Cramer was out with bullish comments on Costco (COST) tonight. Cramer thinks the company is on fire and taking market share from BJ’s Wholesale Club (BJ). Cramer thinks COST is a must own retailer that is doing brilliant things and is a great candidate for a longer term investment (18 months). Cramer thinks the companies move into the top brand electronics markets with offering from Sony (SNE) and Samsung is bullish for Costco. Cramer also thinks that Costco offers the best warranty in retail, which allows consumers to return products years after they bought them for only the cost of membership. Consumers shopping for electronics products are going to sign up for new memberships to Costco, Cramer said. And once the company has those consumers as members, it can sell them the rest of the goods it carries, like giant jars of pickles, he said. Cramer thinks Costco is the next Best Buy (BBY).

Caller Question. A caller asked how much Costco’s move into electronics would affect Best Buy. Cramer said he had promised viewers that Best Buy wouldn’t be affected by a similar move into electronics by Wal-Mart. Now he isn’t so sure that Best Buy wont be affected by this move into electronics for Costco. He thinks it could hurt Best Buy’s PE ratio and the market may not pay up for Best Buy in the future.