Cramer: Chipotle Could be The Gap of Restaurants
Restaurant chain Chipotle Mexican Grill is still a solid stock Mad Money's Jim Cramer said on Thursday's Stop Trading!
He reiterated his recent calls to hold on to the stock despite recent downgrades, saying they simply aren't impacting the stock.
"It seems to be immune to the downgrades, and what that's about is people recognizing that they've got a whole second concept coming, which is the Asian concept," Cramer said. "Time and again when a restaurant can come up with a second iteration, people can get behind it because we're all about growth and same-store sales growth."
A second concept could ignite the company in the same way The Gap was re-ignited by Banana Republic and Old Navy, Cramer said.
"I would not listen to the downgrades. I would stay in the stock," he said.
Another stock Cramer is keen on is NVIDIA . It was the single worst performer in the S&P the first half of 2010, but Cramer said that's because it was incredibly shorted.
"NVIDIA was always considered to be the single best graphics company, it just hadn't gotten its act together in terms of production," he said.
There's a lot of NVIDIA product in tablets these days, Cramer said. "If it's in tablets, it's working," he added.
Cramer also said he's closely watching a couple of good bull markets, one being in shoes.
According to the NPD Group, sales of women’s shoes climbed 8 percent last year after posting a slight decline in 2009, and Cramer fave Timberland saw fourth quarter revenue increase 26.7 percent to $491.1 million; up 28.1 percent on a constant dollar basis.
He likes both Timberland and Deckers , he said.
Another bull market on Cramer's radar is chemical companies.
"Everyone wants to talk about how low natural gas is," Cramer said. "What you should be doing is flipping that and saying 'who uses natural gas?' The chemical companies."
Cramer said Georgia Gulf delivered a great number.
Georgia Gulf reported net income of $15.1 million for the fourth quarter of 2010, compared to a net loss of $124.7 million during the same quarter in the previous year. For the full year 2010, Georgia Gulf recorded net income of $42.7 million, compared to net income of $131.1 million in 2009.
He also said LyondellBasell Industries "can go much higher."
I don't think people realize that the raw cost of these companies is down, the gross margins are exploding. They're not done," Cramer said.
As for the tech pow-wow scheduled for Thursday in California, Cramer agreed that how Steve Jobs looks at the meeting could move the market, especially Apple.
"I just like him. He's my hero and you just hope for the best...he's got more to contribute than anyone in the country right now in terms of where we can be competitive."
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