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NEW YORK (
) -- "Don't get mad that I'm not agitated by this selloff," Jim Cramer told the viewers of his "Mad Money" TV Show Wednesday. He said quite simply that he's seen this movie before, and knows how it ends.
Cramer characterized today's trading action as "just another garden-variety selloff," and one that will likely continue off the weakness of
in after hours trading. So instead of panicking, Cramer said he's thinking about which stocks are coiled springs, ready to snap back midday tomorrow.
Cramer said buying into a panic has become a lost art on Wall Street as of late. He said the same pattern repeats itself over and over, yet no one seems to notice. The selloff starts big, then continues the following day. But by midday, he noted, about a third of the market will find its footing and start heading higher.
Which stocks does Cramer think will be the first to bounce? He said stocks like
, a stock which he owns for his charitable trust,
Action Alerts PLUS, are prime candidates, as are
Cramer said he'd also consider picking up some
off their strong earnings (the stock was up today) and
, which recently got crushed when it reported.
After interviewing Sean Boyd, CEO of
, yesterday Cramer said Thursday may be the perfect opportunity to start a position in gold.
Boyd noted yesterday that most of the world's gold has already been found, making finding new supply harder and harder. Cramer said the world is simply running out of gold, and unlike other commodities, gold is unique and has no competition.
Also in gold's favor, the calendar. Since 1993, the gold stocks have risen on average 8.43% in September, as demand for gold in India and China rise in late summer and early fall. Cramer said this statistic is a true pattern, and one that should be acted upon. He said gold could test $1,300 an ounce as demand heats up.
Cramer reminded viewers that he's a fan of the
SPDR Gold Shares
, as well as owning gold coins or bullion. He also recommended the gold stocks, like Agnico and
In the "Executive Decision" segment, Cramer spoke with Kevin Burke, chairman, president and CEO of
, a utility with a 5% yield and a stock that's up 24%, 34% including its dividend, since Cramer last spoke with Burke on April 21, 2009.
Burke said that despite recession fears, the utility business in New York City is great. He said last month, ConEd delivered more electricity than ever before, thanks in part to a record hot July. He said ConEd is also seeing low vacancy rates and new demand for service and upgrades throughout their service area.
Burke also showed off some new smart-grid technologies, including an in home monitor that lets customers view and control their electricity usage. He said customers with electric cars, for example, could choose to charge only at night, when rates are lower. Presently the company is testing these devices to see what customers like.
When asked about the company's seemingly high-dividend yield, Burke said investors need to look at ConEd's yearly figures, as the utility business is seasonal. He said ConEd is investing around $2 billion a year into its distribution system in return for higher rates, and the difference is returned to ConEd's shareholders.
Burke also reminded viewers that ConEd has a transmission and distribution model, meaning it's not subject to any cap and trade legislation since it no longer generates any of its own electricity. He said in the new competitive market, customers have the choice of where to buy their electricity, and ConEd will deliver it.
Cramer continued his recommendation of ConEd.
Cramer sat down with Don Wood, president and CEO of
Federal Realty Investment Trust
, a stock that's up 14% since Cramer last spoke with Wood on Feb. 19, and up 45% since his first recommendation on May 7, 2009.
Wood started off by saying that when it comes to real estate, everything is not created equal. He said business for Federal Realty is pretty good, and that when you own and operate properties for the long term, you need to have the right properties at the right locations, and Federal Realty has that.
When asked about the company's dividend, Wood said of the 11,000 or so companies that pay dividends, Federal Realty has been paying dividends longer than 10,978 of them, a fact he's very proud of. He said as a landlord, he's always worried about certain segments of retailers, but in the end there are always alternatives out there, which makes his business strong.
Finally, when asked about whether federal stimulus money is finally hitting the streets, Wood painted a mixed picture. He said for some of the company's projects, $15 million of stimulus has been released, but other federal and state stimulus money is still tied up in red tape.
Cramer commended Wood on his continued success and once again recommended Federal Realty as a great stock to own.
Cramer was bullish on
Procter & Gamble
United Parcel Service
He was bearish on
Atlas Air Worldwide Holdings
-- Written by Scott Rutt in Washington D.C.
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At the time of publication, Cramer was long Apple.
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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