Archive for the ‘HON’ Category
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- "I'm old. In most cases, that's a bad thing," Jim Cramer said on "Mad Money" Wednesday. But occasionally there are benefits to being old -- and today is one of those days. These are not normal times, even in earnings season, he said. Wednesday's weakness had nothing to do with earnings, which were predominately good. The weakness, Cramer said, is about emerging markets, and the impact on our own stock markets. Cramer said he's uniquely qualified to riff on this spillover because he's been around long enough to remember investing through other emerging markets panics just like we're having right now. Turkey hiked interest rates on Tuesday night, hoping that people would stop taking money out of the country, Cramer said. He remembers that 22 years ago, Turkey was supposed to be the next Germany. He couldn't resist investing there. Well, currencies declined and in a month his money was cut in half, and then halved again as international currencies spiraled out of control. The reason you hear so much concern over markets like Turkey, Cramer said, is the concern that its problems could spread. What about Mexico? In 1994, it was all the rage. Cramer learned to stick to his knitting after his Turkey experience and keep his money at home -- and gained. Don't let the discussion about emerging markets scare you off your game, Cramer said. Stay focused on what works. This isn't like the recent euro mess, which shellacked some of the world's most developed economies. Cramer said to be patient in the face of what could be a 5% decline. It's time to evaluate your timeline. If you're in for the long haul, get your shopping list ready. You might need it. Executive Decision: Dave Cote Even though everyone seems terrified about the global economy, let's not get too despondent, Cramer said. There are still plenty of high-quality companies that are executing fabulously. Consider Honeywell , a holding in Cramer's charitable trust, Action Alerts PLUS. Last Friday, it reported great results and strong headline earnings that were lost in the shuffle of a major market selloff. CEO Dave Cote said he is very bullish on aerospace. Honeywell's aerospace segment makes up about 32% of its total sales. He said he looks at macro trends such as what is likely to happen over decades. Cote doesn't see a future where planes aren't a bigger piece of the overall pie as the world becomes more wealthy, especially in GDP per capita. Families are more dispersed, businesses become more global, and cars can't get you to those places. His company is paying attention to China, Cote said. China became Honeywell's second-biggest country for sales in 2013. Economic statistics in China aren't wholly reliable, but Honeywell is bullish on the country, with organic growth of 13% in the fourth quarter of 2013. Cote also touted Honeywell's turbocharger business, which utilizes the company's technology in jet engines with fuel efficiency implications for automobiles. Executive Decision: Doug Parker Cramer has avoided recommending airlines until recently. But with just four carriers handling 80% of domestic flights, he thinks airlines are a great buy now, none more so than the new American Airlines Group . CEO Doug Parker said the airline industry is night and day different from a generation ago. Through a number of mergers, the industry can now provide a scale that makes sense and get passengers where they want to go efficiently. It's now a business that works for investors and customers. We can always fill airplanes, Parker said. The question is, can we fill the seat at a level that covers the cost of flying that seat around? Parker said that's what the company has done poorly in the past, and that's what it's trying to doing better now. Noting the company's $10.3 billion in cash, Parker said, "We're going to look ahead and if we feel good, we'll be paying down debt and eventually returning it to our shareholders." Lightning Round In the Lightning Round, Cramer was bullish on American International Group , American Airlines. Henry Schein and B&G Foods . Cramer was bearish on Jones Energy , JetBlue Airways and ConAgra . Executive Decision: David Demshur Core Laboratories President and CEO David Demshur spoke with Cramer on the heels of the company posting quarterly highs for EPS, net income and revenue. CLB reported revenue up 9% year over year, with EPS increasing by 22%. Cramer considers this stock to be the scientist of the oil and gas industry. Demshur attributed his company's strong quarter to some new technology and activities in domestic shale plays and the Golden Triangle in deepwater areas offshore in Brazil, West Africa and the Gulf of Mexico. It provided the company with its fifth consecutive record quarter in EPS, net income and revenue. Core Labs has about 1,200 reservoirs, with plans to add 50 fields per year. Demshur says its technology enables oil companies to determine reservoir quality to better estimate their profits. Every frack stage is an opportunity, Demshur said. "We are high on the Permian Basin assets," Demshur said, and think there are additional billions of barrels of oil to be recovered there over the next several years. Core Labs expects North American activity levels in the first quarter of 2014 to ramp up from the previous quarter. Cramer said that if you believe in the technology of oil, you believe in Core Labs. No Huddle Offense There used to be a time when the State of the Union was an event on which you could invest, Cramer said. It would be terrific if we could convince countries to take more of our goods while not taking more of our jobs, and polluting less with the jobs they do take. But the opposite is true, Cramer thinks, and the President's annual speech is not all that investible. The nod to natural gas? Cramer looked at the text of the 2012 text that said the exact same thing and nothing happened. Companies like Clean Energy Fuels and Westport Innovations jumped up temporarily before returning to previous levels. It was a very nice speech. Still, the President can't get anything through Congress, and Cramer said he certainly wouldn't invest as if he could. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Chris Sahl in Boston.Click to view a price quote on HON. Click to research the Industrial industry.
