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Oct.06
7:50 PM ET
Monday, 6 Oct 2008
Executive Decision: Chattem CEO Zan Guerry

While the Dow saw a drop last Monday of 777 points, starting a week of heightened volatility, Chattem, maker of Gold Bond, Icy Hot and Selson Blue, was clocking its best week ever in Wal-Mart sales.

This is exactly the kind of stock Cramer wants investors to consider in a market as tough as this. Chattem [CHTT  Loading...      ()   ] makes products that people buy whether times are good or bad. And the company’s record Wal-Mart sales for the entire month of September prove it.

Chairman and CEO Zan Guerry told Cramer Monday that even now his company’s balance sheet is strong and that Chattem has $5 a share in cash flow. That money will go toward acquisitions, Guerry said, and new products and the marketing campaigns needed to keep them flying off store shelves.

In fact, this focus on Chattem’s brands is a big reason the company’s doing so well right now. Guerry said his top five brands are growing 15% in total. The strategy’s paying off.

In an environment where most stocks can’t be owned, Chattem is a worthwhile pick for any investor, Cramer said. Watch the video for more reasons why he thinks this company’s a buy.




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