Chris Lafakis would pick Federated. "I mean, can it get any worse for FD? Lampert would be able to buy this franchise at the cheap. I don't think Lampert's next move is retail, however." He continues, "I'll contend that he needs to fix sears before we can start talking about what he acquires."

Cramer asked: Did you notice that Federated barely went down on those bad numbers Wednesday?

Downgraded by Oppenheimer from Buy to Neutral

Downgraded by KeyBanc from Buy to Hold

possible future pick

cramer

Federated Department Stores. Owns Macy's , one of the best known brands. Changing corporate name to Macy's, will trade on NYSE with ticker symbol "M". Great 5 year chart.

From Barron's 4/2/07

"There's nothing wrong with a stock sporting a fairly low price-to-sales ratio that also looks attractive based on free-cash-flow and a sum-of-parts basis. This describes Federated Department Stores (FD), soon to be renamed Macy's... Earnings and free cash flow should ramp further next year as margin enhancements from the May integration take hold. Sales per square foot at longtime Federated stores vastly exceeded those of former May stores...By some bullish estimates, free cash flow per share could double to $4 in two years, which would place the company squarely in those LBO screens, especially considering the significant value of its real estate."

Terry Lundgren - B.O.D.

Federated Department Stores announced a $4 billion dollar buyback which adds to its prior plan.