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TheStreet Open House

Jim Cramer's 'Mad Money' Recap: Stocks That Stand the Test of Time

Stock quotes in this article: TSLA, NFLX, TNET, COST, SD, TOL, SDRL, ESV, TRQ, CRL, VALE, WLT, CLNE, DIS, SBUX, CAG, K, KRFT, BGS, DIS, OPEN, PCLN, Z, COH, KORS, KATE, STI, WFC, KEY, ETN, BEAV, HON

Down the Grocery Aisles

Continuing on his consolidation theme, Cramer took a stroll down the supermarket aisles to discuss the consumer packaged-food stocks. He said the packaged food companies used to be the poster children for consistent and stable growth with terrific dividend yields, but no more. Now there are simply too many companies fighting for too little aisle space and none of them seem to be keeping pace with America's changing diets.

Cramer noted that in conference call after conference call, the food companies blamed "promotional ineffectiveness" and "increased competition" for missing their estimates. Even B&G Foods (BGS), posted a 6-cents-a-share miss due to the increased promotions needed to meet its revenue targets.

ConAgra (CAG) is another food stock seemingly in a perpetual turnaround. The company continues to struggle to gain any momentum, Cramer said, and Americans just aren't finding ConAgra's processed and frozen foods all that tasty anymore.

Kellogg (K) sees weakness in its cereal and snack business, while Kraft Foods (KRFT) is seeing its shares only kept afloat by its 3.5% dividend yield.

Cramer said this industry desperately needs more consolidation before it becomes investable again.

Executive Decision: Burton Goldfield

For his "Executive Decision" segment, Cramer sat down with Burton Goldfield, president and CEO of TriNet Group (TNET), the employee benefit manager that's seen its shares surge 30% since Cramer last checked in on May 13.

Goldfield explained that TriNet helps companies navigate the increasing complexity of hiring and having employees. He said each state has its own requirements for taxes, payroll and health care and there are plenty of places a company could go wrong trying to go it alone.

When asked about the key metric to watch for TriNet, Goldfield said it's worksite employees, which is the total number of employees on the payroll at TriNet's 9,000 member companies. He said that number is currently over 250,000.

Read More: Warren Buffett's Portfolio Proves He's a Dividend Growth Investor

Cramer said that in today's increasingly complex world, companies need services like TriNet, which is why he continues to recommend the stock.

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