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Mutual-Fund-Holdings.com
NEW RESOURCE!
See Ken Heebner's CGM
Focus Fund
Top 25 holdings - The No.
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Final Segment 1
Title: |
'Mad Maxx'
|
|
. . . .
. |
|
Featured Stock(s): |
The TJX Companies, Inc. (TJX)
See TJX's website
here.
Yahoo! Finance profile for TJX
here.
2nd segment picks
below...
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On this incredible day
where - basically, I'll
call it - a crash was
averted by the Fed... all
the safety stocks were
down... all the
supermarket stocks... all
the stuff that we buy...
that we expect will last
no matter what... the Procter & Gamble (PG)'s...
the
Merck (MRK)'s...
A lot of tech was down and
that's going to continue
tomorrow probably with
Apple (AAPL)
projecting that things...
not what we wanted to
hear... particularly,
light on
iPhone... light on iPod...
But there was one group
that held up the whole
day, and kept rallying
throughout the day... and
that was the retailers...
I mean, you might have
seen the retailers up
today... You know
why?...
Because, with today's
emergency 75 basis point
(3/4% rate cut), people
are starting to believe
that the Fed may actually
be for real... that
the Fed might actually
know something...
. . . .
.
The playbook says you buy
retail after the Fed gets
aggressive, because of the
expected increase in
year-over-year earnings...
Yeah, the big institutions
are definitely thinking
that far ahead... I
think you should too.
Now they're thinking about
next Christmas, and how it
has to be better than last
year's, because interest
rates will be dramatically
lower... It
makes sense... It makes
sense, when you put on a
9-month, or 12-month
hat...
. . . .
.
You have to obey the
playbook, but you also
have to acknowledge that
we've got a serious
economic slowdown, and the
Fed can't save everything,
so I think we compromise
in retail... I always like
to split the difference...
I never like to make the
full-board bet...
I think you need to own a
retailer that makes you
money in either
scenario... a stock that
should go up, regardless
of whether the Fed has
saved the day or not...
And the stock that I've
come up with... the stock
that I guess I'm going to
have to start shopping
at... is TJX Companies,
Inc. (TJX)!
. . . .
.
That's the company behind
TJ Maxx and behind
Marshall's...
These guys are the masters
of the trade-down
retail... It's
blessed because, as a
discount retailer, TJX
will thrive if things
don't turn up but, thanks
to its leadership, a big
retail turnaround is also
a win...
There are plenty of
discount retailers that I
am not recommending right
now...
TJX is different...
Part of it is their
business model, and part
of it is their brilliant
CEO, Carol Meyrowitz, who
took over at the top a
year ago, and she has just
changed this company.
She's another one of these
CEOs that I regard as
being a transformational
one.
But, whatever the cause,
nobody can deny that TJX
has been able to deliver
better than any other
retailer in America in the
last year...
This is the company that
actually reported a rise
in December same-store
sales, even as almost
every other retailer fell
apart last month...
If Meyrowitz was making
this work before the rate
cut, imagine how well
she'll do now...
And this company doesn't
come to its shareholders
empty handed... TJX comes
bearing buybacks...
So far, this year, the
company bought back $650
million worth of share...
it plans to buy another
$250 million before the
end of the month, and then
I think you get another
reload...
So, if this stock gets
hit, you know they're
right in there supporting
prices with you.
The stock is trading at
only 13x this year's
consensus earnings
estimate... It's trading
at the very low end of its
historical range...
You've got a 12% gain if
TJX just goes back to
average, and a 36% gain if
the stock trades back up
to the higher end, which
you could certainly
justify in a market where
retail is cannibalizing
itself, and TJX is the
king... of the cannibals.
The company is going too
strong for the stock to
stay down here.
. . . .
.
The Bottom Line!:
Even after this (Fed rate)
cut, there aren't too many
stocks that work... not
many companies that can
make their numbers, and
those are especially hard
to find in retail, which
is finally moving... but
TJX Companies, Inc.
(TJX)
has proven itself
worthy... it's proven that
it works... and, in my
book, that makes the stock
a buy, buy, buy.
. . . .
.
|
Jim
Cramer's
rating on
this stock |
STOCK
SYMBOL |
Closing
price
that
day |
Opening
price
next
day |
Full Company
Name/Comments
(see comments above for
each) |
|
|
TJX |
29.71 |
29.65 |
The TJX Companies, Inc. (TJX)
|
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