Cramer's 'Mad Money' Recap: Star Spangled Portfolio (Final)

Executive Decision

In the "Executive Decision" segment, Cramer sat down with Farooq Kathwari, chairman, president and CEO of Ethan Allen (ETH) , a stock that's down 10% so far this year, despite the company reporting a 1-cent-a-share earnings beat on an 8% rise in revenue.

Kathwari said that the recession afforded Ethan Allen an excellent opportunity to reposition itself for growth and that's exactly what the company has been doing. He said every quarter earnings have been increasing faster than revenues, as the company levers itself into increased efficiency. Ethan Allen is also rewarding shareholders with a recent 29% boost in its dividend.

Kathwari said that Ethan Allen is now a perfect blend of personal service and technology, using both the power of its 294 design centers as well as affiliated designers that can extend the company's reach even further. Kathwari noted that 60% of the company's items have been redesigned, a remarkable feat in a very short period of time.