The quickness with which Atlanta Falcons quarterback Michael Vick went from “all pro to all schmoe” is proof that pets are the most revered, most loved part of America, Cramer said.
Vick just agreed to plead guilty to running and funding a dog-fighting ring, costing him his endorsement deals and most likely landing him in jail.
So America’s devotion to animals had Cramer looking for pet plays. PetSmart was his top pick.
PETM has a great balance sheet, he said, with $245 million in cash and $225 million set aside for an accelerated buyback.
The return customers this pet-products retailer is getting has Cramer thinking that any negative sentiment left over from the pet food recall is dissipating. And now that rival Petco is full of debt after being taken private, and most likely closing stores, that leaves room for PETM to open some.
Cramer said this stock is “very right.”
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