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It's not necessary to wait for the all clear to sound to know that things are getting better now, Jim Cramer told the viewers of his "Mad Money" TV show Thursday.
He said the markets are changing, but the bears don't want to listen.
Cramer said the news from
, a stock which he owns for his charitable trust,
Action Alerts PLUS, of much better-than-expected earnings is game changing. He said no longer can the bears deny the fact that banking can be a massively profitable business.
How did Wells Fargo pull off a win in the middle of Armageddon? Cramer said the answer is simple: The housing market is bottoming. People are lining up to get mortgages and taking advantage of record low rates, and Wells Fargo is now one of the dominant players. And if that weren't enough, the company is also poised to begin buying up zombie banks and selling off the bad parts to the U.S. Treasury.
Cramer said on the heels of this great news, he's also bullish on
, another Action Alerts Plus name, along with
Bank Of America
, which also might be in much better shape than people believe.
Cramer said the bears are wrong, and there are just too many positive signs in the market signaling a turn in the economy. From restaurants like
to appliance companies like
, you don't have to be wearing rose-colored glasses to see that things are better than they were before.
In the Thursday "Sell Block" segment, Cramer recited the mantra "when facts change, we change our minds," as he released life insurers
from solitary confinement.
Cramer said he doesn't want to own any of these names, but with the news that the government's TARP plan will be extended to the insurers, they're no longer toxic.
Cramer said there's no doubt these companies made a lot of terrible decisions, but TARP solves many of their problems and it's time to stop hating them.
On the flip side, Cramer said he's adding dental supply makers
to the Sell Block.
He said in the tougher economic times, dentists are beginning to tighten their belts, opting for lower cost supplies from Mexico as opposed to the higher priced ones from these two vendors.
Dentists are pulling back, especially in the area on consumable products, which accounts for 35% of Patterson's and 30% of Henry Schein's earnings, he said. Yet Wall Street hasn't gotten the message, with analysts holding onto their buy recommendations, he added.
Cramer spoke with Zan Guerry, Chairman and CEO of
( CHTT), to discuss the company's outlook after its recent earnings miss.
Guerry said he was disappointed with the company's first quarter, with sales off 8% more than originally expected. However he noted some bright spots, including a good showing by
and strong sales in both March and April. Overall, Guerry said he feels pretty good about the rest of 2009.
Asked why lower commodity prices hadn't flowed to the company's bottom line, Guerry said that process is a slow one but should show signs of improvement as the year progresses. He also said Chattem is not planning on increasing advertising spending, and is instead preparing to launch seven new products this spring.
Cramer said if investors feel the recession is here to stay, then Chattem is a good stock to own. But if they feel as he does that things are improving, this might not be the best time to own the stock.
Am I Diversified?
Cramer spoke with callers to see if their portfolios have what it takes. The first caller's portfolio included:
First Merit Bank
Cramer told this caller "well done," saying the portfolio is diversified.
The second caller's top holdings included
First Merit Bank
Cramer identified three technology stocks with Cisco, Nuance and SPIL, and recommended selling Nuance and picking up an industrial stock.
Cramer told a viewer that
surged big today because of its core earnings power, and that's what matters most.
In the Lightning Round, Cramer was bullish on
Cramer was bearish on
Church & Dwight
Check out the latest edition of
"Cramer's Take onHeadline Stocks" on Stockpickr.
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Read more of Cramer's Mad Money Lightning Round insights
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At the time of publication, Cramer was long Wells Fargo, Morgan Stanley, JPMorgan Chase.
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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