Sell Block: Textron’s Redemption Song
Web Editor, "Mad Money"
It’s not often that a CEO on Cramer’s Wall of Shame takes the actions necessary to fully redeem himself. Instead the chief exec usually takes a permanent vacation, retiring from the firm they worked so hard to destroy and then fading into obscurity – if they’re lucky. Not so with Textron’s Lewis Campbell.
Cramer added Campbell to the Wall back on June 10, citing the boss’ stewardship, or lack thereof, since taking the helm in July 1998. The company, which operates in everything from financing to private jets and helicopters to aerospace and defense, had just held big secondary and convertible bond offerings, as well as dramatically reduced its earnings guidance. Not to mention, Campbell’s expensive air travel, most than any other CEO in the US, branded him a typical corner-office fat cat.
But since his induction, Campbell has turned Textron around, and the stock is up 61% to $18.43. The S&P 500 has climbed just 11% over the same time period. And the company today reported a 5-cent earnings beat, in addition to offering a bullish outlook for the fourth quarter.
“For a company that looked like it was struggling to survive not that long ago,” Cramer said, “Textron does sound like it’s ready to thrive.”
So how did Campbell pull off this miracle, thereby releasing his company from the Sell Block and escaping from Mad Money’s Wall of Shame? Watch the video for Cramer’s full report.
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