Was Jim Cramer’s Call Right on These 10 Stocks?

2. Procter & Gamble Co. (NYSE:PG)

Number of Hedge Fund Holders: 79

Procter & Gamble Co. (NYSE:PG), the consumer goods giant was called a reliable long-term stock during the episode. Cramer said he was rebuilding his position in PG back then:

“Procter & Gamble’s terrific. We bought some yesterday. We sold some Procter when it first hit 160s and now we’re trying to rebuild the position. We bought some yesterday and I’m looking to buy more. Why? Because Procter & Gamble is what you buy. It’s a steady Eddie company. Whenever it’s had a break I’ve always reached for it and it’s been right to reach for.”

Procter & Gamble Co. (NYSE:PG) has climbed 7.16% since that episode, in line with Cramer’s steady, long-term endorsement.

The host of Mad Money gave his analysis on the stock again on the 12^th of February, saying:

“For example, there are a bunch of excellent well-run consumer packaged goods. They call them CPG companies. Maybe you wanna buy Procter & Gamble, a long-time favorite. There are lots of logical reasons to like them, but like I told you earlier, logic is rarely what drives the stock market on a day-to-day basis. So let, but let’s follow through here. Suppose you pick up some Procter & Gamble because you really believe in management or you like the dividend or you think that plastic and fuel costs are going down, which will boost the company’s gross margin. That’s a huge part of the expense. So you buy the stock and then it explodes higher. What’s next? Well, you have to ask yourself why is it rallying…

Let’s say you rack up a nice win in Procter, you should ask yourself if you were right or if you simply happened to be in the right place at the right time. What do I mean by right place or time? Rotation, rotation, rotation. There are times when the consumer packaged goods stocks roar higher for reasons that have nothing to do with the underlying companies.

Procter, like all consumer packaged goods plays, is a recession stock because its earnings tend to hold up during a slowing economy, its stock roars when we get lousy economic data.”