Cramer ended his normal stock picking session on MAD MONEY tonight with a telephone interview with the CEO of VF Corp (VFC) after the huge drop in the stock today. Cramer said the sell-off was one to watch because he’s made a lot of cash in this before and the unit sold needed to be sold. In a telephone interview Cramer talked with the CEO: The CEO said the release had a lot of info and the CEO thought the unit sale was lower margin and good for the company. The CEO said they guided up their organic growth rate. Cramer asked if this was lower margin and slower growth that was sold, and the CEO said they’ll improve returns. Cramer said that Wall Street misunderstood this today and the drop in the stock was wrong.
VFC closed down almost 5% at $76.46 in after-hours, but went up almost 2% in after-hours to $77.95 after Cramer defended it.
Jon C. Ogg
January 23, 2007