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NEW YORK (
) -- "Execution matters," Jim Cramer told his
TV show viewers Wednesday, as he praised a long list of companies that have risen above all others.
He said these companies have risen above the woes of Europe and China, the fickle consumer and Washington gridlock. He said they all deserve their spots on the new highs list.
Cramer said that great executioners can be found everywhere, from companies like
in filtration to
Advance Auto Parts
in the auto parts market. He said that
is hitting it out of the park helping consumers save money, while
is leading the pack helping consumers care for their pets.
Cramer praised eateries like
, a company that span both technology and finance, two sectors that money managers love.
He said that
still gets the healthily foods seal of approval, while
is still best in show in high-tech footwear and apparel.
In technology, Cramer said that
, a stock which he owns for his charitable trust,
Action Alerts PLUS, tops the list of most-admired, as that company is part technology, part entertainment combined with a whole lot of innovation.
The list goes on and on, said Cramer, from
in finance to others in health care and a host of other industries. He said that these companies have risen above all that ails their rivals and should be praised for their near-flawless execution, a theme that's become the essence of what 2012 is all about.
Playing the Chip Space
Investors looking for ways to play in the beaten-down semiconductor sector should look no further that
, Cramer told viewers. He said this Action Alerts PLUS holding is cheap on just about every metric out there and has a great story to tell.
Cramer explained that the semiconductor stocks have gone from worst to first in 2012 and he's willing to call the bottom for this left-for-dead sector. But that doesn't mean that investors should pick up just any semiconductor stock, he said, as some represent broken companies while others are just broken stocks.
, a favorite among investors. Cramer said that Qualcomm is just off its 52-week high, so it doesn't qualify as a bargain. At the other end of the spectrum is a stock like
, a stock that's down big, but for good reason. Micron, said Cramer, may never return to its former glory and therefore should only be seen as a trade and not an investment.
But then there's Broadcom, which was down 33% in 2011, but also has that just raised guidance and offered an upbeat outlook. Cramer said that Broadcom predicts there will be 15 billion connected devices in the world by 2015, something that would be astounding for the chipmaker and brings multiple forms of connectivity into a single chip design.
Cramer said that Broadcom chips are in everything from Apple's iPhone to the
Kindle Fire, and with those devices on a tear, shares of Broadcom shouldn't be just off its lows and 14 points off its highs.
Shares of Broadcom are insanely cheap, said Cramer, trading at just 11.7 times earnings when historically the company has had a multiple of 40 times earnings. Broadcom also has a 15% growth rate yet it still trades at a discount to rival Qualcomm.
A Value Auto-Parts Play
For today's installment of his "Tune-up Stocks" series, Cramer featured
, a maker of drivetrain and truck parts that's been chronically undervalued by the markets.
Cramer said that Dana is a restructuring story, as the company reemerged from bankruptcy in February of 2008. Since then, Dana has gotten new management, diversified into new products and has gotten a new leaner meaner balance sheet to boot.
With auto and truck sales in the U.S. picking up steam, Cramer said it's only logical that Dana would issue strong guidance at last week's auto show. He said that unlike many parts makers, which have a 40% exposure to slumping sales in Europe, Dana is different with only a 26% exposure to the ailing continent. Dana is also expanding into emerging markets like South America and China.
New products are also helping Dana's bottom line, said Cramer, as it's expanding into higher-margin, high tech parts such as battery cooling systems for hybrid vehicles.
Shares of Dana trade at 7.6 times earnings despite the company's 26% growth rate. Cramer said with Dana's aggressive cost-cutting initiates, the company's break-even point is far lower than it once was, meaning that as auto sales continue to grow, those increased parts sales will flow right to the company's bottom line.
Am I Diversified?
Cramer spoke with callers to see if their portfolios have what it takes for today's markets. The first caller's portfolio included
Cramer said this was one great portfolio.
The second caller's top holdings included
Energy Transfer Partners
Cramer said this portfolio was "perfect."
The third caller had
Old National Bank
as their top five stocks.
Cramer also blessed this portfolio as properly diversified.
Cramer was bullish on
Cramer was bearish on
In his "No Huddle Offense" segment, Cramer opined on the better-than- expected quarter from
and the subsequent boost in its share price.
Cramer said today investors got to see Goldman at its absolute worst, but guess what, the company still made money. He said that revenues were light and earnings were not great, but Goldman's earnings were still better than expectede and that makes the company worth more today than it was yesterday.
Cramer noted that Goldman is still 14% below its book value of $119 a share, and after today's earnings, that book value may actually mean something. He said that
, an Action Alerts PLUS name, and
remain his top two financial stocks, but after today, Goldman may become his number three pick.
--Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer was long Apple, Broadcom, US Bancorp.
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.