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- "I like to buy stocks when they're on sale and sell them when they're overpriced," Jim Cramer told his "Mad Money" viewers Tuesday as he pondered where all of the sellers have gone. Cramer said there were plenty of sellers sending shares of Google , a stock he owns for his charitable trust, Action Alerts PLUS, lower over the past two days. Shares fell $18 Friday and another $21 Monday -- Cramer said that was the time to buy, at the lows. Google shares rebounded nearly 2% in today's session. Netflix was another great stock that was put on sale, said Cramer, falling nearly $15 at its lows. He said Amazon.com is yet another stock that's perfect for buying on a pullback. And then there's Apple , another Action Alerts PLUS holding. Last quarter, Apple gave guidance and on Monday the company said it beat that guidance. Is it the company's fault it didn't sell the 56 million iPhones analysts were expecting? They never said they would. Apple also didn't offer guidance on China, or announce any new products, but is it their fault that analysts were hoping they would? Apple is still a great company, Cramer said, as are all of these names. Yet, all of these stocks were put on sale by the markets, and the time to buy them was yesterday at the bottom. Buying on weakness is how money is made, Cramer concluded. Executive Decision: Scott Wine For his "Executive Decision" segment, Cramer spoke with Scott Wine, chairman and CEO of Polaris Industries , makers of snowmobiles and ATVs. Shares of Polaris are up 51% since Cramer first got behind the company in October 2012, but are now off $18 on disappointing 2014 guidance and overall market weakness. Wine said Polaris had a great fourth quarter with sales up 20%, which translated to a penny-a-share earnings beat. He admitted the consumer is under increasing pressure, but Polaris plans to combat that pressure by continuing to innovate. Wine said Polaris never rests on its existing products and relies on innovation to continue its market leadership position. This year, Polaris will be introducing new products in every category, he noted. When asked about growing inventories at the dealer level, Wine explained that with a growing product line, dealers are carrying more inventory and, in many cases, wish they had more, not fewer, items in stock. That said, Polaris is still working hard to manage inventories better to make sure dealers have what they need when they need it. Cramer urged investors to read the reports Polaris puts out because the company lays out an honest depiction of its business, outlining both the good and the bad, making sure there are never any surprises. Off the Charts In the "Off The Charts" segment, Cramer went head to head with colleagues Carly Garner and Carolyn Boroden over the direction of the overall markets. Garner looked at a long-term monthly chart of the S&P 500 and noted that according to the RSI, or relative strength indicator, the index has been in overbought territory for quite some time, signaling the markets have moved too far, too fast. The last time the markets saw peaks this high were right before the 2007 and 2001 downturns. Ouch. Turing to a daily chart, the S&P has been consistently seeing a floor of support at its 100-day moving average, which is now $1755, or 2% lower from current levels. Garner noted if the S&P doesn't hold that level, things could get ugly, fast. Boroden offered a different take, noting that with the markets near a floor of resistance, the rally could resume soon. But, she also cautioned that the S&P must clear resistance at $1823 or that rally will vaporize. Boroden also looked at the Dow Jones Industrial Average, noting that the Dow could see a 900-point decline, while the tech-heavy Nasdaq is also signaling overbought conditions also not seen since 2008, 2001 and, yes, 1987. Cramer said these charts should tell investors the market technicians will be ready to sell at a moment's notice, so they need to be prepared for increased