Jim Cramer, founder of TheStreet and host of CNBC’s Mad Money used Restoration Hardware as the model for a recipe of higher stock prices.
Cramer told TheStreet that the key ingredients for a higher stock price include a robust consumer, a big short position in the stock and sharply better-than-expected earnings per share–all factors inherent in the Corte Madera, California-based home furnishing company.
In particular, Cramer was effusive in his praise for Restoration Hardware CEO Gary Friedman who took over the company in 2001 when it was on the verge of bankruptcy before helping to turn it into the powerhouse that it is today.
“Gary (Friedman) is a remarkable merchant,” Cramer told TheStreet. “His stores are not stores; they’re galleries and it’s exciting and we’ve used a lot of his stuff. Gary has got a vision and he’s got a way to run a company. Congratulations, Gary–you really did it. The stock’s not done going higher.”