Jarden: A Silver Lining in Tuesday’s Market?

Jarden of Eden

Cramer sorts through the action in search of winning plays and goes one on one with Martin Franklin, Jarden chairman/CEO to discuss how pricing pressures can affect future growth.

All but hidden in the largely disappointing action on Tuesday was a very positive pre-announcement from Jarden. The company, whose products include everything form Mr. Coffee machines to Oster blenders and toasters to Rawlins baseball gloves, told the Street that fourth-quarter revenues would come in ahead of expectations.

How did investors react to such great news? By taking Jarden up 80 cents, or 2.4 percent. That for a stock that sells for just 10.6 times earnings with a 10.4-percent long-term growth rate. And it was only that cheap because many analysts had expected a cut in estimates, something we now know isn’t going to happen. Cramer seemed to think JAH just didn’t get its due.

Jarden may be a mere point off its 52-week high, but Cramer thinks there’s room left to run. The company has become too proficient at refreshing old, weathered brands and turning them into must-own products that retailers want to stock. And customers aren’t afraid to pay up for them, either.

Sure, there are concerns here about rising input costs and the fact that this is a slow-growth industry. And the fact that Walmart represents a huge chunk of Jarden’s net sales—20 percent. But Cramer said he wasn’t worried about any of these. Just to be sure, though, he invited CEO Martin Franklin back to “Mad Money.” Watch the video for the interview.

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