Cramer suggested buying Darden if it dipped in anticipation of a bad quarterly report on Tuesday because he was confident the numbers would be good. Sure enough DRI did decline, the company beat expectations, and the stock rebounded to close at $32.63 today, resulting in a 6.5% gain. Take profits now, Cramer said, and leave this trade behind.
Cramer also predicted Nike might drop after its earnings announcement on Wednesday. The stock’s down almost 10% today. Revenue from the Olympics should make next quarter much better, though, so he recommended buying NKE now while it’s on sale.
Research in Motion was a similar call, with Cramer guessing the stock would sell off after its Wednesday report. RIMM slipped almost $19, or about 13%, Thursday. That’s too good an entry point to ignore, especially since Cramer said the stock “should be up big from these levels six months from now.”
Lastly, Cramer turned his attention to retail. Aside from Wal-Mart, Costco, TJX and Urban Outfitters, he won’t recommend any other stocks in the sector.
“This group cannot be owned until we start seeing actual store closings,” Cramer said – and lots of them.
Sears, Lowe’s, Home Depot, J.C. Penney, Kohl’s – they all need to slim their store count down in a big way before Cramer will bless this group.
“Until then, I think it’s sell, sell, sell,” he said, everything except for WMT, COST, TJX and URBN.
Jim's charitable trust owns Wal-Mart.
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