Playing Offense as Well as Defense
The economy could go either way, recovering, as some believe, starting in late 2009 or taking a turn for the worse. The truth is, nobody knows what’s going to happen – not even Cramer.
So the strategy then is to play both sides, instead of banking on one. That’s why Cramer recommended Nucor during Wednesday’s Mad Money, on the possibility that President Obama’s stimulus plan will work, and McCormick & Co. , a defensive play against a prolonged recession.
McCormick, a spice maker who beat the Street’s quarterly estimates today by 2 cents a share, works because consumers tend to eat at home more often when the economy’s bad. Instead of looking for unique flavors at restaurants, they jazz up their own dishes using McCormick’s products. Even McDonald’s CEO James Skinner told Cramer on Monday that the real competition isn’t from other restaurants. It’s coming from people who are dining in. And Tupperware Brands’ Rick Goings said something similar.
- More Cramer: Spice Up Your Stocks for a Downturn
To get a better idea of whether or not this thesis is right, Cramer invited McCormick & Co. CEO and President Alan Wilson to Mad Money. Watch the video for the latest on this business, penetration in Europe, the McCormick Science Institute and what it means to be a “resilient” company in this economy.
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