September 7th - GIS K CROX

Cramer started out by looking at recession stocks and spoke of Cereal stocks and mentioned his previous picks General Mills (GIS) and Kellogg (K) and said these are still good plays. He went on to mention that cereals aren't levered to the ingredients, and what people are actually paying for are the things like the cardboard box, the plastic bags, the fuel for shipping etc. Both of these stocks are too expensive for shorting in my opinion. GIS closed today at $53.76 and traded up to $54.25 after hours (at the time of this typing) and K closed at $49.81 and was up slightly to $49.87 after hours.

Next Cramer took a look at shoes and looked at whether Croc's (CROX) was a buy or sell. He noted there was a high short percentage in the stock. He then walked us through how to determine who is right with this stock: The Bulls or The Bears. This approach to picking a stock made for some up and down trading as people tried to guess what Cramer was going say...buy or sell. On the positive side for the stock was that they are making partnerships with colleges and other places, and is trading at less then 2 times its potential growth rate. On the negative side is that it is a summer shoe and the competition is increasing with cheaper versions that are increasing in quality. In the end Cramer gave it a "restrained buy" but said it had better beat its numbers next quarter. The stock did hit $27.99 briefly while Cramer was discussing the stock, but the "restrained buy" appears to have put the reins on any after hours increase here. At the very end of the segment he even added that there was lots of insider selling!

CROX
Closing Price: $27.75
After Hours High: $28.00
Percent Increase at High: 0.86%
Price Level Off Point: $27.65
Percent Increase at Level Off Point: -0.36%
Trades on NASDAQ
Sector: Consumer Goods
Short %: 34.63%
Days to Cover: 8.2
% Held By Insiders: 30.49%
% Held By Institutions: 49.00%

Cramer picked this a while back and the stock did spike and fell for days afterward. Considering the stock is in the red after hours on a buy pick (which I have never seen before) I don't think this "pick" is going to spike much tomorrow.