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NEW YORK (
) -- "The market's finally recognizing that there's real value out there," Jim Cramer told the viewers of his
TV show Wednesday.
But he said that value is not in the consumer staple stocks that so many investors have been flocking to nor in the high-flying Internet stocks. Rather it's in the long-forgotten industrials.
Cramer said the link between the U.S. markets and the plight of the euro may be getting old, and the fundamentals might start to matter again. He said ever since the Japanese earthquake, one of the largest economies in the world has been offline. But that may finally be changing, as stocks like
showed some signs of life today and the Baltic freight index is also turning positive.
Cramer said ever since the Japanese earthquake there's been a huge rotation out of the industrial stocks and into the consumer staples, sending those stocks to some of the highest valuations he's ever seen. "These stocks are priced for perfection," said Cramer, but unfortunately the rise in commodity prices is not creating the perfect environment for stocks like
Procter & Gamble
"Listen to the companies, not the futures markets," Cramer told viewers. He continued to recommend a diversified portfolio consisting of dividend stocks, growth stocks, some consumer staples, gold and of course, one speculative name.
Cramer once again reminded viewers that in relation to
, the stock of
is still very attractive, as is
, a stock which he owns for his charitable trust,
Action Alerts PLUS.
For the next installment of his "Healthy Week" series, Cramer featured
Life Time Fitness
, a health club operator with 92 centers in 21 states. More than just a gym, Life Time offers a full suite of services to help families look and feel better. Cramer sat down with Bahram Akradi, chairman, president and CEO of Life Time for the latest details.
Akradi called Life Time a "healthy way of life" company that focuses on total health, including fitness ,weight loss, and athletics. He said the key to Life Time's programs is that they focus on what members love to do. Whether it's rock climbing, yoga or running, Life Time will design a program around doing what their member's interests are.
Akradi said most gyms are nothing more than rooms full of fitness equipment, but Life Time's programs are much broader and include everything from children's swim classes to master swimming classes for adults. That's why Life Time's attrition rate, the percentage of customers who leave the program, is at an all-time low.
Among the other bright spots for the company is a venture called My Health Check, which offers results-based wellness programs that companies can offer employees. Akradi said that program alone could become larger than Life Time is today.
Cramer said Life Time Fitness is a great company helping to make a difference in the obesity epidemic in our country, adding its stock deserves to be a lot higher.
In a second "Healthy Week" segment, Cramer once again featured
, a stock that's up 154% since Cramer first got behind it in July 2008. Shares of Panera trade at 23 times earnings despite the company's 18% growth rate, but Cramer said investors haven't missed anything yet. Cramer spoke with Ron Shaich, chairman of Panera Bread, to learn more.
Shaich said Panera has been in their business for 20 years, and has a long history of providing "food you can trust." He said whether that's removing trans fats, using organic ingredients or being transparent on calories in all of the company's menu, Panera always does what's best for their guests and is committed to quality ingredients.
When asked about the company's drive-thru initiatives, Shaich explained that Panera has been working on drive-thru for seven years. "Nothing comes quickly at Panera," he joked, while saying that the cmoapny aims to protect the interior of the cafe, so the cafe doesn't interfere with the drive-thru and vice versa.
Finally, when asked about raising prices, Shaich said Panera always gets permission from their guests before raising prices, and only passes on what's needed. He said despite these increases, guests still receive great value and don't mind paying a little more.
Cramer once again reiterated his recommendation of Panera.
Am I Diversified?
Cramer spoke with callers to see if their portfolios have what it takes. The first caller's portfolio included
Cramer said Costco and Amazon were too similar. He recommending selling Amazon in favor of an industrial stock.
The second caller's top holdings included
Cramer said this portfolio was picture perfect.
The third caller had
Magellan Midstream Partners
as their top five stocks.
Cramer said this portfolio was also perfectly diversified.
The fourth caller's top stocks were
Cramer said "well done" to this caller's diversification strategy.
Cramer was bullish on
He was bearish on
Mark Haines Tribute
In his "No Huddle Offense" segment, Cramer gave a heart-felt tribute to colleague and CNBC anchor Mark Haines, who past away suddenly Wednesday at the age of 65. Cramer said Haines defined business journalism, and was the first to hold the feet of CEO's to the fire, asking the tough questions that no one else would. "No free passes" was his mantra, Cramer said.
Cramer also credited Haines with helping him make the transition from hedge fund manager to TV personality. He recounted being terrified of Haines at first, only to learn through the years that the passionate family man was concerned most about the home gamer, the individual investor.
Cramer said Haines, who nicknamed Cramer, "Jim Bob of the church of what's working now," always remained calm, whether it be the tragedy of 9/11, the dot- com collapse of 2001 or the financial crisis of 2008.
A teary-eyed Cramer concluded that "Haines will be missed."
--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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