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Jim Cramer's 'Mad Money' Recap: Snap Out of It and Look at the Cold, Hard Facts

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NEW YORK (TheStreet) -- You need to remove all emotion from the investing equation, Jim Cramer announced to his Mad Money viewers Thursday. Investing is about doing your homework, using key metrics and cold, hard facts to make informed decisions.

Case in point: Procter & Gamble (PG), which shed 4% today after the company announced that it's just not delivering on the metrics that matter. Cramer said in the consumer packaged good space the metric that matters is organic growth, sales that stem from genuine home-brewed innovation. On that metric, Procter delivered only 1% this quarter while rival Mondelez (MDLZ) delivered 4% growth, which is why Mondelez shares popped a quick 5%.

Then there's Facebook (FB), a stock Cramer owns for his charitable trust, Action Alerts PLUS, and one that was clobbered for a quick 1.8% today. Cramer called the sellers of Facebook "uninformed."

Must Read: Broadcast Television Is Doing Better Than You Think

Facebook could earn $3.75 a share in 2017 and is growing at 30% a year. That means that Cramer, along with most money managers, would be willing to pay twice the growth rate, or 60 times those 2017 earnings, which puts a price on Facebook at $225 a share for what today the "morons" were selling for $95 a share. That's emotion, Cramer said, not investing. Even at half that growth rate, Facebook is easily worth $112 a share.

Speaking of emotion, let's talk about Whole Foods Market (WFM), which fell by 11.6% today as same-store sales decelerated to just 1%. Rival Kroger (KR) has accelerating same-store sales of 5%. Yet, Whole Foods still trades at 19 times earnings, compared to Kroger at just 18 times earnings. "That makes no sense," Cramer concluded. Whole Foods deserved to fall, and should fall even more.

Executive Decision: David DeWalt

For his "Executive Decision" segment, Cramer spoke with David DeWalt, chairman and CEO of FireEye (FEYE - Get Report), the cybersecurity company with shares that have rallied 10% since Cramer last checked in back in May.

DeWalt said FireEye had another strong quarter with top line growth of 57% and was able to diversify its offerings both in different industries and geographies this quarter. The best is yet to come, he said.

When asked about competition from rivals like Palo Alto Networks (PANW), DeWalt explained the two companies have different offerings and really don't compete head to head. He said there's plenty of room for both companies to do well.

DeWalt also offered some clarity on FireEye's recent certification from the Department of Homeland Security. He said the certification, which FireEye was the first company to receive, offers it legal protection from breaches caused by acts of terror. DeWalt said this is important because as the cybersecurity industry grows, it needs things like cyber-insurance and strong partnerships with companies and government agencies.

Finally, DeWalt commented on FireEye's recent CFO departure by saying the outgoing CFO had more startup and growth experience, and now that FireEye is maturing it is bringing in new board members and leadership with the experience needed for this stage of the company's growth.

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SYM TRADE IT LAST %CHG
FEYE $45.04 -5.70%
PPG $108.70 0.17%
SKX $151.61 1.80%
AAPL $121.60 -0.63%
FB $95.77 0.59%

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