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NEW YORK (
) -- When fear abounds, investors need to have the guts to do nothing, Jim Cramer told his
TV show viewers Wednesday. Cramer said that if they really want to sell, they should take a deep breath and wait, but even more prudent would be to do a little buying.
Cramer explained that it's only natural to want to sell when the rest of the market is panicking. But selling into a panic is often the worst time to sell. The market will always provide you with a better price to get out, Cramer added, which is why investors should prepare before a selloff happens so they'll be ready when it does.
Cramer recalled the seven great American growth stocks he featured in April, stocks that included
, a stock which he owns for his charitable trust,
Action Alerts PLUS, along with
Chipotle Mexican Grill
. All of these names, he said, are the perfect stocks to revisit after this week's market pullback.
In all seven cases, Cramer said that these companies have superior growth, excellent management and long-term trends that transcend the market's short-term volatility. And while the troubles in Europe cannot be ignored completely, the smart move would be to wait for the markets to take these great names lower and scoop them up while they're on sale.
In the "Executive Decision" segment, Cramer sat down with Jim Hagedorn, chairman and CEO of
, a stock that was hammered down 16% in Tuesday's trading after the company delivered a mixed quarter with a 9-cent-a-share earnings beat on lighter-than-expected revenue. Scotts currently yields 2.55%.
Hagedorn explained his stock's precipitous decline as a case of the analysts getting way ahead of where the Scotts management forecast they would be. He said the company is meeting all of its internal expectations and is growing sales and taking share, but it simply couldn't meet the inflated expectations that the analysts had cooked up.
Hagedorn said the lawn and garden business is not for the faint of heart because when it's good, it's "awesomely good," with explosive growth in the spring and summer months. Even with the best supply chain in the business, Scotts is still stressed to its limits as warmer weather approaches, he noted. Hagedorn suggested that investors look at yearly trends and not try and chase expectations on a quarterly basis.
Turning to those longer-term trends, Hagedorn said that Scotts will not be raising prices this year after a string of bad weather hampered sales last year. He said the decision was made to increase advertising and hold prices this year in order to increase unit volumes and take market share, which is exactly what has been happening.
Finally, when asked about costs, Hagedorn said that costs are indeed rising, but Scotts has hedged its costs, in many cases. He said the company plans to adjust pricing next year to stabilize its margins.
Cramer remained bullish on Scotts after what was undoubtedly a strong quarter that was totally misunderstood by Wall Street.
In the second "Executive Decision" segment, Cramer once again spoke with Mark Papa, chairman and CEO of
, an oil shale driller that posted a 3-cent-a-share earnings beat on a 47% year-over-year rise in revenue and a 49% increase in oil production.
Papa explained that unlike other oil drillers, EOG is growing organically "through the drill bit" and is offering investors a higher rate of return by doing so. He called the company's Eagle Ford shale assets a one-of-a-kind opportunity and perhaps the largest oil find in North America since Prudhoe Bay in the 1960s.
When asked why EOG isn't drilling faster, given the strength of its oil fields, Papa said that technology is moving so fast that it's prudent to move at a more moderate pace and let the technology develop and provide more oil per well. He said EOG could drill all of its wells in five to six years' time, but is currently on pace to complete drilling in an 11-year timeframe instead, to maximize the oil recovered from every well.
When asked about oil and gas prices, Papa disputed the conventional wisdom that oil prices are falling and natural gas has stabilized. Papa said he sees the upside in natural gas coming in 2013, not 2012, and sees oil supplies as being more constrained than investors realize. Papa targeted oil at $105 a barrel.
Finally, when asked about America's energy policy, Papa passionately proclaimed that our country could be North American-energy independent in less than 10 years, if only we were to turn loose the technology we already have to utilize our own domestic oil and natural gas resources. He said we have the "chance of a lifetime" and the opportunity is ours to lose by not acting on it. He said all we need is leadership.
Cramer continued his support of EOG Resources.
Here's what Jim Cramer had to say about some of the stocks that callers offered up during the "Mad Money" Lightning Round Wednesday evening:
: "I have so many other good ones. I'm going to send you to
: "No, too dangerous. I think discretionary goods might be in trouble."
: "I've been staying away from these recent IPOs. I'm not going to bash it, but I'm also not going to recommend it."
: "No, no. I do not like propane and I'm not going there."
World Wrestling Entertainment
: "No. There's no growth and I need growth."
Am I Diversified
In the "Am I Diversified" segment, Cramer spoke with callers and responded to tweets sent via Twitter to
to see if investors' portfolios have what it takes for today's markets. The first portfolio included
CBL & Associates
Health Care REIT
Washington Real Estate Investment Trust
Cramer said he cannot bless this portfolio since all of the companies are real estate investment trusts, even though they operate in different sectors.
The second portfolio's top holdings included
Cramer said this portfolio cannot have two food stocks along with Altria. He recommended swapping out Diageo for a pharmaceutical company like
The third portfolio had
Capital Product Partners
Two Harbors Investment
Sandridge Permian Basin
as its top five stocks.
Cramer said this portfolio was diversified, but added that Veeco could be too speculative.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer admitted that he's become smitten with both
and AT&T after interviewing executives from both companies at the CTIA wireless conference on Tuesday.
Cramer said when it comes to secure stocks to own in 2012, both AT&T and Verizon offer growth, expanding gross margins and most importantly, no exposure to the chaos in Europe. With both companies offering monster dividend yields, it's no wonder these stocks are flirting with their 52-week highs.
--Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer's Action Alerts PLUS was long AAPL.
Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."
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Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.