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NEW YORK (
) -- Investors looking for safe, secure investment ideas need look no further than their local supermarket, Jim Cramer said on
Wednesday as he turned the spotlight on
, a company with no exposure to an ailing Europe.
In a world where the plight of a few small countries can hold the world hostage, Cramer said Hormel gives investors exactly what they're looking for. It doesn't have any ties to the European economy and, unlike
, investors can easily determine how the company makes its money.
But that doesn't mean Hormel is a sleepy stock with no growth, said Cramer. The company is constantly innovating with brands like Jennie-O turkey, which booked $72 million in sales last quarter. Hormel is also the purveyor of many ethnic brands including Chi-Chi's salsa and Wholly Guacamole.
, which has the attention of just about every investor, Cramer said Hormel has the opposite problem -- not enough investors paying attention to this great company. With corn prices falling and a long runway of non-European international growth ahead of it, Cramer said Hormel is exactly the right stock for our turbulent markets.
Hormel also boasts a 2% dividend yield.
Are notebook and laptop PCs going the way of the typewriter? After miserable quarterly results from
, Cramer thinks they are.
Make no mistake, Cramer told viewers, Dell's problems were not just with slowing corporate spending. Sales for the company's consumer products were also down 15%, a staggering figure. But why is this happening?
Cramer said that Michael Dell, Dell's founder and CEO, has a vision of the world that sees everyone with a desktop, a laptop and a smartphone. Unfortunately, that world view is simply wrong, said Cramer, as
, a stock he owns in his charitable trust,
Action Alerts PLUS, has proven with the iPad.
The seismic shift away from notebooks and laptops in favor of iPads goes far beyond Dell, noted Cramer, as both
are also betting on stabilizing PC and laptop sales. Cramer predicts industrywide estimate cuts for PCs based on the Dell news.
Even the newly minted Facebook is vulnerable, said Cramer, as that company struggles to monetize mobile advertising to a level that matches its desktop business. Simply put, advertisers aren't willing to pay as much for mobile advertising, and tens of thousands of users are jumping to the mobile ship every day.
"Why have a laptop when you can have an iPad?" asked Cramer. It's a question with serious repercussions for the technology sector.
Gloom And Doom Vs. PVH
In the "Executive Decision" segment, Cramer once again sat down with Manny Chirico, CEO of
, a stock that's down 12 points since he last spoke with Chirico, but up 103% since Cramer first recommended it in January 2008. PVH just delivered a four-cent-a-share earnings beat on a 4% pop in revenue and boosted its full-year guidance.
Chirico said he's seeing a disconnect between all of the doom and gloom surrounding the world's economies and the strength of PVH's business. He said sales have been strong, even accelerating, in both the U.S. and Europe. U.S. markets remain strong, with comparable sales in the double digits and European comparable sales in the high-single digits.
Looking to the longer term, Chirico said PVH is well positioned for the future so that when economies improve, business will be taking off. Another bright spot for the company is acquisitions, an area where Chirico said PVH is aggressively looking for brands to buy.
Cramer continued his recommendation of PVH, calling the company one of the best apparel makers out there.
Here's what Cramer had to say about caller's stocks during the "Lightning Round":
: "It looks like a decent situation but oil could go down so I'm going to ask you to lay low."
: "It looks like a decent quarter. They might be doing the right thing. That doesn't mean I want to recommend it though."
: "I think that this is a great speculative situation. I'll bless it as a spec."
: "We had management on the show and they were optimistic, so I will be, too. I like it."
: "I think Vertex goes remarkably higher. That remains one of the best biotech companies."
In his second "Executive Decision" segment, Cramer sat down with Abhi Talwalkar, president and CEO of
, a stock that's up 16% for the year despite falling 25% from its highs over the past two months. LSI manufactures chips for hard drives, servers, routers and other equipment at the heart of the "big data" trend.
Talwalkar said that while there are soft spots in the tech world - mainly consumer and government spending - LSI is able to buck those trends by focusing on the growth areas of tech such as the cloud and wireless infrastructure. Nearly 80% of LSI's business pertains to infrastructure, said Talwalkar, which is why softness in notebook PCS, as reported by Dell, are not a factor.
When asked about the hard-drive market after flooding in Thailand, Talwalkar noted inventory remains lower than pre-flood levels and continues to build. However, more important for LSI, he said, are solid-state flash drives, which offer big profits for LSI. The company expects to be the number one player in the solid-state market this year.
Finally, when asked about the company's growing cash position, Talwalkar said that LSI remains focused on operating margin expansion as well as returning capital to shareholders through its stock buyback program.
Cramer remained bullish on LSI.
Am I Diversified?
In the "Am I Diversified" segment, Cramer spoke with callers and responded to tweets to
to see if investors' portfolios have what it takes for today's markets. The first portfolio included:
Cramer recommended selling Seagate in favor of a health-care stock or food company in order to get this tech-heavy portfolio diversified.
The second portfolio's top holdings included:
Cramer identified three of a kind with Intel, Cisco and Apple. He suggested adding an industrial and a food company and selling Cisco and Intel.
The third portfolio had:
American International Group
Government Properties Income Trust
Nordic American Tanker
as its top five stocks.
Cramer said this portfolio was diversified, with a great dividend yield to boot.--Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer's Action Alerts PLUS had positions in AAPL, JPM and AIG.
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