See CHTT's official
investor relations' site
here.
See the Yahoo!
Finance profile for
CHTT
here.
After this segment, you
can see Jim's
Sudden:Death picks
here...
Jim:
Oh boy... I read the
blogs... Okay, what did
the blogs say?... I said
to sell, sell, sell...
sell everything, sell
everything... It's like,
if people listened to
me, that would be
helpful.
It's not what I said...
I said I want to be
defensive, I want to
have tons of cash for
anything that's
near-term... in the next
five years... that
you've got to have...
Kids going to college in
two years, like mine
is... I mean, don't risk
it with the stock
market. Take that out.
Let the rest run...
Because the economy and
the market are filled
with risk right now...
and we could lose 20% in
the average stock from
here if things go
wrong...
But I am always looking
for capital preservation
stocks and companies
that can do well, even
in this environment.
Where can you find them?
I'd start by taking
shelter in the pharmacy
aisle and, this time,
with
Chattem Inc. (CHTT)...
a company that has yards
of aisle space in your
CVS... I want you to
think "Gold Bond"...
"Icy Hot"... "Selsun
Blue"...
CHTT is the ultimate
safety stock, because
people don't stop buying
toiletries, even when
the economy tanks.. And,
like many other
companies you'll
encounter in that aisle
at the drug store, CHTT
is also benefitting from
lower input costs that
have really happened
dramatically since the
peak in commodities in
the beginning of July.
About 40% of their cost
of goods sold comes from
raw materials like
resin. That's just
petroleum... fuel! And
another 40%, packaging
costs. All these costs
are coming down
gigantically. I mean, if
you're in that business,
you're like... (sound of
man jumping out
window)...
At the same time, CHTT
has managed to raise
prices in the last
quarter... to put
through a 5.4% price
increase for products,
and made up 15% of its
sales. But, you know,
it's part of the
indicies. They all go
down. That's your
opportunity.
This is a company with
solid brands...
Their top six, which
make up 60% to 65% of
sales, are either the #1
or the #2 products in
their respective
markets, which is why
CHTT's products sell at
a premium to its
competitors goods.
The last quarter was
good... a 9 cents
earnings beat with an
increase in full-year
2008 and 2009 guidance.
This is one of the few
companies left that's
safe and has growth to
speak of.
CHTT is launching 15 new
products over the next
year, and it's always
been an acquirer and
share taker.
If you're going to own
stocks right now, CHTT
is a good model for what
works. Remember, I
didn't say "sell
everything."
That's why I'm bringing
on Zan Guerry... he's
Chattem (CHTT)'s
CEO... to talk about
what's in store for this
company.
Mr. Guerry, welcome back
to Mad Money...
. . . .
.
Jim's comments AFTER the interview:
Guys, you hear what I'm saying... I
mean, read my lips... don't sell
everything. Find companies like what Zan
Guerry's done at
Chattem (CHTT).
He just said his numbers the last few
weeks have been great. How many
industrial companies can say that?
That's why a CHTT might be a better way
to go than some of these companies the
hedge funds own that go down huge all
the time. So... don't close your eyes to
opportunity, but please be cautious.
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Final Segment 2
See complete
recommendation comments
below...
Final Segment
1 Title:
'Mad Mail'...
. . . .
.
Featured
Stock(s):
See comments below...
After this segment, you
can see Jim's
Sudden:Death picks
here...
. . . .
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■
Stock Snapshots - Includes
all stocks mentioned above
■
Jim
Cramer's
rating on
this stock
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SYMBOL
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price
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day
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price
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day
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each)
na
na
na
Mad Mail
General
question about
keeping money
safe in a
401k...
Q:
Great show! It
seems these days
that you are the
only one not
politcally
motivated with
regard to
current market
conditions and
what should and
shouldn't be
done, and I
applaud you for
that. We hear a
lot these days
about being out
of the market
(in cash) and
making sure
money is in an
insured account
as a way to
protect against
current market
conditions. The
401K that I
participate in
does not have
the option to be
in cash, money
market or other
liquid type fund
and, of course,
isn't insured.
To my questions,
what should 401K
participants be
doing to try and
secure the
remaining
account value
since there
appears to be no
options but to
be in the
market?
JJC:
First of all,
that's a
travesty...
that's a
travesty you
don't have cash.
That's
unbelievable to
me... You HR
(human
relations)
person should
be... there
should be a show
trial of that HR
person... That
is just
outrageous.
Everyone should
have the cash
option. Second,
let me explain,
when I talk
about cash and
what I mean...