selling on the next down day. Lightning Round In the Lightning Round, Cramer was bullish on Pfizer , Bristol-Myers Squibb , Acadia Healthcare , American States Water , Aqua America , Agilent Technologies and SandRidge Energy . Cramer was bearish on Arena Pharmaceuticals and Windstream . Cramer on the Gridiron With the Super Bowl just days away, Cramer once sat down with Eric Grubman, executive vice president of the National Football League, to talk about the business of football. Grubman said that only the NFL, with its hundred of millions of fans around the world, is able to move the needle for its advertisers and partners. He said sponsors such as Procter & Gamble are seeing a lot of success with their NFL affiliations. Grubman said the rise of fantasy football has also helped to bring the sport to thousands of new families and is bridging generational gaps and appealing to the statisticians in all of us. When asked about charges the NFL doesn't pay its fair share of taxes, Grubman responded that the NFL does pay taxes, but it does so when the money is distributed to the teams. He also noted that everything the league does is fully audited. Finally, when asked whether there is any chance of a power outage at the game, Grubman said that the stadium is ready and the lights will be on. No Huddle Offense In his "No Huddle Offense" segment, Cramer told viewers that in today's market "lumpy" equals sell. Apple may have beaten its estimates but iPhone sales were, well, lumpy, and that led to shares selling off hard. Seagate has been doing everything right, buying back stock and boosting its dividend, but sales were also lumpy, plunging shares 11.5%. Cramer said investors have no tolerance for inconsistency, which is why shares of Ethan Allen have floundered because its sales are up one month, down the next. Then there's all of China -- no consistency there either. What has no lumps? How about United Technologies or Honeywell ? Cramer said momentum is building at both those companies. DR Horton is another standout, with its share up 9%, with no lumps to be found. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDCClick to view a price quote on GOOG. Click to research the Internet industry.
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- The markets are moving at lightning speed, Jim Cramer said on "Mad Money" Wednesday. That means in order to be successful, investors need to be able to navigate the crosscurrents in real time. That was the case with Apple , a stock Cramer owns for his charitable trust, Action Alerts PLUS. Apple had been trading for weeks on expectations of sales in China. Today, activist investor Carl Icahn called the company "disgraceful" for not returning more capital to shareholders -- instantly, the markets forgot about China and started trading on Icahn. eBay posted in-line earnings today with miserable guidance, but all turned sunny when Icahn made a comment that he may get involved with the company and advocate a breakup. Another company that turned on a dime was Netflix , which saw shares surge 17% on huge earnings and subscriber growth. Meanwhile, IBM shares fells as its lofty goals and five-year plans appear to be faltering badly. In other sectors, from oil and natural gas to telco equipment, the trading has been fast and furious, Cramer concluded. That's why investors need to hold onto their hats and prepare for what could be a wild ride. Executive Decision: Moshe Gavrielov For his "Executive Decision" segment, Cramer spoke with Moshe Gavrielov, president and CEO of Xilinx , an Action Alerts PLUS holding that's proven Cramer's rule of never trading the headline. After shares plummeted on a penny-a-share earnings beat with weaker guidance, they quickly rebounded 2.2% as savvy investors looked at the key metric, Xilinx' new 28-nanometer chip sales, which were up 79% year over year. Gavrielov said that while Xilinx was only able to deliver at the low end of its revenue range for the quarter, its other metrics came out just fine. He said the company is