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People better start caring about
, Jim Cramer told viewers of his "Mad Money" TV show Wednesday.
He argued that while the company's share fells along with the financial sector, it has not rebounded in recent days, leaving it a prime buying opportunity.
Cramer cited an article is this weekend's
, which called into focus GE's exposure to the financial sector.
Cramer, though, said GE is not just a financial. Unlike the financials, GE, with many other businesses, actually made money this quarter, beating Wall Street's expectations, he said.
Furthermore, Cramer noted that the company has plans to sell of its under-performing consumer and industrial segment. The remaining segments, such as its infrastructure division, should all perform well in the coming year.
Cramer said infrastructure companies like
, are up 36%, 24% and 15% respectively year over year, while GE is down 28% over the same period.
Cramer said he also liked GE's wind power business and sees its healthcare segments as an additional driver of growth for the company. He also noted the company's international exposure, which accounts for 50% of the company's sales, and 20% of its sales in emerging markets are further positives for the stock. Cramer also likes the company's 4.5% dividend yield.
But perhaps GE's strongest case, said Cramer, is its recent plans to partner with Abu Dhabi's Mubadala sovereign wealth fund. "The deal can be looked at as almost a second stock buyback program," said Cramer, who noted that the fund's 10% stake in GE could be worth as much as $3.4 billion worth of stock.
Cramer: Still Shopping at Costco
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Bottom line: Cramer said there is an incredible opportunity here for investors to buy GE now, after it has been taken down with financial stocks and hasn't rallied back.
"Happier days could be here again," Cramer told viewers. He pondered what would happen if gas and grain prices fell and home price depreciation finally stopped.
, a stock which fell more than $2 a share today after reporting better than expected earnings, is a good example of a company that would benefit from that scenario.
"I think Panera has the ability to be the next big thing," said Cramer. Panera, he said, is increasing service, is cutting labor costs, has expanded margins and is offering a healthy menu. He talked with Panera's co-founder, chairman and CEO, Ron Shaich, to find out how all of this was possible in such a difficult environment.
Shaich said he sees a positive things in Panera's future and doesn't extrapolate anything from weakness in the last three weeks of the quarter. He said that lower gas and grain prices are both positives for Panera. He also said that by focusing on the business, the company has been able to decease wait times while increasing gross margins.
Shaich said the company sees a lot of growth to come as it carries out its strategy of becoming an alternative to traditional restaurants.
Am I Diversified?
Cramer spoke with callers to see if their portfolios have what it takes. The first caller's portfolio included
Cramer called this batch of stocks truly a great portfolio. He noted that he owns both Altria and McDonalds for his charitable trust
Action Alerts PLUS.
The second caller's top holdings included
Johnson & Johnson
Cramer noted that Bristol Meyers and Johnson & Johnson are too similar. He recommended trading Bristol in favor of an oil or financial company.
The third caller had
as their top five stocks.
Cramer said he'd sell GrafTech in favor of an industrial company like General Electric.
In this segment, Cramer told a viewer that while he now believes the merger between
( XMSR) will get done, with the additional financing needed, he's not a fan of the common stock. He recommended Sirius as a speculative stock only.
Cramer told a second viewer he's a buyer of
( XTO) given its recent retreat.
Cramer was bullish on
Research In Motion
He was bearish on
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At the time of publication, Cramer was long on Altria and McDonald's.
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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