The same compliments could be paid to any number of great managers: Goldman Sachs’ Lloyd Blankfein, JPMorgan Chase’s Jamie Dimon, Ford Motor’s Alan Mulally and Apple’s Steve Jobs. Money managers consider these company leaders as much as any other part of the business when deciding on which multiple to give a stock.
Add J. Crew Group’s Mickey Drexler to this list. “The greatest merchant of our lifetime,” as Cramer called him, who “has an eye both for fashion and for inventory,” boosted his third-quarter guidance so much today that the stock shot up $5.75 to $43.49, a 15% gain. Strong inventory control and a great clothing line – First Lady Michelle Obama is a fan – have generated the same success for Drexler at J. Crew that he used to turn around the Gap .
Cramer would never tell investors to ignore the balance sheet and a company’s public filings, he said, “But never forget the special sauce” – management – “and how we have to be willing to pay up for the likes of greatness.”
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