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NEW YORK (
) -- "Happy second birthday to this bull market," Jim Cramer told the viewers of his
TV show Wednesday, as he celebrated the bull and all its glory.
Cramer said this now two-year-old bull market has created $6 trillion in wealth since its humble beginnings, and has delivered a 68% return in its first year, 16% in its second and is already up 5% so far this year. "Are you in the game?" he asked. "Or were you scared out of the markets over Italy or Greece or the mortgage mess or oil prices?"
Cramer said he's proud to have featured many great companies on "Mad Money," some of them little known, companies like
Brandywine Realty Trust
, from last night's show, and
. Cramer said all of these companies not only have great growth and great stocks, but also great dividends to boot.
Cramer said dividends are why he's fan of companies like
, with its 6.9% yield, and
Kinder Morgan Energy Partners
, with its 6.2% yield.
But Cramer said he's also a fan of diversification, which is why he's also recommended companies like
, which have gained 50% and 44% since he first recommended them.
Cramer said for all those who stayed in the game, and owned all of these stocks, job well done. He said investors to use the festive occasion to take some profits and buy something nice.
Finding the Sweet Spots
In the "Executive Decision" segment, Cramer spoke with Dave Cote, chairman and CEO of
, a stock that's trading at just 13 times earnings despite its 13% long-term growth rate and its 2.3% dividend yield.
Cote said it took a few years for Honeywell to go from a company with little forward visibility to one that could forecast its next five years, but the company has done it. He said Honeywell is "really humming," and he feels good about the entire operation.
As part of Honeywell's transformation, the company has evolved from a purely cyclical company to one that does well even in times of recession, said Cote. The company's safety and security division, along with its energy efficiency and globalization efforts are in the "sweet spot," macro trends with multiple years of growth ahead.
Asked about rising oil prices, Cote said Honeywell does best at the highest oil price that doesn't disrupt the global economy, a price which is pretty close to the one we have today. He said the world is desperate for low cost, clean power, and that's something Honeywell is helping to deliver.
One of the company's premier products is turbochargers for cars, a technology that allows an engine to be one third smaller, but still deliver 100% of the power while using 25% less gas and producing 25% less emissions. Cote said the U.S. is lagging in the adoption of turbochargers, but in Europe, nearly 50% of all cars use them.
Finally, when asked about our country's rising national debt, Cote said frankly with the tough decisions regarding our debt that are coming, the only question is whether we address them now in a responsible manner, or at the whims of the bond markets when a Greece-style crisis occurs. Cote said the U.S. debt is a matter of national security and needs to be addressed now.
Cramer continued his support for Cote and for Honeywell.
In a second "Executive Decision" segment, Cramer sat down with Steve Sadove, chairman and CEO of
, a $12 stock that's just off its
Sadove said there's been a lot of skepticism around his company over the past few years, but the worries about the company not making it are finally waning as Saks starts moving from defense to offense. He said that high-end consumers are starting to feel better about their net worth and are starting to spend again on luxury items.
Overall, Sadove said the Saks customer want value, and the company is delivering via a strategy it calls the "nine-point grid." Sadove explained that along one axis is luxury, going from good to better to best, while on the other axis is style, from traditional to contemporary. He said the key for Saks is to keep a balance between all nine boxes in this grid, so customers can always find what they're looking for.
Sadove said the company's flagship Fifth Avenue store still represents 20% of company sales, but the other 80% is coming from stores across the country, from Boston to Beverly Hills to South Florida, an area that's seeing remarkable sales growth in recent months.
Sadove also noted that Saks customers are also shopping online, and there too, the company is excelling with great customer service.
Cramer said he's a believer in the Saks story, and feels the analysts which are still skewed against the stock, can't stay that way forever.
Am I Diversified?XXXX
Cramer was bullish on
He was bearish on
The Blackstone Group
In his "No Huddle Offense" segment, Cramer answered the question: "When is it time to buy back
? Cramer said the answer may seem illusive, but the stock will determine when.
Cramer said the drop in Netflix shares today on the news that Facebook is piloting some movie streaming just shows that the markets treat any threat to Netflix' business model as credible.
That means investors must be patient, and either wait for some high- profile social media IPOs, like GroupOn, make Netflix look far too cheap, or wait for the day when potentially negative news doesn't hurt the stock.
Then, he said he'd be an aggressive buyer of the stock.
--Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer was not long any stock 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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