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Cramer's 'Mad Money' Recap: Barista Set High for Starbucks

02/01/07 - 07:54 PM EST

TheStreet.com Staff

Click here for an archive of Cramer's "Mad Money" recaps.


When a company does everything right, its stock will go higher -- which is exactly what happened with Archer Daniels Midland (ADM - Cramer's Take - Stockpickr) and Boeing (BA - Cramer's Take - Stockpickr), Jim Cramer told viewers of his "Mad Money" TV show Thursday.

But when you have a great stock, "good is not good enough," he said. "To really impress the Street you need to have better-than-expected earnings."

Starbucks (SBUX - Cramer's Take - Stockpickr), for example, did a good job, but it needed to do a great job, Cramer said. But people can still own it if the stock starts to accelerate, he added.

He welcomed Howard Schultz, founder and chairman of Starbucks, onto the show and asked him if his company still has its mojo.

Schultz, who said he "couldn't speak of" what happened to the stock, said that it isn't true that Starbucks has hit a wall. "If you look at the quarter, the underlying factors were so strong," he said.

Moreover the Starbucks' card growth "demonstrates the hidden opportunity we have," Schultz continued. Plus, the company is getting ready to open in Russia and India this summer, he said.

The Street's expectation is one thing, but after having been around for years, Starbucks, is still showing growth in sales and profits, Schultz said. He added that during the quarter, the company also gave a wage increase to its workers -- "an investment in the most important asset we have."

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At the time of publication, Cramer was long Halliburton and Hewlett-Packard.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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