Ladies Night With Jim Cramer (TJX)

On tonight’s MAD MONEY on CNBC, this was actually a Ladies night where he was in front a live audience full of nothing but… ladies.  He discussed the Fed coming in with the emergency cut and how we would likely have seen a 1,000 point drop today (as we noted a 1,000 point drop was likely without an emergency intervention).  He started out with a Q&A session but he he was giving a retail stock pick that is appropriate in this environment.

Cramer noted retail worked today rather than the defensive stock picks because of retailers being hopefully helped by a rate cut all the way out to the end of this year.  In this environment in a serious economic slowdown his retailer pick that may go up regardless of the Fed is TJX Companies (NYSE: TJX) because of the discount stores T.J.Maxx and Marshall’s brand.  As these stores discount mid to high-end apparel they showed a positive number in same-store-sales for December when most retail sales were weak.  Cramer also likes the CEO as a transformational CEO that will do even better when the economy is doing better.  It has also bought back $650 million in stock and can buy back $250 million more.

If you have ever gone into one of these stores with your intimate other or on your own, you know what a zoo these can be.  Shares closed up almost 3% at $29.71 today in normal trading and shares were up almost 2% more after Cramer touted this one.  TJX has traded as low as $25.49 and as high as $32.46 over the last 52-weeks.

Jon C. Ogg
January 22, 2008