That strategy, panned at the time, appears to be working, said Cramer. Paid subscribers were up 13% quarter over quarter, allowing the Times to make more money from paid circulation than it did from advertising for the first time in its history.
In addition, Cramer said the Times has been selling non-core assets, including About.com and most recently the Boston Globe, allowing it to focus on its core business -- producing quality content and charging people for it. Cramer said with this new focus, the Times may now be in a position to sell itself, something that would have never happened with so many ancillary businesses.
So for the first time ever on "Mad Money," Cramer said he's bullish on the New York Times.
Coke or Pepsi?
It's the age old question: Coca-Cola (KO) or Pepsico (PEP)? Cramer said when it comes to the beverage, that's up to the individual. But when it comes to the stocks, there's only one clear winner and that's Pepsico.Cramer said on the surface the stocks of Coke and Pepsi may seem similar. Pepsi sells at 15.7 times earnings while Coke trades a little higher at 16.2 times earnings. But when comparing the companies since the beginning of the year, shares of Coke are only up 4% while Pepsi has soared by 10%. Pepsi is ready to compete, said Cramer, delivering a three-cent-a-share earnings beat on 5% organic revenue growth. Meanwhile, Coke delivered a much weaker quarter. Coke also has 100% exposure to soft drinks, while Pepsi only derives 40% of sales from drinks and the other 60% from snacks. This is important, Cramer reminded viewers, as soft drinks have increasingly come under scrutiny by a more health-conscience consumer. Pepsi is also the whole package, said Cramer, with plenty of new products and a strong international footprint including a joint venture in China. He said the stock of Pepsico may be volatile, so he'd start a position at current levels and buy more on weakness.
Lightning RoundIn the Lightning Round, Cramer was bullish on American Capital Agency (AGNC), Annaly Capital (NLY), Heckmann (HEK), BlackRock (BLK), Dole Food (DOLE), ConAgra Foods (CAG) and Hormel Foods (HRL). Cramer was bearish on Ford Motor (F).
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