still on track for 2% to 6% growth for 2014 and the company is still in the early stages of the new 28 nanometer rollout. When asked why 28 nanometers is so important, Gavrielov explained these new, smaller chips are necessary to bring features like video to cellphones. Video is very demanding on both phones and infrastructure, he noted, which is why we're seeing a surge in spending to keep wireless customers happy around the globe. Turning to the topic of gross margins, Gavrielov said that while margins came in lighter this quarter, he fully expects Xilinx' other, higher margin businesses to catch up later in 2014, returning margins to traditional levels. Cramer said pointedly that shares of Xilinx are headed higher. Diageo vs. Brown-Forman With the news that Beam is getting taken over at a 25% premium, there's no denying the spirits business is on fire, Cramer told viewers. But of the two remaining pure plays, Diageo and Brown-Forman , which one is the better investment? Cramer said while he likes both companies and both stocks he's giving the edge to Brown-Forman. Cramer said Diageo remains a terrific long-term investment, but in the near term the company derives 42% of its sales from the emerging markets, which have been spotty of late. The company does sport a 3% yield, but it also trades at 19 times earnings with an 11% growth rate. Given that shares are at their 52-week highs, Cramer said he needs to see a meaningful pullback before he'll find Diageo compelling. Brown-Forman, on the other hand, is the smaller of the two companies and has more room to grow. The company is levered to whiskey with its Jack Daniels brand and whiskey is outperforming the industry as a whole. Forman currently gets 45% of sales from the U.S., with far less stemming from emerging markets. The company's prospects in areas like Russia and Poland are sizable. Cramer said he'd also like to see a pullback in Brown-Forman as well, but even at current levels the stock is attractive. Lightning Round In the Lightning Round, Cramer was bullish on Boston Private , Tesla Motors , LinkedIn and Apollo Group . Cramer was bearish on Comstock Resources and Caterpillar . No Huddle Offense In his "No Huddle Offense" segment, Cramer reminded viewers that when it comes to trading around earnings season, it's all about expectations. Expectations determine whether a stock trades up or down and by how much.That's why a stock like Coach saw its shares crushed after it reported. The stock was well off its lows and investors were blindsided by same-store sales that were twice as bad as expected. That's also how a stock like Norfolk Southern saw its shares spike when it reported. Earlier in the week, the expectations were that Norfolk would follow its rival CSX lower. In the case of Intel , an Action Alerts PLUS name, Cramer said expectations had simply gotten so high, there was no way the company could ever meet them. Those were just three examples of why expectations are everything when it comes to earnings. Am I Diversified? In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets. The first portfolio included Royal Bank of Canada , Suncor , Coca-Cola , Altria and McDonald's . Cramer said this portfolio had too much food and beverage and needed to sell Coke and add a drug stock like Bristol-Myers Squibb . The second portfolio's top holdings included International Game Technology , Wisdom Tree , U.S. Ecology , Precision Castparts and Estee Lauder . Cramer said this portfolio was properly diversified. The third portfolio had Google , Gilead Sciences , JPMorgan Chase , Honeywell and Walt Disney as its top five stocks. Cramer said he seas a big fan of this portfolio and its diversification. The fourth portfolio's top stocks were Seadrill , NXP Semiconductor , Biomarin , American Railcar and International Game Technology . Cramer also blessed this portfolio as properly diversified. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDCClick to view a price quote on AAPL. Click to research the Consumer Durables industry.
