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NEW YORK (
) -- The bull facts just keep getting in the way of the bearish story, Jim Cramer told
viewers Thursday as he reflected on just what the bears must be thinking as the market continues to march higher.
Cramer said that normally when the government mandates that a company's products stop being used over safety concerns, the stock of that company plummets. But in the case of
, its stock rallied despite the FAA grounding its fleet of 787 Dreamliners out of concerns over battery fires.
How can this happen? Cramer said it's simple. If you're an airline with 787s on order, you're certainly not canceling your order over this news. What are the alternatives, he asked, older, less fuel efficient planes? A fix for the batteries will come soon enough, and for those airlines with planes on order, better the bugs be worked out before you take delivery.
Cramer said the markets are full of cases like Boeing, case where bullish facts are getting in the way of what's assumed to be a bearish story. Payroll taxes went up and are supposed to crimp the U.S. consumer, he said, yet data released today show housing starts at their highest levels in years.
Cramer said that yes, the markets can pull back at any time. But over the long run, it's getting harder and harder to be a bear.
Worth the Investment
With the coming of Obamacare in 2014, Cramer said the temporary staffing business is on a tear, but there's only one company that's worth the investment:
, a stock that's up 26% over the past two months.
Cramer explained that Obamacare requires companies with over 50 full-time employees provide health coverage for those employees, a rule that's forcing many small and medium-sized businesses to turn to temporary staffing to fill the void and save them money.
While the law doesn't officially start until 2014, it provides for a 12-month "look back" to see if a company is large enough to qualify. That means companies must begin keeping their staffing levels below 50 employees starting Jan. 1.
There are many companies in the temporary staffing arena, said Cramer. There are those that provide general labor services while others provide specialized workers like those in accounting, information technology and engineering. Cramer said the latter is the better play as those employees afford the staffing companies higher margins.
That's where Robert Half comes in, said Cramer. This company enjoys 40% margins and is a leader when it comes to placing accounting and IT professionals. He said the stock trades at 19 times earnings and the company has a 20% growth rate, which is better than its competitors like
Cramer said that shares of Robert Half have already run up big, but the move has only just begun as more and more companies begin to navigate the new health-care requirements in our country.
What's Up With Herbalife?
The stock of
has become a battle between hedge fund managers, Cramer told viewers, and that means individual investors need to head for the hills.
Cramer said he avoids battleground stocks like the plague because once the fundamentals stop mattering, there's simply no way to value a stock or figure out where it may be headed.
Herbalife saw the value of its shares almost cut in half after accusations were made the company was nothing more than a big pyramid scheme. However, after a pre-announcement today of better-than-expected earnings, shares have returned to the levels they enjoyed before the accusations.
Cramer said the hedge funds shorting the stock are betting the U.S. government will now step in and investigate Herbalife, something that will either put the company out of business or at least slow its growth enough to send its share price plummeting. But as Cramer noted, relying on th government is a tough strategy as you never know what, if anything, it'll do, or when.
Meanwhile, Herbalife continues to do what it's always done, put up great numbers and grow, grow, grow -- something that will make it increasingly difficult for the short sellers. Cramer reminded viewers that short sellers need to borrow the stock they short, so if everyone goes long on the stock, the shorts may be forced to cover their positions in a hurry.
So while the tide may be turning in the company's favor, Cramer said he's still advising individual investors stay away until after the dust settles.
In the Lightning Round, Cramer was bullish on
Cramer was bearish on
In the "Mad Mail" viewer feedback segment, Cramer followed up on
, a stock that's up 20% so far this year. Cramer said that he'd rather be in a big pharma name like
. Cramer did bless owning
, however, even though that stock is up a full 170% over the past 12 months.
When asked about
, Cramer said he prefers just about any other homebuilder over Hovnanian, and
wins best in show.
Cramer was bearish on
Nordic American Tanker
, although he said the company's dividend cut might signal a bottom in the stock. He was also not a fan of
saying that he prefers
American International Group
, which is less expensive.
Finally, Cramer said he's not a fan of
, which has not been well run as of late, but he is a fan of
No Huddle Offense
In his "No Huddle Offense" segment, Cramer said it's time to unwind the "buy the big banks, sell the small ones," strategy. He said the big banks have failed to inspire any excitement as of late, and the action has moved into the regional banks.
Cramer said the regional banks can make more money as the economy recovers and housing rebounds. He recommended
, a stock he owns for his charitable trust,
Action Alerts PLUS.
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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 a position in AIG, CVX, KEY and UTX.
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