Why Home Gamers Need to Ignore the Pundits
Stop listening to the stock market's pundits, Cramer said Friday.
According to commentators, all things retail are getting killed by inflation. The pundits claim that higher input costs are offsetting revenue growth from individual companies. Cramer, however, noted that high-quality retail names have been able to balk the trend.
Take Columbia Sportswear , for example. The apparel maker reported a strong quarter after Thursday's closing bell. It delivered an 8 cent beat off a 29 cent basis on better-than-expected revenues that rose by 11 percent year-over-year. The textile name produces outdoor apparel and footwear under the Columbia, Mountain Hardwear, Montrail, Pacific Trail, Sorel and other brands, all of which gained strength. Its Sorel backlog expanded by 80 percent while Montrail's increased by 70 percent.
Despite the pundit's concerns about higher raw costs, Columbia said it anticipates higher operating margins moving forward. The Portland, Ore.-based company also announced it will increase its dividend by 10 percent, which Cramer took to mean things are getting better.
Cramer likes Columbia, even though the stock has posted a 32 percent gain since he first recommended it in October 2010. He thinks Columbia is "taking control of its own destiny" by creating better products. To learn about its future prospects, Cramer chatted with CEO Tim Boyle. Check out the video to see the full interview.
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