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- Four times a year the markets get earnings fever, Jim Cramer told his "Mad Money" TV show viewers Friday. But investors need to read beyond the headlines because it's the expectations, not the earnings, that really matter. That's why Cramer will be watching out for Delta Airlines when it reports on Tuesday. He said with such heightened expectations he'd rather buy American Airlines on any Delta weakness. Cramer would be a buyer of Johnson & Johnson , a stock he owns for his charitable trust, Action Alerts PLUS, on any weakness, but not IBM , which, despite its low expectations, needs to tell investors how bad things really are. Wednesday brings earnings from Coach , Norfolk Southern , United Technologies , Netflix and eBay . Cramer said to be careful with Coach, Norfolk, eBay and Netflix but be a buyer of United Tech, which has already tempered the enthusiasm. Then, on Thursday, it's Lockheed Martin , a stock that's been amazing, McDonald's , Microsoft and Starbucks reporting. Cramer said he prefers Wendy's over McDonald's but likes Microsoft on the possibility of a new CEO from outside the company, and Starbucks for the long term. Finally, on Friday, it's Bristol-Myers Squibb , Stanley Black & Decker , Honeywell and Kimberly-Clark reporting. Cramer is a fan of Bristol, Honeywell and Kimberly but suggested using call options as a way to test the waters with Stanley Black & Decker, a company that couldn't possibly have as bad a quarter as it did last quarter. Executive Decision: Strauss Zelnick For his "Executive Decision" segment, Cramer sat down with Strauss Zelnick, chairman and CEO of Take-Two Interactive , the $1.5 billion video game maker with such titles as Grand Theft Auto, Bioshock and NBA 2K. Zelnick said he's not overly worried about Take-Two's share price because the company has already bought $280 million worth of its own shares at what it believes to be a terrific price. "We're voting with our capital," he continued. When asked whether sales at retailer GameStop should be an indicator of how Take-Two is selling, Zelnick noted that typically 30% of sales are digitally delivered, and since GameStop typically deals in a lot of older titles it's more of a trailing indicator than a leading one. Turning to the record-setting launch of the latest Grand Theft Auto late last year, Zelnick said sales were helped by high average selling prices. But 29 million customers in six weeks proves the popularity of the franchise. Cramer said the Grand Theft Auto franchise alone is worth more than Take-Two's current stock price, not to mention all of its other terrific titles. Robot Invasion The markets are being invaded by robots, Cramer told viewers, with smart companies such as Google , an Action Alerts PLUS holding, and Amazon.com both snapping up robotics firms for their warehouses and future projects. So where does that leave iRobot , the only publicly traded pure-play robot maker? Cramer noted that iRobot shares soared 85% last year and has sold over 10 million robots in 45 countries around the globe. iRobot currently derives 90% of its sales from consumer robots, like its famous Roomba vacuum, but still maintains 10% of sales of defense and security robot systems. With new Roomba models coming, along with a promising video-conferencing robot in development with Cisco and sales beginning in China, Cramer said there are things to like about iRobot. The company has lots of patents, little competition and the best brand recognition. iRobot last reported a two-cents-a-share earnings beat on lighter than expected revenue and lower guidance, but Cramer said the company does have $5 a share in cash, which puts its multiple at a respectable 27 times earnings for a growth rate in the high-teens. While iRobot is not a revolution, Cramer concluded the company is worth buying as a speculation. Lightning Round In the Lightning Round, Cramer was bullish on Bank of America , Nordic American Tanker , Sherwin-Williams and Diana Shipping . Cramer was bearish on CapitalSource , DryShips , Allscripts Healthcare and Seaspan . Profitable Breakups Why are corporate breakups so wildly profitable? Cramer dove into the history behind Beam , which was just recently acquired by Japan's Suntory for a 20% premium, to show investors how it works. Cramer noted that while some investors lamented Beam's poor performance last year, the stock has now delivered a 92% return over the past two years since it was spun off from the old Fortune Brands, far better than the markets overall. And what of the Fortune Brands split that made it all possible? Cramer recalled that Fortune was a conglomerate that comprised cabinets, faucets, gold clubs and liquor before it announced its breakup in December 2010, when its market cap was $13 billion. After spinning off its gold business for a clean $1 billion, the remaining Fortune Brands Home Security and Beam are now worth a combined $24 billion, for a total of $25 billion, more than double that of the original entity. Looking at the stock prices, the new Fortune Brands is up 278% since the split, which, when combined with Beam's 92%, gives investors triple their money in just two years. Why do breakups work? Because Wall Street hates conglomerates and much prefers pure-play companies that are easy to analyze and sponsor, Cramer said. No Huddle Offense In his "No Huddle Offense" segment, Cramer sounded off on the negativity surrounding Twitter , a stock that still has nine analyst sell ratings but only eight buy ratings. Cramer said the skepticism surrounding Twitter is unheard of, which is why a lone upgrade today was so refreshing. In that report, the analyst noted that Twitter's opportunity and potential far exceeds traditional metrics, a sentiment Cramer has shared for quite some time. He called Twitter the most disruptive of all the social media plays as well as one that ties in great with television, something advertisers can get behind. The good news is that with so many "sells" on the stock, there's still plenty of room for upgrades because Twitter will prove the analysts wrong, one by one. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDCClick to view a price quote on DAL. Click to research the Transportation industry.
