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NEW YORK (
) -- "This market is hard to kill," Jim Cramer told the viewers of his
TV show Wednesday.
He said the markets have been surprisingly resilient given the prospects of a bad unemployment number coming on Friday.
What are some examples of this resilience? First, cited how
, reported disappointing July sales number, only to end the day higher. He said the same could be said for stocks like
, a stock which he owns for his charitable trust,
Action Alerts PLUS. Both companies had their scandals, but are now higher.
The same applies for other stocks as well, companies like
Johnson & Johnson
. All three companies reported disappointing results and got hit hard, but are now trading higher than before the reported.
Other signs of resilience include no negative pin action, said Cramer. When
reported disappointing results, the stock got hammered, but its rivals rose.
Then there's the Standard & Poors Oscillator, a measure of whether the markets are overbought or oversold. Cramer said that indicator is in the red zone of +10, but no severe sell off has happened.
Finally, Cramer said the shorts are just getting crushed, whether it's
, which rallied $50 today, or others like
Polo Ralph Lauren
, in which the shorts are getting squeezed and caught with their pants down.
Cramer said the market's game of chicken with Friday's labor number is just one more sign that the market wants to be higher. But in the meantime, he said, there is no crime in doing a little profit taking.
In an exclusive "Executive Decision" segment, Cramer spoke with David Pyott, chairman and CEO of
, which reported better-than-expected earnings of 85 cents a share, four cents higher than estimates, on strong revenue up 10% from year-ago levels.
Pyott painted a rosy picture for Allergan, citing the company's ophthalmology business as "a great spot to be in." He said Allergan grew its business by 10% world wide, keeping pace with the world average, and with only two big companies left in the space, Pyott said he expects great things.
However Pyott's biggest opportunity in the near future comes from the possibility of company's flagship product, Botox, receiving approval for use as a migraine treatment. Pyott said Botox was approved in the U.K. for such treatment, and the company is now filing in other countries. He said for the 1.2 million to 3.6 million people in the U.S. that suffer 15 headache days or more a month, Botox could cut that number in half with just a few injections of Botox around the scalp.
When asked about the company's ailing obesity products, Pyott explained that Allergan's products correlate to employment, as healthcare reimbursements could still leave $3,000 to $15,000 in out-of-pocket expenses for patients.
Cramer reiterated his recommendation of Allergan.
New Face of Green
"The new green is all about conserving energy," Cramer told viewers as he continued his series on energy efficiency stocks that are red hot.
Cramer said he was going to recommend the high-flying stock of
, which makes power conversion equipment.
However, upon closer examination, Cramer said that 54% of Power One's sales come from renewable energy, mainly wind and solar power, with large exposure to Italy and Germany. He said that makes the stock too risky because of its dependency on government subsidies to survive.
Cramer said there is another hot business however that doesn't need subsidies, and that's commercial heating, ventilation and air conditioning, or HVAC. He said there's a huge replacement cycle coming in commercial HVAC, with businesses across the country looking to upgrade to more energy efficient units to lower their costs. This was made evident by
, which reported its climate control business was up 29% for the quarter.
Cramer said there are a number of ways to play this trend, including
, which purchased the Trane air conditioning brand that now accounts for 45% of company revenues. Nearly three quarters of Trane sales are to the commercial market, and the company reports commercial sales up 9%.
Also on the list,
, which derives 21% of its sales from HVAC and 50% of that number from commercial sales. Then there's
, 65% of sales from HVAC and 31% commercial. Lennox reported a 12 cent per share earnings beat on an 11% rise in revenues.
Finally, Cramer recommend
, an Action Alerts PLUS stock. He said the company reported strong sales in its building efficiency division, which represents 30% of Johnson Controls' sales.
Cramer opened up his "biggest loser of value" challenge to viewers, offering up 10 nominees of the worst CEOs to add to his coveted "Wall Of Shame". He said viewers can vote for their favorites, and he'll choose the ultimate winner.
The nominees included the heads of
Health Management Assoc
Johnson & Johnson
Cramer was bullish on
He was bearish on
Barnes & Noble
-- Written by Scott Rutt in Washington D.C.
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At the time of publication, Cramer was long Goldman Sachs, Johnson Controls.
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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