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NEW YORK (
) -- "Panic is not a strategy," Jim Cramer told the viewers of his
TV show Wednesday as he urged investors not to follow the negative headlines and unload their stocks in a sell off.
Cramer said as the markets have just proven, with a down 165-point day immediately followed by an up 129-point day, selling into weakness is just dumb. He said the newspapers and blogs are filled with negative articles that are wrong.
Cramer said the headlines once again read that China is sparking the sell off, but in reality, the Chinese are being prudent in not creating a bubble in their economy. He said that yesterday was a great day to buy
Other stories warned that
had disappointing earnings. But Cramer noted that he prefers to measure Goldman using sequential quarterly results, and not year-over-year estimates.
While some headlines read that bank failures are on the rise, Cramer noted that a tiny article noted that the FDIC canceled a rate hike it was intending to levy on the banks because bank losses have been less than it expected.
And the negative articles continue, said Cramer, from industrial demand, to
"disappointing" quarter, to
, another Action Alerts PLUS name, to real estate investment trusts.
Cramer said in all of these cases the sellers were stupid to sell on the news, as
proved industrial demand is terrific, and Apple and Juniper both ended the day higher.
In an exclusive "Executive Decision" segment, Cramer spoke with Andrew Damico, president and CEO of
, one of the newest cloud computing companies helping businesses save time and money.
Damico said IntraLinks started in the financial services industry, but is now helping biotech and pharmaceutical companies securely exchange critical information amongst interested parties during clinical trials. He said IntraLinks' business model can be used in other industries as well, and even in the government.
Damico said that while security is a major component of what IntraLinks does, trust, compliance and service are also key factors that the company strives to do well. He said that IntraLinks not only services its customers but also its customers' customers, vendors and suppliers.
Another bright spot for the company have been mergers and acquisitions. Damico said the mergers market has been big business for the company, and overall he sees a $9 billion market opportunity with a "long runway" of new business areas to explore.
Cramer said IntraLinks is a great story, but noted that with the stock at a 52-week high, he'd only buy in on a pullback.
Recovering More Oil
In a second "Executive Decision" segment, Cramer spoke with David Demshur, chairman, president and CEO of
, a company which Cramer said has "a terrific story."
Demshur said that Core Labs is all about return on invested capital and free cash generation, which is why the company pays both a quarterly dividend and special dividends as well as buys back its own stock. He said that Core Labs helps companies around the globe obtain much needed incremental revenue by recovering more oil from their existing reservoirs.
Demshur said that Core Labs derives 70% of its revenues from oil and 70% internationally. He said he company is now more selective about where it operates, noting Core Labs will turn down business in high risk areas if those areas will adversely affect its margins.
When asked about Iraq, Demshur said Core Labs continues to help enhance production in that country. He said that Iraq is producing about 2.4 million barrels a day, still far below their 3.6 million barrel peak in 1979. Demshur said the world needs every drop of oil it can produce, which is why he expects Iraq, and the Gulf of Mexico, to be important areas going forward.
Cramer reiterated his buy recommendation on Core Labs.
Am I Deversified?
Cramer spoke with callers to see if their portfolios have what it takes. The first caller's portfolio included
Cramer said this was a beautiful portfolio.
The second caller's top holdings included
Cramer said "bravo" to this portfolio.
The third caller had
Procter & Gamble
Cramer said Procter and Kimberly make the same types of product. He said this portfolio needed a technology stock like Apple.
The fourth caller's top stocks were
Breitburn Energy Partners
( MOT) and
Cramer said Citigroup and AIG were too similar and one had to go. He recommended picking up a diversified industrial stock to replace it.
Cramer was bullish on
He was bearish on
--Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer was long Apple and Juniper Networks.
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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