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Jim Cramer's 'Mad Money' Recap: 'Hit and Run' Investors Are the Worst

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NEW YORK (TheStreet) -- Where did all of the sellers from yesterday go? That was the question Jim Cramer posited to his Mad Money viewers Wednesday after the markets mounted a strong reversal from yesterday's big selloff.

Apparently, yesterday's sellers were of the "hit and run" variety, Cramer concluded -- investors who buy stocks they know nothing about only to sell, sell, sell at the first whiff of trouble.

Must Read: 5 Stocks Warren Buffett Is Selling

There were still plenty of reasons the market could've continued lower today, including Workday (WDAY), which reported a disappointing quarter that resulted from actual competition. Surprisingly, Workday's weakness did not spill over in other high multiple stocks, as it typically would.

Then there's the sad saga of Michael Kors (KORS), the former Wall Street darling that forecast double-digit declines in same store sales, news that sent shares lower by 24%. Here again, only Fossil (FOSL) followed suit, with other high end retailers like Tiffany (TIF) ending up 10.5%.

Finally, there was the continued collapse of Shake Shack (SHAK), down 14%, as investors continue to realize this stock's stratospheric prices may have only resulted from the massive short squeeze Cramer outlined yesterday (LINK).

But despite all of these shortfalls, the markets surged higher, prompting Cramer to remind viewers that they must use selloffs like yesterday to get the prices they want for the stocks they need. Don't buy into the panic, only buy stocks you understand and are willing to hold onto for the long term.

Executive Decision: Jeffrey Ettinger

For his "Executive Decision" segment, Cramer sat down with Jeffrey Ettinger, chairman and CEO of Hormel Foods (HRL - Get Report), the food company most famous for Spam and Skippy peanut butter, which recently announced the $775 million purchase of Applegate Farms, an all-natural and organic food maker.

Ettinger said the shift to organic foods is not a fad, it's a movement, and organic items are the most exciting area of the grocery store at the moment.

Hormel has no plans to make changes at Applegate, and Ettinger noted the company will be a standalone division within Hormel. The company plans to honor the brand and and all its commitments to organic methods and fair treatment of animals.

Ettinger said he still sees a place for organic and non-organic item, however, noting that Spam continues to grow as his company introduces variations of the product. He said the Jennie-O brand also remains terrific.

Must Read: George Soros' Top 5 Dividend Stock Picks for 2015

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