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- The analysts are trying to get you out of stocks at just the moment you should be staying in, Jim Cramer said on "Mad Money" Wednesday. Cramer said after years of being criticized for being too bullish, the analyst community now appears to be permanently skeptical. That was the case with with two Cramer faves, United Technologies and Honeywell , the latter a stock Cramer owns for his charitable trust, Action Alerts PLUS. He said both stocks received downgrades today, panned for, of all things, being too broadly loved on Wall Street. This came at a time when both companies are offering investors growth, dividends and stock buybacks. Wendy's also received a downgrade today despite only being a fraction of the way into its turnaround efforts, which are bringing new restaurants and a new menu to its stores. Why sell now? asked Cramer. The banks is another sector coming under fire by the analysts, Cramer noted, just as bad loans are winding down and the net interest margins are ramping higher. KeyCorp and U.S. Bancorp , two more Action Alerts PLUS names, also got tagged with unwarranted downgrades. Even Twitter has not been immune to the analysts' new-found pessimism, Cramer concluded. Executive Decision: Charif Souki For his "Executive Decision" segment, Cramer sat down Charif Souki, chairman, president and CEO of Cheniere Energy , the company building two export terminals to take advantage of America's growing abundance of natural gas. Souki said Cheniere is now giving investors multiple ways to invest -- with the original Cheniere shears, trading under the ticker LNG, along with Cheniere Energy Partners , a master limiter partnership for retail investors, and Cheniere Energy Partners Holdings , which is geared for institutional investors. When asked whether the demand for natural gas is slowing, Souki said there is an unlimited number of potential customers for Cheneire as long as there's such a large price differential between gas and oil. Our country still burns off more excess oil through flaring than it uses, Souki noted. When will America wake up and embrace its own natural resource? Souki said the markets are moving in that direction and it's better to let them progress naturally rather than force a change through legislation. Finally, when asked about competition, Souki said that no one but Cheniere has broken ground on an export terminal, giving his company a huge first-mover advantage. Cramer continued his recommendation of Cheniere. Yelp for Joy Not many companies can deliver what the customer wants and what Wall Street wants at the same time, which is why ratings Web site Yelp has been on fire since its initial public offering. Cramer said Yelp is the real thing, one of the few companies that has the trifecta of social, mobile and the cloud and is making money hand over fist in all three areas. Remember the Yellow Pages, that thick book that was delivered to your front door every year by the phone company? If you had any hopes of running a successful local business, you had to advertise in the Yellow Pages. The Yellow Pages of today is Yelp, plain and simple, said Cramer. Unlike the Yellow Pages, Yelp is not regulated by the government, meaning it can continue to grow like wildfire. Cramer said Yelp's business is worth "substantially and dramatically" more than it is today, even with shares up 8% in today's trading. Lightning Round In the Lightning Round, Cramer was bullish on BB&T Bank , Franks International , BioMarin , Genuine Parts , Snap-on , Core Labs and Exact Sciences . Cramer was bearish on Michael Kors , MannKind and Universal Display . Curb Your Skepticism As 2014 gets rolling, Cramer told viewers they need to check their emotions at the door and not become too skeptical, a mistake even pros like Cramer can fall victim to from time to time. Excessive skepticism is not a good thing, said Cramer, and can cost you a lot of money. That was the case when Cramer told investors to sell Walgreen last year, after the company got into a tiff with Express Scripts and started making a slew of acquisitions. After falling from $40 to the high $20s, Cramer advised selling Walgreen, a price that later proved to be the bottom; the stock nearly doubled from those levels. The former Shaw Group was another Cramer pan after the nuclear disaster in Japan. Cramer figured that Shaw, which built nuclear plants, would surely falter. While shares did sink 10% from his sell recommendation, the company was acquired