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Current DateTime: 03:40:11 23 Nov 2009
LinksList Documentid: 33424199

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Is Walmart's Dominance Waning?
Published: Tuesday, 3 Nov 2009 | 3:37 PM ET
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By: Tom Brennan
Web Editor, Mad Money

“People are spending again,” Cramer said during Tuesday’s Stop Trading!.

He said to watch Coach [COH  Loading...      ()   ], Williams-Sonoma [WSM  Loading...      ()   ], Tiffany [TIF  Loading...      ()   ] and Nordstrom [JWN  Loading...      ()   ] as proof of the trend. The next immediate beneficiary? Ralph Lauren [RL  Loading...      ()   ], which Cramer predicted will report “a great number.”

Lean inventories have put retailers in good position going into the historically strong fourth quarter. Rather than dumping excess merchandise through sales and discounts, these companies will have better price control, Cramer said, during what should be “a very strong holiday season.”

Also in the retail world, suppliers threaten Walmart’s [WMT  Loading...      ()   ] dominance, as consolidation allows them better pricing control, too, and, as a result, wider margins. Stanley Works[SWK  Loading...      ()   ] buyout of Black & Decker [BDK  Loading...      ()   ] is a perfect example, Cramer said, and he recommended Newell Rubbermaid [NWL  Loading...      ()   ], which has “a substantial tool division,” as a play on the deal.

“We are seeing a colossal fight between Walmart and the suppliers,” Cramer said, “and right now with these mergers the suppliers are winning.”

Lastly, Cramer suggested buying American Tower [AMT  Loading...      ()   ] after its strong quarter. He said it was a better trade on smartphones right now than the warring AT&T [T  Loading...      ()   ] and Verizon [VZ  Loading...      ()   ].

“It is such a war that these stocks are hard to own,” Cramer said.

Call Cramer: 1-800-743-CNBC

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Current DateTime: 01:36:01 23 Nov 2009
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LinksList Documentid: 29779199

Current DateTime: 01:00:11 23 Nov 2009
LinksList Documentid: 29779198
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