Don't Discount PVH

 | Dec 10, 2013 | 1:52 PM EST
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How I wish we could ban after-hours trading. It would prevent people from losing as much money as the sellers did last night in PVH (PVH).

This is a travesty. PVH beat the numbers after-hours but the headlines said they missed the numbers because the consensus hadn't dropped from what the company said it could do.

The stock immediately lost 5 points before the company had a chance to say anything. This is a complicated company with many moving parts, but many just figured that Manny Chirico, one of the best executives in the apparel business, had simply blown it and the company was done for.

It didn't matter that he came on Mad Money and calmly explained that everything except the denim business -- 15-to-20% of the company -- is above plan and that the holiday season's been strong for them beyond jeans.

But the stock stayed down.

Then, today, in the conference call, he fleshed out what he said to me: Tommy Hilfiger's very strong, legacy is good, Europe is coming along and only the niggling part of Calvin Klein's jeans business is an issue but that will be solved by next year.

It steams me that people don't understand how wrong they are not to give Chirico the benefit of the doubt. In my new book coming out at the end of the month, I talk about how Chirico's one of these bankable CEOs whom you have to believe in because there is so much positive happening at the company.

That obviously came through on Mad Money and the call, but those who sold before listening missed it all.

Maybe they simply deserve it. Serves 'em right.

The only time I have seen the shoot-first crowd do well in this go-round is with Cisco (CSCO) where the company put out a bad release and it only got worse on the call. But there's a big difference between PVH and Cisco. Chirico's incredibly bankable but John Chambers is totally unreliable. He didn't deserve the benefit of the doubt.

PVH is now the cheapest I have seen it in ages.

The stock is a buy.

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