Let's say you
are 65, and you
know you are
going to retire
in the next five
years, and you
have your whole
portfolio in
stock the way
that Jim in
Minnesota just
mentioned... I
think that's
foolhardy. If
you need the
money in the
next five years,
then you've got
to take out as
much cash as you
can that you
might need for
the next five
years. You don't
gamble it. Let's
say that my
daughter is 16.
She's gonig to
go to college. I
need that money
for the next
four years. Why
would I let that
stay in the
market? Now,
let's turn that
around... I'm
53... okay... I
joke that I'm
63, but I'm
53... I have my
money in a 401k.
Am I cashing
out? Absolutely
not! I intend to
work for a very
long time. I'm
not taking
anything out of
the stock market
for my
retirement. If I
had to worry
about retiring
soon, I would...
Because, in 2000
and 2001, people
let that ride...
so let's go over
it again... if
you need money
for something
short term...
you need a car
or you need to
buy a house,
you've got to
send a kid to
college... don't
risk that money
in the stock
market right
now. Take that
off. But, if
you're about
retirement,
don't sell! I
mean, I've got
20 years! What
am I going to
start selling
now for?
[
end of final segment ]
Go to the SUDDEN:DEATH
SEGMENT from
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Finance from
tonight's show stocks
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Symbol keys:
A Charitable Trust stock.
- An asterisk next to a
stock symbol indicates that
Jim mentioned it is a stock
that he manages within
his
charitable trust portfolio.
You can see the complete
portfolio
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here >>
Thumbs up - indicates
he would buy the stock or,
at the very least, not sell
the stock. We do our
best to interpret Jim's
opinion on stocks, as we
think it is indicated by his
comments during the show.
Please read his comments to
decide for yourself.
Thumbs down -
indicates he has said not to
buy or to sell the stock,
based on his comments
We do our best to interpret
Jim's opinion on stocks, as
we think it is indicated by
his comments during the
show. Please read his
comments to decide for
yourself.
Back up the truck -
indicated by Jim, when he
says the stock is so good,
that he would do a
'mon-back' on the stock...
In other words, this is the
sound someone would say to a
truck driver, "Come on
back... " as he is "backing
up the truck" to load up on
his cargo. Translation
for buying stocks:
This recommendation by Jim
indicates that, after you do
your own
homework on the stock,
you should feel comfortable
loading up on it, as it is
in a good position to be
bought at this point.
Stumped. - Of the
2,000+ stocks that Jim
Cramer has in his head, for
which he has an informed
opinion, he sometimes comes
across a caller with a stock
he does not know well enough
to opine on... He then
indicates he is stumped and
will have to come back to
it, after he does some
homework of his own on
the stock. This
usually occurs during the
Lightning Round, when Jim
does not know in advance who
is calling, or what their
stock question is about.
Definitions of key phrases
used by Jim, known as
"Cramerisms":
Definition: 'Pull the
trigger' is Jim's phrase for making
the decision at that point to trade -
either to 'buy' or
to 'sell' (although he
usually uses the phrase for
buying), as if to say you
should feel comfortable
enough to make the final
decision without looking
back...
Definition: 'Ring
the Register' is Jim's phrase for
selling a stock, and making
it a final sale, that you
should not look back on.
Put it behind you.
Definition:'Let It Come In' indicates how you
may wait for it to pull back, or have the
stock price come down briefly, as your
chance (after letting it come in) to buy
the rest of your position (i.e., total
number of shares you own in that stock).
Definition:'backing it up'
or 'doing a 'mon-back' is Jim's
phrase for the metaphor of backing up a
truck to load up on a stock by buying
it. 'Mon-back is short for the
imaginary worker saying, 'Come on
back...' as the truck is backing up to
receive its load... Notice that we use
the little truck icon to indicate where
Jim has mentioned this.
Translation for buying
stocks: This
recommendation by Jim
indicates that, after you do
your own
homework on the stock,
you should feel comfortable
loading up on it, as it is
in a good position to be
bought at this point.
See more
"Cramerisms" & other
financial phrases
here >>
Helpful Websites:
See the stocks currently
known to be in Jim Cramer's
Charitable Trust at:
Stock Homework 101:
This is an excellent
upcoming site that provides
resources and links to help
you do that homework that
Jim Cramer recommends after
hearing his suggestions...
FastMoneyRecap:
This site will be a quick
summary of recommendations
made by the great Fast Money
TV show crew, that will
offer you a unique service,
to compare their picks to
Jim Cramer's past comments
about those stocks.
