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RealMoney Radio: Snow Job

"I get to talk with many CEOs, and while sometimes I know when they are snowing me, sometimes I take them at face value," Jim Cramer said on his "RealMoney" radio show Thursday.

By talking to CEOs, Cramer said he is trying to gauge how a company is really doing.

A couple of months ago, Frank Baldino, the CEO at Cephalon (CEPH), came onto Cramer's "Mad Money" TV show and insisted that its drug Sparlon would get a thumbs-up from the Food and Drug Administration, he said.

However, the FDA not only gave it a thumbs-down, but they don't want to hear about it anymore, Cramer said. "Sparlon is dead."

If Baldino had said that he wasn't sure what would happen, then that would have been someone Cramer said he would have wanted to do business with. But now the stock is down $8, and Cramer said he doesn't want to be near it because Baldino is someone he can't trust.

Alive and Well

Although there is a notion that the American consumer is being too cautious, J.C. Penney (JCP - Get Report) reported an amazing quarter, he said. The stock is cheap, and the company is buying back stock.

If you listen to their conference call, J.C. Penney affirms that the consumer is not dead and is spending, Cramer said.

Similarly, Disney (DIS - Get Report) reported stronger-than-expected numbers in their quarter and said people are going to theme parks.

Therefore, even though gasoline is expensive, the consumer wants to go out and be entertained, Cramer said. "The consumer is alive and well."

Cramer on Demand

Every week readers of vote on the stock they most want Cramer to talk about. This week's stock was Starbucks (SBUX - Get Report), he said.

Although Starbucks' latte is one of Cramer's joys and a part of his routine, he said this is a tough one for him.

They reported a bad quarter and said it was because they offered a banana frappuccino that took too much time to prepare, he said.

When a company makes excuses about what is causing its problems and has a declining growth rate -- and when people are in a market environment where they don't want to pay $4.50 for a cup of coffee - the stock needs to be avoided until we see what happens in the next quarter, Cramer said.

To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.

Jim Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS . Listen to Cramer's RealMoney Radio show on your computer; just click here . Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here . has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from

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