by Chicago Bridge & Iron for a 72% premium. What's the lesson from these examples? That well-run companies with terrific CEOs deserve the benefit of the doubt and skepticism doesn't pay, Cramer concluded. Am I Diversified? In the "Am I Diversified" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets. The first portfolio included Celgene , 3M , Salesforce.com , JPMorgan Chase and Valero . Cramer said this portfolio was picture perfect. The second portfolio's top holdings included Hewlett-Packard , American Capital Agency , Johnson & Johnson , Bank of America and Facebook . Cramer said this portfolio can't have American Capital and Bank of America and advised selling American Capital in favor of an industrial like Honeywell. The third portfolio had Verizon , AT&T , Exxon-Mobil , PDL BioPharma and Altria as its top five stocks. Cramer said this portfolio can't have both AT&T and Verizon and needs a stock like Clorox . To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDCClick to view a price quote on UTX. Click to research the Industrial industry.
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- It's time to stop fretting over the Federal Reserve, Jim Cramer said on "Mad Money" Tuesday. The CEOs of our great American companies aren't worried and you shouldn't be either. We received great news from no less than four great companies today: Boeing , Honeywell , 3M and Whole Foods Markets , but this news was not enough to buoy the overall markets as they chose instead to focus only on the looming Fed announcement. But make no mistake, the CEOs of Boeing, Honeywell, 3M and Whole Foods aren't glued to their seats waiting on the Fed. They're too busy making money for their shareholders. Cramer said there's a cohort of investment wisdom that says the only smart way to make money is to invest in index funds. Why take the risk on individual stocks when you can invest in the overall market and take on less risk to make a little less money, they argue. But this method is lazy, said Cramer, and ignores that fact that some companies have excellent management with terrific long-term themes that will trounce the averages every time. Boeing is benefiting from the need for more fuel-efficient planes while 3M is pursuing relentless innovation. Honeywell is also innovating with new products for autos, planes and refiners while Whole Foods is dominating the healthy and organic food movement. It's these long-term trends, coupled with flawless execution by management, that has allowed these companies to over-perform the averages this year, said Cramer. None of them were overly hard to spot. Cramer said investors shouldn't get overwhelmed by the market worries and the Fed-speak and most certainly shouldn't sell their stocks for other asset classes. Do a little work, ignore the naysayers and use the market weakness to pick up some of these great stocks at a discount. More Stocking Stuffers For the second installment of his "Stocking Stuffers" series, Cramer added a tech stock and a bank to his "nice list" with Google and Bank of America , two stocks he owns for his charitable trust, Action Alerts PLUS. Google is the safer, less expensive way to play the surge towards everything social, mobile and the cloud, said Cramer, and there's no denying that Google is the king of online and mobile advertising. And with that ad spending on the rise, it's no wonder Google's gross profits were up 18% in its most recent quarter. Google also has over $53 billion, or $167 a share, in cash on its books for acquisitions and other exciting growth opportunities. Yet, for all its positives, shares trade for just 20 times earnings despite a 16% growth rate. Cramer compared that to Facebook , which trades at 48 times earnings with only a 30% growth rate. Then there's Bank of America, the bank that's slowly emerging from its legal woes and is most certainly a better stock now than it was just a few years ago. Cramer said the banks are one of the few sectors that benefits big from rising interest rates. With exposure to consumer and commercial lending as well as construction spending and wealth management, there's a lot to like with this stock that trades at just 1.1 times its tangible book value. As a comparison, Wells Fargo trades at 1.9 times its book value. Either of these stocks will look great under the tree this year and will be a gift that keeps giving for years to come, said Cramer,. Executive Decision: John Mackey and Walter Robb For his "Executive Decision" segment, Cramer went on