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NEW YORK (
) -- Investors are like most TV watchers, always changing channels, Jim Cramer told his
TV show viewers Thursday. He opined about a multitude of stocks that were once hated but are now loved as investors have once again changed their minds.
No stock illustrates this move better than
, a stock Cramer owns for his charitable trust,
Action Alerts PLUS. Cramer said that after the worst IPO in history, Facebook has emerged as the king of mobile and social advertisers. He's still a buyer of Facebook, along with
Other sectors that are getting a second look include travel, thanks to
, and the airlines, with
leading the charge.
Biotech remains a hot sector, with Cramer recommending
as just two of many faves. He was also bullish on housing, despite disappointments from
. He said that news won't affect ancillary housing stocks such as
Other Cramer faves include the autos, banks and oil and gas stocks, along with some technology and semiconductor names. Cramer even had kind words for
Executive Decision: Tarek Sherif
In the "Executive Decision" segment, Cramer spoke with Tarek Sherif, founder, chairman and CEO of
, the cloud computing provider to the health care industry that's seen it shares rise by 30% since Cramer last spoke with Sherif just six weeks ago.
Sherif said the Food and Drug Administration is mandating that the industry change the way it performs clinical trials, and Medidata is the prime beneficiary of that mandate. He said by using modern cloud technology, Medidata is driving value by improving the quality of trials with less risk and helping to bring better drugs to market faster.
Sherif said clinical trials are still largely in the early stages of using technology, but those that have embraced the technology are getting through their trials faster. He said Medidata has a terrific business model where 80% to 90% of its revenue stems from repeat customers.
Cramer said Medidata is an expensive stock, but like many other cloud computing companies the expensive only get more expensive as they rocket higher and higher.
A Serving of Restaurant Stocks
It's the same old story, Cramer told viewers: Companies that execute will see their stocks go higher, while those that drop the ball get punished by the markets. That was certainly evident in the restaurant stocks this quarter, Cramer noted, with several notable standouts.
Weak earnings from
took down many of the restaurant names today, but Cramer said that's a buying opportunity if investors choose the right stocks.
told investors that a weak consumer was to blame for its disappointing quarter, but Cramer said that in reality McDonald's was an outlier because
Chipotle Mexican Grill
didn't have such complaints and posted store growth of 5.5%.
missed earnings by 3 cents a share but Cramer said the problem there appears to be just a problem serving so many customers. Panera is still set to grow its store count by 7% this year and its stock trades at just 20 times earnings with an 18% growth rate.
Cramer reiterated his buy on
after talking to its CEO earlier this week, and was bullish on both Dunkin' Brands and Starbucks, saying that all three stocks are worth buying right here.
In the Lightning Round, Cramer was bullish on
Cramer was bearish on
Philip Morris International
Executive Decision: Nick Akins
In his second "Executive Decision" segment, Cramer spoke with Nick Akins, president and CEO of
American Electric Power
, which today posted a miss of 1 cent a share in earnings on flat revenue while reaffirming its full-year guidance. American Electric currently sports a 4.25% dividend yield.
Akins said that while the manufacturing segment of our economy continues to struggle, once it gets going again earnings will take off at American Electric thanks to the many investments it has made in infrastructure and cost cutting thus far. He said that earnings are split evenly between industrial, commercial and residential customers. While margins are lower on the industrial side, once that segment begins growing the other two quickly follow.
Among the current bright spots for the power company are Texas and Ohio, two areas where housing is improving and where the oil and gas industries are flourishing. Akins said that new leadership at the Environmental Protection Agency is also helping the industry overall, as the agency is learning from the mistakes of past leadership and listening more to what power companies need.
Cramer said that while American Electric Power has been hurt by the rotation out of high-yielding dividend stocks, once the economy picks up more steam this stock will be ready to resume higher.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer said today's indictment of SAC Capital proves that investors weren't paranoid to think that some of the biggest investors had an inside edge on information -- that edge actually existed.
Cramer said the notion that the big boys knew what was going to happen before it happened has been proven correct, as SAC's culture of "don't ask, don't tell" when it came to where analysts got their information is the exact opposite of how an honest firm behaves. He said that such reckless behavior undermines confidence and wrecks the level playing field that all investors rely on.
Cramer cautioned all hedge fund managers that if they're trying to get an illegal edge on the markets, the government will eventually catch them.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC
-- 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 FB.
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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