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NEW YORK (
) -- In retail, execution is everything, Jim Cramer said on
Tuesday. Cramer said today's retail earnings proved that when you have the right items in the right packaging and at the right price, even the most beaten-down of retailers has a fighting chance to get back up swinging.
Turnarounds happen all the time in the sports world, said Cramer, but when
got a new CEO last year, no one cared. That was until today's surprise earnings that sent shares soaring by 13%.
It was a similar story at
, whose new management team has spent the last 18 months revamping that ailing retailer, sending its stock up over 100% -- with an 8% move just today on strong 9% growth in same-store sales.
And then there's
, the retailer that just a few months ago was in a terminal tailspin. But since then, thanks to strong promotions, private-label sales and a new housewares department, the back-to-school season is strong at Penney; more importantly, the company has enough cash to make it through the holidays.
Cramer said that even with interest rates rising and home sales slowing, he still wants in at
, because he knows that management team knows how to execute. He said all of these companies offered no excuses and no alibis -- they just provided results.
Betting on Casinos
There's a battle brewing in Las Vegas among the casino operators, Cramer told viewers.
Las Vegas Sands
offered up some sharp words for rivals
, two companies Sands accuses of deeply discounting rooms to pay off their enormous debts.
But with shares of Las Vegas Sands up only 23% for the year, compared to 48% and 156% for MGM and Caesars, respectively, isn't Sands the one with the problem?
Cramer said that while Sands is now more of a China story, with over half its revenue coming from overseas, MGM and Caesars are the true Vegas high rollers. While Caesars is indeed on shaky ground and with large debts to repay, MGM has made real progress with its balance sheet and is poised to even turn a profit in 2014. The company now earns nearly $3 in casino and entertainment revenue for every $1 a guest spends on the room, Cramer noted, which makes it a wise decision to discount those rooms.
So who's right? Cramer said both sides are. He blessed owning Sands, along with
, for any investor who feels China is on the rebound, but also MGM for investors betting on a big turn in Las Vegas.
Quaffing With Cramer
For the next installment of his "Cramer's Cookout" series, Cramer set his sights on the bull market in beer. Yes, that's right -- beer shipments are up 3.8% in the most recent quarter. That's great news for the king of beers,
, along with rivals
Molson Coors Brewing
and spirits maker
Cramer said while Anheuser is the world's largest brewer, the company reported a mixed bag last quarter, with a 3.9% rise in revenue but also a 12-cents-a-share earnings miss. Despite the miss, however, shares did not plummet because Anheuser still has a lot of synergies to gain from its Corona acquisition, along with growth to be had from Europe and China as those economies recover.
Boston Beer has seen its shares soar this year, and also posted a honest beat on its last conference call. But Cramer warned shares are now fully valued at 34 times earnings with a 15% growth rate. He said it's time to ring the register. Molson Coors is also not overly attractive, said Cramer, as it offers slower growth and fewer catalysts than Anheuser.
Cramer remains a fan of Diageo, as that company derives 40% of its sales from emerging markets and another 20% from Europe, leaving this company with huge opportunities ahead.
So when it comes to beer, Cramer told viewers to stick with Anheuser-Busch, and if they're looking for something a little spicier, go with Diageo.
In the Lightning Round, Cramer was bullish on
Cramer was bearish on
Off the Charts
In the "Off The Charts" segment, Cramer went head to head with colleague Dan Fitzpatrick over the direction of markets. According to Fitzpatrick, the markets may be done rallying for the year and are likely to trade sideways until 2014.
Using a daily chart of the
, Fitzpatrick noted the average's uptrend resistance line has been acting as a ceiling since November. With every rally that ceiling was tested, until most recently.
Conversely, the S&P's 50-day moving average has served as a floor of support, also being retested with every downturn, until most recently. Since June 20, Fitzpatrick noted, the S&P not only failed to stay above its floor, but the subsequent rally also failed to retest its ceiling.
Additionally, Fitzpatrick noted the MACD is signaling a bearish crossover; the last time that happened, the S&P moved sharply lower. Combine these facts with a breakdown in the relationship with interest rates and Fitzpatrick felt the markets have huge hurdles to overcome.
Cramer said he agrees with Fitzpatrick's assessment of the state of affairs but he also feels that if any inputs change, as in interest rates going lower or China and Europe heading still higher, the markets could still stage a year-end rally.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer opined on the stocks of
, three "cult" names that he said will keep going higher as long as cult members continue to love them.
Cramer said all three of these companies' valuations make no sense whatsoever, but people just keep buying them as they're the hottest products and services around. They simply defy logic, he said -- but as long as those products and services continue to wow consumers, the sky's the limit, as the shares have already proven.
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-- Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer's Action Alerts PLUS had no position in stocks mentioned.
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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