Search Jim Cramer's Mad Money trading recommendations using our exclusive Mad Money Stock Screener and watch Jim Cramer's Mad Money Post Game video exclusively on TheStreet.com.
NEW YORK (
) -- "It's been a remarkable turn for the bears," Jim Cramer told the viewers of his "Mad Money" TV show Wednesday as he commented on the day's trading action. Cramer said the negative news that once took down entire sectors is now barely making a dent in the markets.
Cramer said normally, a negative headline about one company would take down shares of countless others in sympathy. That's been the pattern for what seems like forever. But today there was not one, but two, examples of negative news having no "pin action" on the company's peers.
slashed its earnings forecasts, the news would have typically caused a meltdown in the entire semiconductor group. But instead, shares of Xilinx actually closed the day higher.
The same pattern held true when footwear giant
reported disappointing results. Retailers like
Dick's Sporting Goods
continued to rally, while
closed only slightly down, in spite of its link to Nike.
Cramer said over and over again the pattern of no pin action is playing out. Existing home sales today had no discernible impact on the markets. And while negative headlines still prevail regarding the financials, banks like
Bank of America
, two stocks which Cramer owns for his charitable trust,
Action Alerts PLUS, continue their marches higher.
In the "Executive Decision" segment, Cramer spoke with Daniel Ustain, chairman, president and CEO of truck maker
, a company that delivered what appeared to be a 6-cent-a share earnings miss. But Cramer noted that after a one-time charge, Navistar actually delivered an 8-cent-a-share beat, on revenue that was $160 million higher than Wall Street forecasts.
Ustain said that after three difficult years for the trucking business, with sales down some 60%, the market is finally showing signs of recovery. He said 2011 is shaping up to see 25% to 30% growth over 2010 levels.
When asked about the company delivering only 16.6% gross margins compared to an 18% average, Ustain said that Navistar just completed a launch period for several new products, which caused a temporary dip in margins. Speaking of new products, Ustain boasted that Navistar is the only company with an engine that meet 2010 emission standards internally, without the need for exhaust filtering.
Turning to Navistar's government business, Ustain said that while the government is cutting back in some areas, wheeled vehicles are still in great demand, and he sees Navistar's government business remaining strong for years to come.
Another bright spot for Navistar is the company's international expansion. Ustain said his company has been able to maintain earnings while building out a truck platform in South America, India, South Africa and now in Asia with the help of
, another Action Alerts PLUS name.
Cramer said he's a believer in the truck bull market, and that means he's a believer in Navistar. Cramer said he'd be a buyer on the stock's recent weakness and lowered expectations.
In a second exclusive interview, Cramer spoke with Tim Boyle, president and CEO of
, a stock Cramer recommended on Oct. 26, for a quick 20% gain.
Boyle said Columbia continues to be focused on innovating visibly different products for consumers, ones that are effective but also offer a lot of value. He said Columbia is using technology that initially went into heated car seats, and has applied it to apparel to make heated clothing. Boyle said that like all technology products, as volume grows, prices will decrease, further fueling demand.
When asked about the company's Sorel brand of boots, Boyle said that Columbia acquired the bankrupt Sorel in 2000, and has change the brand from primarily a working man's boot, to one that appeals mainly to women. He said that sales have been stronger than expected with Sorel, leading to less inventory than Columbia would like.
Turning toward rising input costs, Boyle acknowledged that the footwear industry is entering an inflationary period. He said while Columbia has broad sourcing throughout Asia, these inflationary pressures will likely be a concern in the future.
Cramer said Columbia is still an exciting story, but after the stock's recent run up, and the disappointing earnings from Nike, he'd only be a buyer of Columbia on a pullback.
Am I Diversified
Cramer played "Am I Diversified" with callers to see if their portfolios have what it takes. The first caller's portfolio included
Powershares Financial Preferred
Cramer said this portfolio was expertly constructed with dividend stocks and a great growth stock in Salesforce.com.
The second caller's top holdings included
Cramer identified two of a kind with Visa and American Express, and said he'd ditch Visa in favor of a health care stock.
No Huddle Offense
In the "No Huddle Offense" segment, Cramer championed the big rally in the bank stocks. He said with the media still focused on negative research and an ever-looming surge in foreclosures, the bank stocks continue to power higher, showing more and more signs of strength and resilience daily.
Cramer said the bulk of hedge funds and mutual funds won't start piling into these names until the bulk of the move is over, but smart investors know the time to get in is now.
In the Lightning Round, Cramer was bullish on
Energy Transfer Partners
Enterprise Products Partners
Cramer was bearish on
--Written by Scott Rutt in Washington, D.C.
To contact the writer of this article, click here:
To follow the writer on Twitter, go to
To submit a news tip, send an email to:
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC
Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by
For more of Cramer's insights during the Lightning Round, clickhere
At the time of publication, Cramer was long JPM, BAC and CAT
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."
None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.
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.