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"Execution is something professional money managers always want to see in a stock," Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

However, it can be tricky to compare companies with good execution vs. those with bad execution, he said. The best demonstration of execution is almost always in restaurants and retail, where execution is everything, he added.


Domino's Pizza

(DPZ) - Get Domino's Pizza Inc Report


Papa John's International

(PZZA) - Get Papa John's International Inc. Report

, Cramer said. "They're both in the same business, but one blows up and one gives us good execution."

Domino's was crying about how hard the environment is, while Papa John's did not complain and instead, on Nov. 6, beat its earnings estimates and raised its forecast, he said. Meanwhile, Domino's announced less than stellar estimates.

Both pizza companies have long-term growth rates, but Papa John's has a higher multiple because of numbers that are bankable, Cramer explained. It also has better visibility, which is "a multiple enhancer."

The multiple for Domino's, on the other hand, can't be as good because Domino's complained about the environment and didn't deliver good numbers, he said.

To determine the stock price of a company, investors must find out what the earnings will be and multiply them by the multiple, Cramer told viewers. In the case of Domino's vs. Papa John's, even if the earnings stay the same, Papa John's higher multiple means its stock deserves a higher price.

Good execution is a key to a company's stock price going higher, and here it is evident that Papa John's is the winner, Cramer said.

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Taking Control of Your Own Destiny

The Street is hunting for good execution all the time, because it tends to trust management that consistently delivers, Cramer told viewers.

Another comparison Cramer used to show the importance of good execution is

CVS Caremark

(CVS) - Get CVS Health Corporation Report

, which Cramer owns for his charitable trust,

Action Alerts PLUS, and




Not too long ago, there was a consensus that Walgreen was infallible and CVS was just a respectable, second-place competitor, Cramer said. But then, he noted, CVS realized that there was extra money to be made by drugs that come off patent. He said the retailer bought Caremark and acquired all the "very visible profits" that will come from the company through 2012.

The move illustrates how CVS took control of its own destiny and gained an edge over its competition, Cramer said. Meanwhile, Walgreen was content to sit back and take what came in.

CVS realized it wanted growth from drugs going generic, and ultimately its execution translated into better numbers. Now, CVS has better stores and has become the "top dog," he said.

Am I Diversified?

During the "Am I Diversified?" round, the first player called out the following five plays:

Intuitive Surgical

(ISRG) - Get Intuitive Surgical Inc. Report


Precision Castparts




(GOOG) - Get Alphabet Inc. Report



(CSCO) - Get Cisco Systems Inc. Report


Procter & Gamble

(PG) - Get Procter & Gamble Company (The) Report


"I say hallelujah," was Cramer's response. "I would buy every single one of those stocks."

The second caller asked if he was diversified with these five stocks:


(F) - Get Ford Motor Company Report



(HOV) - Get Hovnanian Enterprises Inc. Class A Report



(CELG) - Get Celgene Corporation Report



(ETFC) - Get E*TRADE Financial Corporation Report





While Cramer called the portfolio "perfectly diversified," he said the caller was in the house of pain. He suggested the player keep Celgene and maybe ValueClick, but sell the others.

"This is a tough portfolio and I don't want you to stand still," Cramer said.

The next player's portfolio was made up of the following five holdings:


(JPM) - Get JP Morgan Chase & Co. Report


Johnson & Johnson

(JNJ) - Get Johnson & Johnson Report


Exxon Mobil

(XOM) - Get Exxon Mobil Corporation Report



(MO) - Get Altria Group Inc. Report



(CAT) - Get Caterpillar Inc. Report

, the latter two of which Cramer owns for his charitable trust.

Cramer told the player he had a "picture perfect" portfolio.

The final caller said she owned these five names:

Yamana Gold

(AUY) - Get Yamana Gold Inc. (Canada) Report


BPZ Resources

( BZP),

Triple-S Management

(GTS) - Get Triple-S Management Corporation Report



(INTC) - Get Intel Corporation Report



( NHWK).

Cramer saluted the portfolio and told the caller she was diversified.

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Mad Mail

During the "Mad Mail" segment, Cramer told an emailer that while he doesn't like the fact that

Shaw Group

( SGR) CEO J. Bernhard is selling shares of the company, he likes Shaw Group, and the stock was up three points today.

Lightning Round

Cramer was bullish on


(GES) - Get Guess? Inc. Report


J. Crew

( JCG),

Molson Coors Brewing

(TAP) - Get Molson Coors Beverage Company Class B Report


Thompson Creek

(TC) - Get TuanChe Limited Report



(INTC) - Get Intel Corporation Report



( SGP),


(MGA) - Get Magna International Inc. Report


Johnson Controls

(JCI) - Get Johnson Controls International plc Report


MEMC Electronic Materials



First Solar

(FSLR) - Get First Solar Inc. Report



(CPRT) - Get Copart Inc. Report


Koppers Holdings

(KOP) - Get Koppers Holdings Inc. Report


Oshkosh Truck

(OSK) - Get Oshkosh Corporation (Holding Company)Common Stock Report


Goldman Sachs

(GS) - Get Goldman Sachs Group Inc. (The) Report


Cramer was bearish on

American Apparel

(APP) - Get Applovin Corporation Report



(BUD) - Get Anheuser-Busch Inbev SA Sponsored ADR (Belgium) Report


Advanced Micro Devices

(AMD) - Get Advanced Micro Devices Inc. Report


Pacific Ethanol

(PEIX) - Get Alto Ingredients, Inc. Report


Spartan Motors

(SPAR) - Get Spartan Motors Inc. Report


Force Protection

(FRPT) - Get Freshpet Inc. Report


Want more Cramer? Check out Jim's rules and commandments for investing by

clicking here


For more of Cramer's insights during the Lightning Round, click here


At the time of publication, Cramer was long CVS Caremark, Altria, Goldman Sachs, Caterpillar and Schering-Plough.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.