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NEW YORK (
) -- The markets are headed into the second quarter with a full head of steam, Jim Cramer said Thursday on
But that doesn't mean the skeptics won't be out in full force on Monday with a while new set of reasons to worry.
Whether it's fears about the sequester, China or the next European country with banking woes, Cramer said the naysayers will have a lot to talk about during the second quarter. But that doesn't mean the market's fundamentals aren't just as good as they've been all year.
That's why on Monday, Cramer said he'll be watching the Chinese PMI numbers, along with our own ISM numbers, so he can use any market weakness to do some buying.
Cramer said on Tuesday he'll be watching spice maker
, a company he expects to report great numbers. Meanwhile, on Wednesday he'll be watching
, which he recommended buying on any weakness, along with
, a stock he suggested taking some profits in ahead of its results.
Thursday brings news from the European Central Bank, and Cramer said he's not expecting anything good to come from that announcement. Finally, on Friday Cramer will be watching the non-farm payroll numbers because hey may be the last "good" numbers before the sequester takes hold.
Executive Decision: Martin Mucci
In the "Executive Decision" segment, Cramer spoke with Martin Mucci, president and CEO of
, the payroll processor with a 3.7% yield and shares that are hitting 52-week highs.
Mucci said the U.S. economy continues to grow, but at a very slow rate. He said Paychex has seen an increase in the number of checks per payroll at existing companies for 12 consecutive quarters, but is not yet seeing a large pickup in the number of new businesses being formed.
When asked what it would take to jump-start new businesses, Mucci said that as the housing market improves, new business will begin to form around it and expand from there. Overall, however, he said many businesses still have concerns over healthcare costs and may be reluctant to begin hiring.
Finally, when asked about moving toward a more cloud-based payroll service, Mucci said Paychex already has a software-as-a-service model, but also combines that with a dedicated payroll specialist to assist with any questions. He said that, ultimately, many companies will move their payroll functions to a cloud-based model, but Paychex remains a strong believer in also providing the specialists.
Cramer reiterated his buy on Paychex, saying the dividend pays investors to wait until hiring returns, at which time Paychex will be one stock headed to the moon.
A Healthy Regeneron
Inventing new drugs is still a great growth business, Cramer told viewers, but that business has moved away from the big pharma names of old and into a new generation of biotech companies including
, a stock Cramer has touted for eight years for a gain of 3,400%.
Cramer said that despite the staggering growth over the past eight years, Regeneron is still a value stock -- it trades at just 30 times earnings despite a 29% annual growth rate. He said investors shouldn't let the stock's high share price deter them because this is one stock that still has plenty of room to grow.
Regeneron's main product is Eylea, a best-in-class treatment for macular degeneration. The drug only requires half as many injections as its rivals and has been a huge hit with doctors and patients. But Regeneron isn't stopping there. The company has several new indications that Eylea could possibly treat, and it is hard at work exploring all of them.
Beyond Eylea, there's also Regeneron's bowel cancer treatment, which only accounted for $31 million in sales for 2012 but is growing and just received approval in Europe. Regeneron is also working on anti-inflammatory drugs as well as anti-cholesterol, arthritis, dermatitis and asthma treatments.
With all of these great opportunities in the works, Cramer said Regeneron is still on of his favorite biotech names.
In the Lightning Round, Cramer was bullish on
Sunoco Logistics Partners
MarkWest Energy Partners
In a special interview, Cramer sat down with Fred Hassan, former CEO of Schering-Plough and the author of "Reinvent: A Leader's Playbook for Serial Success."
Hassan said every turnaround story starts with people, then culture, then execution. All of those aspects begin with a company's CEO. He said if a CEO doesn't have focus and passion, then investors should steer clear. But in the case of many successful turnarounds, like those at
, CEO Alan Mullaly clearly had the right skills to get the job done.
When asked about his role as non-executive chairman at
, Hassan said Avon's new CEO is following his lessons from the book. He not only had the passion to accept the challenge in the first place, but he is now on the ground working the business and building the team that's needed to lead the company forward.
Turning to his home turf in the pharmaceutical world, Hassan said that it's clear the old way of developing drugs is no longer working, which is why all of the action has been in the smaller biotech companies. He said that some in the Big Pharma world see that change and are adapting, but others are clearly not.
Cramer said Hassan's new book is a must-read and said Hassan himself should be an inspiration to all.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer said that all too often individual investors have problems spotting stock market bargains. He said that unlike sales at your favorite retail store, in the stock market the discounts aren't always obvious and sometimes require homework.
Such was the case with
, all of which reported Wednesday to underwhelming results, giving investors a terrific opportunity to buy, if they were able to spot the bargains.
Cramer said while the headlines about Red Hat spelled doom and gloom, on the conference call things weren't that bad. Meanwhile, Five Below may have had some supply chain issues, but that won't stop the company from being able to open time times as many stores in the coming years. Then there's PVH, which may need more time to turn around its Warnaco acquisition, but it certainly doesn't count the company out for good.
In all of these cases, Cramer said, investors need to be able to spot when the market's reactions don't match the fundamentals, and buy into the ensuing panic. Not always easy, Cramer admitted, but certainly profitable.
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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 no position in stocks mentioned.
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