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Why Gap's Logo Debacle Doesn't Matter

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Published: Tuesday, 12 Oct 2010 | 3:36 PM ET
By:

Producer

Days after unveiling a new logo for its retail stores, Gap succumbed to overwhelming negative comments online and decided to stick with its classic blue box emblem. But none of that matters, Cramer said Tuesday.

Stop Trading, Listen to Cramer!
"Mad Money" host Jim Cramer shares his stock picks and pans with CNBC's Erin Burnett.

The "Mad Money" host could care less about its logo. Cramer cares about the stock and said Gap is "awful." Its chart looks terrible, he said. Cramer would avoid shares of the San Francisco-based retailer.

"GAP's a bad stock and it's been a bad stock for a long time," he said. "I don't see it getting better."

Elsewhere in the retail space, Cramer said Deckers Outdoorwill have "the best holiday season" of any retailer. Based in Goleta, Calif., the shoe maker is known for its UGG brand footwear. Some may have discounted UGGs as simply a passing fad, but Cramer said they remain popular. DECK, he said, is a "great growth stock" and way to play the "shoe bull market."

Shifting gears, Cramer recommended railroad stocks "if you're green." The rails, he explained, don't use a lot of energy and are an efficient way to ship goods.

Cramer would buy CSX ahead of earnings, which the company is set to report after the closing bell, because it tends to sell off on good news. He would also look at Berkshire Hathaway, which operates Burlington Northern railroad.

Meanwhile, President Obama showed "arrogance" on his part when he announced plans to install a network of high-speed railways without talking to the railroad companies first, Cramer charged.

"I just think the business and the president just don't speak enough," he said. "It's really a shame."

Speaking of government, Cramer said he's not concerned about the possibility of a second round of quantitative easing. He praised Federal Reserve Chairman Ben Bernanke, who he said wants stocks to go higher.

"You're just throwing a little gasoline on the fire," Cramer said of QE2. "We could always use a little."

Finally, Cramer again recommended American Tower, a technology company that produces towers and other infrastructure for cellular phones. With more people using cell phones, Cramer thinks AMT will need to install more towers. He also sees growth prospects in overseas markets, including Latin America.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

 Print
The retailer reverted to its classic logo after sharp criticism, but Cramer said the whole thing won't make a difference for the stock.
  Price   Change %Change
AMT ---
BRK.A ---
CSGN ---
DECK ---
GPS ---

   
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