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NEW YORK (
) -- This quarter's earnings season has been difficult to navigate, Jim Cramer told
viewers Wednesday, but that doesn't mean there aren't winners out there.
Cramer said all the companies that have been bucking the trend of disappointments have one thing in common -- great execution.
Case in point,
, a stock Cramer sadly owns for his charitable trust,
Action Alerts PLUS. Cramer said DuPont got hurt bad this quarter because it plays in the commodity chemical market. PPG, meanwhile, is a specialty chemical maker, developing innovative products for autos, aerospace and even sunglasses.
Then there's the case of
Buffalo Wild Wings
Chipotle Mexican Grill
. Same-store sales were disappointing at Wild Wings and Chipotle but not at Panera, which used new menu items to keep customers coming back for more, he added.
Even in the railroads, execution matters, said Cramer. That's why
is up 14% for the year while rival
quarter came off the rails.
The trend is also evident in the industrials, noted Cramer, with
making strides with new products, while rival
painted an uncertain picture for investors.
Cramer said the markets clearly aren't all bad, if investors know where to look.
In the "Executive Decision" segment, Cramer sat down with Martin Franklin, executive chairman at
, a company that just delivered an earnings beat of 4 cents a share and a stock that's more than doubled since Cramer first recommended it in November 2009.
Franklin said Jarden is all about innovation, which is why his company makes a $1 million brand investment into itself each and every day. Whether it's developing new products, replacing older ones or promoting the products they have, Franklin said innovation will always be key to having a great company.
One such innovation Franklin debuted was a small and stylish smoke detector. He said it turns out smoke detectors don't have to be white, nor do they have to be so large or so boring. Other areas of innovation include the company's Rawlings sports equipment brand, which has invested heavily in a new football helmet design that debuted recently.
Jarden also has a commanding lead in the outdoor equipment market and is, in fact, the world's largest supplier of such equipment. Franklin said whether it's lanterns, snowboards, tents or sleeping bags, Jarden probably has a new, innovative product to show you.
Among Jarden's other accomplishments is its share price. The company recently performed a $500 million Dutch tender offer for its own shares. Franklin explained that during times when Jarden can't find a new brand to invest in, it is choosing to invest in itself by buying back shares to reward shareholders. Yet, despite the company's bold move, shares still trade at a paltry 11 times earnings.
Cramer continued his recommendation on Jarden.
Was the 20% jump higher in
justified? It was, according to Cramer, and the company may just be getting started after what remains the worst initial public offering in the history of the stock market.
Facebook not only had a terrific quarter but also a great conference call, one where it gave analysts and investors the answers they've been seeking for months. Facebook proved that its mobile strategy is in full swing now that its service is tightly integrated into the iPhone. A full 70% of users are now using Facebook on mobile devices and advertisers apparently love it. Facebook is now turning its attention to
Facebook also indicated that the problems with
did not spill over into the overall gaming sector, which was the fear of many investors. Zynga now represents just 7% of Facebook sales, down from 12%.
Cramer said the strength in Facebook's quarter may be strong enough to overpower the share lockup expirations coming due soon, and he would be a buyer on weakness.
In the Lightning Round, Cramer was bullish on
American Capital Agency
Cramer was bearish on
In the Pipeline
In his second "Executive Decision" segment, Cramer sat down with Dr. Francois Nader, president and CEO of
, an "orphan" drug maker that Cramer recommended on Sept 18. Shares of NPS spiked up 31% a month later on Oct. 12, at which time Cramer advised selling the stock. But he now says it may be worth investing in again as NPS has more than one new drug in its pipeline.
Nader explained that NPS looks for value in the drug market and orphan drugs provide that value because they have no competition, they cost far less to develop and there is still a true need for the products. Compare that to the $1.3 billion needed to bring a traditional blockbuster drug to market and it's easy to see why orphan drugs are far more attractive.
However, even with the orphan drug distinction, Nader noted NPS is still not going it alone. The company has major partners and licensing agreements for almost all of its drugs, helping to provide it with the cash it needs as well as a predictable profit picture in the future.
Cramer said that this drug maker is doing things right and he wants to continue to be a buyer.
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:
SPDR Gold Shares
Chipotle Mexican Grill
Cramer said that Lulu and Chipotle are both high-growth momentum stocks and this portfolio needs to replace Lulu with a drug stock like
The second portfolio's top holdings included:
Energy Transfer Partners
Bank of America
Cramer said that Conoco was too much like Energy Transfer and he would sell the latter in favor of
The third portfolio had:
American Capital Agency
Energy Transfer Partners
as its top five stocks.
Cramer said that this portfolio was terrific.
-- Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, DD, ETP and GE.
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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