when you haven't done anything worth doing in your whole life? Can anyone imagine Jim Cramer at the drive-up window at Wendy's pumping Regular and Biggie-sized combo's? Welcome to the America YOU made, Jim.
Nov 1, 2012 1:42PM
Well you were spot on with your gushing recommendation of Facebook at $24 last week so I guess your advice is worth listening too ...........

Oh wait anyone who bought FB the day you recommended it is down 15% in 1 week .....

Oh well forget what I said ; )
Nov 1, 2012 5:52PM
Come on Jimmy, "Big Ben" is commited to pumping air into the market and reinflating the housing market no matter what it costs down the road. Just like the past 12 years they are going to make us all feel good no matter what the cost is to future generations. Free money from the FED, phony low interest rates that destroyed the housing market and is killing savers and our friends in DC who seem bent on short term highs like a crack addict. Nothing is real anymore, the market, interest rates, stated inflation rates, ANYTHING. Face it, the "Emperor" has no clothes and more and more of us are starting to see it today.
Nov 1, 2012 11:05PM

"Meep Meep ...."


Good post VoxPopulae.  Funny!


Don't worry about Donald Trump.  He did just receive his lay-off notice from Martha Stewart.


However, he's just figured out that Curt Schilling owes him millions!


Back on topic, back in the day I owned Tanger Factory trust preferred stock I found on quantumonline, a web site for income-generating stocks.  I loved that dividend.  Some years ago, the wife and I were driving from Aurora, Missouri to Branson, Missouri and we passed a strip mall with a sign that said "Tanger Factory Outlet Mall."  What a hoot to actually see one of your investments out there in the boondocks making money for you.


Anyway, I got to get back to work holding a gun to the heads of these little kids picking cocoa beans.


I've read a lot of ranking of Cramer on his site.  He may be a wackadoodle, but if he is pumping Tanger Factory, this time . . . . he knows what the f___ he's talking about.  You heard it here from Ice Cold Sangria.


So, we need to pick out a bar in Vegas where we can all meet Wednesday morning and toast the new President.  I recomment the Bacarrat Bar at Bellagio.


Nov 1, 2012 8:52PM


"Meep Meep ...."


That was funny VoxPopulae.  Good post!



Nov 1, 2012 8:25PM

If they would split some of these stocks I`d buy them.How many shares of Apple

and google can most people buy?

Nov 1, 2012 4:33PM


I owned Tanger Factory stock some time back.  Loved the dividend.  Nowadays I stay away from REITS, but Tanger Factory is about as safe as SL Green.  Good stuff.



Nov 1, 2012 11:22PM


Posting here is very confusing now.  The messages used to be listed in posting order.  But now, it's changed.  I don't understand.  Call Doc.  Tell him MSN is sick.  We need medicine.  Good dog Lassie!



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