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NEW YORK (
) -- When fear abounds, investors need to have the guts to do nothing, Jim Cramer told his
TV show viewers Wednesday. Cramer said that if they really want to sell, they should take a deep breath and wait, but even more prudent would be to do a little buying.
Cramer explained that it's only natural to want to sell when the rest of the market is panicking. But selling into a panic is often the worst time to sell. The market will always provide you with a better price to get out, Cramer added, which is why investors should prepare before a selloff happens so they'll be ready when it does.
Cramer recalled the seven great American growth stocks he featured in April, stocks that included
(AAPL - Get Report)
, a stock which he owns for his charitable trust,
Action Alerts PLUS
, along with
(SBUX - Get Report)
Chipotle Mexican Grill
(CMG - Get Report)
(ROST - Get Report)
(AGN - Get Report)
. All of these names, he said, are the perfect stocks to revisit after this week's market pullback.
In all seven cases, Cramer said that these companies have superior growth, excellent management and long-term trends that transcend the market's short-term volatility. And while the troubles in Europe cannot be ignored completely, the smart move would be to wait for the markets to take these great names lower and scoop them up while they're on sale.
In the "Executive Decision" segment, Cramer sat down with Jim Hagedorn, chairman and CEO of
, a stock that was hammered down 16% in Tuesday's trading after the company delivered a mixed quarter with a 9-cent-a-share earnings beat on lighter-than-expected revenue. Scotts currently yields 2.55%.
Hagedorn explained his stock's precipitous decline as a case of the analysts getting way ahead of where the Scotts management forecast they would be. He said the company is meeting all of its internal expectations and is growing sales and taking share, but it simply couldn't meet the inflated expectations that the analysts had cooked up.
Hagedorn said the lawn and garden business is not for the faint of heart because when it's good, it's "awesomely good," with explosive growth in the spring and summer months. Even with the best supply chain in the business, Scotts is still stressed to its limits as warmer weather approaches, he noted. Hagedorn suggested that investors look at yearly trends and not try and chase expectations on a quarterly basis.