Segment 1: Opportunity Knocks
Cramer talked about the strength in the dollar and drop in oil and gold prices today, and said that you should still be willing to invest in quality American companies with good leadership because they will find a way to take advantage of the changing environment instead of blaming it for their poor results. He wants to buy good companies like Macy’s (M) and Walt Disney (DIS) at a discount on down days like today, instead of complaining about the weakness in the market.
Segment 2: Off the Charts
Cramer said that Federal Express (FEDX) raised estimates for the quarter it is going to report on December 17, so he looked at the chart of the Dow Jones Transport Index to underscore the importance of that index as a barometer for the entire economy. The larger indexes follow the trends of the transports, so it can be used as a leading indicator. Right now, the index is showing that the markets can still go higher because they are not signaling a top, and he thinks their recent high as the market pulls back is a good sign. Cramer said that he would like to buy UPS (UPS) on this news because it has underperformed FEDX this year, and he thinks it will catch up because of its more efficient infrastructure. He said that it is lagging now because FEDX has a better Asian business, but UPS will catch up in that area. Also, he likes the 3.1% yield from UPS. He said that he already owns UPS for his charitable trust.
Segment 3: Interview with Walt Disney (DIS) CEO Bob Iger
Cramer said that this company is rebounding along with the U.S. economy because consumers are coming back, and ad rates are improving. The company reported a great quarter on November 12, and Cramer wanted to find out if the company can keep things going. Here is a summary of the interview.
1. Cramer asked if we are better off than last year, and the CEO said that we are because advertising is improving, which is usually a good sign that spending will follow.
2. Cramer asked about his participation in Obama’s jobs summit, and the CEO said that he focused on the need to lower America’s corporate tax rate to make the U.S. more competitive in international business, the importance of IP protection to keep jobs in the U.S., and increasing tourism.
3. Cramer asked if the company will be hiring in the next year, and the CEO said that they are expanding their theme parks and studio space in several locations
4. Cramer asked if their lagging theme park attendance is due to higher price and lower value, and the CEO said that they are actually more affordable than they have been in the past because they lowered their hotel rates and offered discounts, and that they deliver great value to their guests.
5. Cramer asked if commodity prices impact the company at all, and the CEO said that even though oil prices can have a minor impact on their business, he doesn’t worry about them because the company is about innovation and creativity
6. Cramer asked about their acquisition of Marvel (MVL) and the CEO said that they have a lot of great characters, good IP, and a lot of talented people.
7. Cramer asked about the impact that the Comcast (CMCSA) NBC Universal merger will have on the industry, and the CEO said that he is glad that they didn’t sell out to Comcast, that Disney has never felt like they needed to own the distribution channel for their content, and that consumers will continue to demand their products, so that gives them leverage when negotiating with distributors.
8. Cramer asked about the value of national advertising, and the CEO said that there is no other way to reach consumers with the same impact as an ad campaign on national TV.
9. Cramer asked about the strength of their brands and why they aren’t seen as a secular growth stock instead of a cyclical growth stock, and the CEO said that they are able to create great brands because they have great people and they know how to manage them.
10. Cramer asked about the disappointing results from the movie division, and the CEO said that the business is changing because there is more risk, more competition, and is less able to support expensive productions.
11. Cramer said that one of the things he likes about the company is that they don’t need to pay high prices for stars to make shows or movies to be profitable, and the CEO said that they value their talent.
12. Cramer asked about their plans for digital content, and the CEO said that mobile content is growing, and they plan to make money from products on TV, computers, and mobile devices.
Cramer ended by saying that he likes the stock.
Segment 4: Lightning Round!
Citigroup (C): Cramer said “Don’t buy” because it has so many problems with government control of the bank.
Chesapeake Energy (CHK): Cramer said that he likes Devon Energy (DVN) better.
Palm (PALM): Cramer said “Don’t buy” and recommended Apple (AAPL) instead.
Western Digital (WDC): Cramer said to buy Intel (INTC) instead.
Segment 5: Mad Money Mail
Wal-Mart (WMT): Cramer likes Costco (COST) better because it is cheaper and has more growth.
