Cramer: Goldman Wrong About Kimberly-Clark
Web Editor, "Mad Money"
Goldman Sachs made a “terrible call” on Kimblerly-Clark, Cramer said during Tuesday’s Stop Trading!.
Pointing to rising pulp costs, Goldman said KMB , maker of brands like Kleenex, Scott and Huggies, among other personal-care products, should be sold. Cramer, however, disagreed, saying that the company is “doing a lot of things right.” He especially likes the 4.5% dividend yield.
“The idea of selling this stock now,” Cramer said, “is really one of the dumber things I’ve heard,” especially after management just reaffirmed the numbers.
Cramer praised Domino’s most recent ad campaign. It was a mea culpa of sorts, where the company stated openly that customers thought its pizza tasted like cardboard. While many people ridiculed the commercials, saying they’d do more harm than good, Cramer called it “perhaps the greatest PR coup I have seen in years.”
“People suddenly started talking about Domino’s,” Cramer said. “It was a homerun, and I salute them.”
“You’re seeing a monster quarter,” he continued. “I think it’s first of many.”
Lastly, Cramer described EQT’s recent land purchase in the Marcellus Shale, a huge natural-gas reserve extending throughout Appalachia, as a “steal.” Most companies that have drilled there have seen their stocks rise, he said, and EQT too is a “smart acquirer.” He doubted that management would have signed the deal “unless there was something much bigger here.”
EQT “goes higher,” Cramer said.
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