Segment 1: Data Dependent
Cramer said that the market is treating each piece of economic news like it is the critical data as it is released, and then it is thrown away as soon as the next piece of data is announced, which doesn't make any sense. He said that none of the data being released is very important on its own, and when you put it together it shows a mixed outlook, so there is no need to take any real action right now.
Cramer took phone calls on the following stocks:
Schlumberger (SLB): Cramer said that this is the best stock in the sector, but
Morgan Stanley (MS): Cramer said that this stock is okay to hold on to, but the caller should sell Allstate (ALL) and Discover Financial (DFS) and remember to stay diversified in the future.
Segment 2: Interview with Hain Celestial Group (HAIN) CEO Irwin Simon
Cramer is bullish on this stock as a play on healthier products, he likes the management, they just reported an earnings beat and raised guidance, and it is trading at 15 times earnings with a 12% growth rate so the stock is cheap. He talked to the CEO about the importance of nutrition, how local governments and schools are recognizing the importance of healthy foods, how the company can benefit from China's problems with their food chain by introducing safe, healthy foods there, their partnership with Martha Stewart, how they have over 1800 products in Whole Foods (WFMI) that are shopping elsewhere and looking for organic products, how one analyst determined that the stock is undervalued, and how HAIN's management is bullish on the U.S. in 2011 because of the power of the healthy eating movement.
Segment 3: Sell Block
Cramer put Intuitive Surgical (ISRG) in the Sell Block today because the stock has lost its momentum due to weakness in the medical device sector, the stock has a bearish chart that shows signs of strong institutional selling, lower highs, and selling on high volume. Cramer said that he doesn't want to fight the professional money managers, but given that the stock is cheap, the company just reported a good quarter, raised guidance, and sold 108 new surgical systems in the last quarter, he thinks that the stock is broken, not the company, and he wants to start buying again when it hits $240.
Cramer took phone calls on the following stocks:
Celgene (CELG): Cramer said he won't recommend this stock because the CFO just left, and he doesn't know why, so he doesn't want to take a chance.
Proctor & Gamble (PG): Cramer is bullish on this stock because it is a good defensive play.
Segment 4: Lightning Round!
Apple (AAPL): Cramer is bullish on this stock but said to let it pull back before buying.
Mercadolibre (MELI): Cramer is bullish on this stock as a Latin America play.
Bancolombia (CIB): Cramer said to wait until the yield is 3% before buying because it has moved up so much already.
Costco (COST): Cramer likes the company, but said to wait for the stock to pull back to $54 before buying.
Segment 5: Interview with Green Plains Renewable Energy (GPRE) CEO Todd Becker
Cramer has been bearish on ethanol producers like GPRE because he feels like they are at the mercy of corn prices, which are subsidized and go higher as ethanol demand increases, but he wanted to give an ethanol producer a chance to change his mind. He talked to the CEO about how this industry has grown up from the last ethanol boom where a lot of investors lost money, how his company makes money managing margins instead of speculating on corn prices, how the government made the right decision to increase the amount of ethanol in fuel because it is clean burning, high octane, and doesn't hurt fuel economy, and the earnings miss that the company reported was misleading because the higher estimates were made by analysts who didn't even contact the company. Cramer ended by saying that if you like ethanol, GPRE is the way to play it.
