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NEW YORK (
) -- The market's divided between the haves and the have-nots, Jim Cramer told
viewers Wednesday. With the distance between the two groups growing, it's only a matter of time before the have-nots become cheap enough to buy.
Cramer explained that among the companies that can do no wrong are those with declining costs in environments where they charge more. He said that drug stocks are among this group, as are consumer stocks including
Everything from the price of plastics and natural gas, to oil and gasoline to labor is falling in America, which means that all of these savings flow right to the bottom line. Even appliance maker
is seeing relief in the way of decreased competition, making it among the must-have stocks.
On the have-not side of the equation are the banks, said Cramer, a group that continues to battle lawsuits and fight the
with low interest rates. Even if a bank does post a good quarter, he said, it's quickly dismissed by investors.
Technology is also among the hated stocks, noted Cramer, with stocks like
drawing yawns from investors and, of course,
, a stock Cramer owns for his charitable trust,
Action Alerts PLUS, continuing its freefall.
Oil and oil service stocks are also in the doldrums, said Cramer, as are companies even remotely related to mining or minerals. It's as if no one uses aluminum or copper anymore, he concluded, even though that's hardly the case. That's why investors need to stick with the "haves" for the moment, as the "have-nots" have not yet hit the bottom.
Executive Decision: David Demshur
In the "Executive Decision" segment, Cramer once again checked in with David Demshur, chairman, president and CEO of
, which today delivered a seven-cent-a-share earnings beat of an 11% rise in revenue. Shares of Core Labs are up 109% since Cramer first got behind the company in February 2010 and 11% since he last spoke with Demshur this past January.
Demshur said Core Labs was able to deliver another great quarter for shareholders and is seeing strength in all of its divisions. He noted that in its production enhancement division, for example, engineers are hard at work developing technology that will breathe new life into older oil fields.
He explained that natural gas is often what drives oil to the surface, and in some fields the oil in undersaturated with gas. Thus, Core Labs is developing gas mixtures that can be injected into wells to potentially unlock some five to six billion barrels of thus unrecoverable reserves.
Demshur also noted Core Labs is an international story, with 80% of revenue coming from oil projects outside the U.S. He said that Mexico is one area that has yet to be exploited and has excellent prospects.
When asked about the possibility of other big oil and gas finds here in the U.S., Demshur stayed mum on citing where they might be, buy did say that one, possibly two, big finds larger than the Bakken and Eagle Ford shales "may" have already been discovered with drillers quietly racing to secure land at those undisclosed locations.
Finally, when asked whether North American energy independence is possible in the next three to five years, Demshur said that while five years may be a little optimistic given how things are progressing, it will certainly happen.
Cramer continued his support for Core Labs.
Executive Decision: Richard Smith
In his second "Executive Decision" segment, Cramer sat down with Richard Smith, chairman, president and CEO of
, a stock that's seen a 24% gain since the company went public in October as the housing market continues to recover.
Smith said Realogy began to see the housing recovery late last year and currently is "very bullish" on the housing market. He said the market is working through a seven-year trough and still has a long way to go to reach pre-2008 levels.
There's a time for renting and a time for owning, said Smith, and the time to own is now, with a recent survey indicating that 81% of consumers would prefer owning a home over renting one. But even with that high level of demand, banks are still only lending to those with the highest credit scores as new lending regulations have yet to be completed.
When asked about home prices, Smith confirmed that prices are indeed on the rise, and are rising rapidly in some markets. But even with the rebound, prices still lag their historical highs, meaning the recovery is still in its early stages.
Cramer said he's been a believer in Realogy since its IPO and he's still a believer today.
In the Lightning Round, Cramer was bullish on
American International Group
Taylor Morrison Home
Cramer was bearish on
SandRidge Permian Trust
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:
Chicago Bridge & Iron
Cramer said that this portfolio can't own Chicago and Occidental and he suggested selling Chicago and adding some
The second portfolio's top holdings included:
Cramer blessed this portfolio as diversified.
The third portfolio had:
Kansas City Southern
as its top five stocks.
Cramer said this portfolio was also terrifically diversified.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer sounded off against the analysts who just can't help themselves from beating up on companies about metrics that don't matter. He said these analysts continue to make noise and only detract from the great stories that management is trying to tell.
Some recent examples include
Johnson & Johnson
, along with
. While all three of these companies delivered strong quarters, all the analysts could focus on were things like "user engagement" at Yahoo! and "capital spending" at Intel.
Cramer said in the case of J&J, the company was able to defend itself against these attacks, but Yahoo! and Intel saw their stocks falter because of them, at least for the time being.
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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 positions in AAPL, CBI, COP, FB, JNJ, MRK, OXY, PF and WM.
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