location in Brooklyn, N.Y., and sat down with John Mackey and Walter Robb, co-CEOs of Whole Foods, a stock that's up a staggering 1,000% over the past five years. Whole Foods currently has 347 locations in the U.S. There are still a lot of exciting opportunities ahead for Whole Foods, the CEOs said, both in existing markets and in new ones. They touted their new Brooklyn location as one such opportunity, transforming an entire community with a store that includes a 20,000-square-foot greenhouse on its roof. When asked about the location -- 3rd Street and 3rd Avenue in the Gowanus neighborhood -- the CEOs noted that Brooklyn is a dynamic and evolving area and Whole Foods brings a new energy to that particular community. They noted that while the store itself generates over 450 jobs, with nearly two-thirds of those filled by local residents, over the next decade the area surrounding the store will also likely see a significant transformation for the better. Whole Foods is all about working with quality people that produce quality products, said the duo, which is why the company pays well above the minimum wage and has a significantly lower employee turnover. There's a misconception that if employees win other stakeholders must lose, but that's simply not the case, they said. By treating employees well, all stakeholders reap the rewards. More on Whole Foods Continuing his interview with John Mackey and Walter Robb, Cramer asked about the connection between healthy eating and a healthy lifestyle. With nearly 69% of all Americans now overweight, there's a revolution afoot, towards not only eating better but also living better, said the CEOs. A big part of our country's health care crisis is the fact that most of us are not healthy. Turning to the issue of growth, Whole Foods recently revised its plans, announcing its intention to open 1,200 locations in the U.S., up from previous plans for just 1,000 locations. That's a sign the market is continuing to grow, the CEOs noted, a trend that bodes well for Whole Foods.Is Whole Foods afraid of increased competition? Not according to Mackey and Robb. They said other stores just don't have the standards nor the culture that Whole Foods possess and the more places that aim to copy their model, the quicker they will innovate and evolve to stay one step ahead. Their Brooklyn greenhouse atop the store is one such example, they said. Finally, when about the state of capitalism in America, Mackey noted that America seems to be moving away from capitalism and is losing its economic freedoms. He said that big business is often vilified and people just don't trust businesses. Capitalism has a lot of positive things to say, Mackey said, but that story is rarely told. Lightning Round In the Lightning Round, Cramer was bullish on Valero Energy , Hawaiian Electric , Veeva Systems , Emerson Electric and Lockheed Martin . Cramer was bearish on General Dynamics . No Huddle Offense In his "No Huddle Offense" segment, Cramer opined on whether the selling in stocks such as Kimberly-Clark , General Mills and Clorox is just a phase or the real deal. Cramer said these cyclical stocks have been in a world of pain of late, slowly and steadily declining as the expectations of higher interest rates abound. But while these stocks may be terrible trades at the moment, they're still terrific investments, Cramer said. These are long-term stocks, he reminded viewers, and not ones that should be traded over the short term. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDCClick to view a price quote on BA. 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NEW YORK (TheStreet) -- When Washington is away, the bulls do indeed play, Jim Cramer said on "Mad Money" Tuesday after another up day on Wall Street.
Cramer said with interest rates once again determining stock prices -- this time for the better -- there are a whole host of stocks moving to the upside. ...Click to view a price quote on K. Click to research the Food & Beverage industry.
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NEW YORK (TheStreet) -- Are there bargains still to be had in this red-hot market? Jim Cramer asked his "Mad Money" viewers Monday.
He said there is one stock that's not up for the year, one that yields 2.3% and trades at just 12 times earnings despite a remarkable growth rate. That's the stock of Apple , a stock Cramer owns for his charitable trust, Action Alerts PLUS. ...Click to view a price quote on AAPL. Click to research the Consumer Durables industry.