Cramer said utility mergers have an excellent track record of making money for their shareholders and he expects Duke Energy to also deliver. That's why with shares down 4.6% since the merger and surprise CEO switch last week, the time to buy shares of Duke energy is now.
"Never take your cue from the weakest player in the industry," Cramer reminded viewers as he compared the fates of Mako Surgical (MAKO) and Intuitive Surgical (ISRG - Get Report) in a battle of the surgical robot makers.
On Monday, Mako surprised investors by cutting its full-year forecasts, a move that sent shares plummeting 43%. In classic collateral damage fashion, shares of rival Intuitive Surgical also fell 20 points on the news despite the fact that Mako's problems have absolutely nothing to do with Intuitive Surgical.
Cramer said it was easy to see Mako's problems coming after the company reported terrible earnings on May 7, a 28 cent-a-share loss versus the 20-cent-a-share loss Wall Street was expecting. Those earrings gave Mako a 36% haircut at the time and prompted Cramer to put the stock in the penalty box on May 27.Cramer said that growth stocks like Mako are just like sharks -- they can't stop moving or they're dead in the water. Mako couldn't afford to miss on earnings, he said, but it did. Despite this huge red flag, many analysts still took a chance on Mako and recommended the stock, only to get blown out of the water Thursday. But what of Intuitive Surgical? Intuitive Surgical actually reported a strong quarter, noted Cramer, and the company has a proven track record and a huge base of installed customers from which to derive residual revenues. Trading at just 28 times earnings with a 21% growth rate, Cramer said the story at Intuitive Surgical remains intact.