Buy Jones Apparel
AT&T and Verizon Communications may be down, Cramer said during Wednesday’s Stop Trading!, but it’s only because of fickle analysts.
The Mad Money host has said before that Wall Street’s gone cold on these two stock. Some fear the Apple iPhone’s high price point will hurt AT&T , others don’t like Verizon’s FiOS service. Now, Comcast has become the content-distribution industry’s darling.
But “these analysts shift,” Cramer pointed out. Almost any new data point could put T and VZ back in favor.
In the end, “They're all good companies,” he said. But Cramer prefers the 5% yield offered by AT&T and Verizon.
Cramer also put his stamp of approval on some picks made by Donald Hodges, chairman of Hodges Capital Management, who appeared earlier during “Street Signs.” Cramer said the money manager was “spot on” for his calls on Chesapeake Energy and Transocean.
Cramer’s charitable trust bought a bigger position in another energy stock, Cabot Oil & Gas , which is down 50%.
Owens Corning got the thumbs-up as well. Thanks to strong management, this diversified company, which works in insulation but also in wind power, blew away the numbers by cleaning up its balance sheet.
“I don't know how this company can stay independent if they keep paying down debt,” Cramer said. “It's too cheap.”
Lastly, Cramer reiterated his call on Jones Apparel. Other than VFC Corp., Jones was the only apparel retailer to report a strong quarter, he said. This company, too, has great management that’s building a better balance sheet and JNY has a new product line in Wal-Mart that’s “going like gangbusters.”
“Wes Card is an unbelievable manager,” Cramer said of the CEO. “How could you make money in this environment?”
“I continue to believe that JNY is too cheap,” he said.
Jim's charitable trust owns Cabot Oil & Gas.
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