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NEW YORK (
) -- The pattern worked again, Jim Cramer told
viewers Wednesday as the markets sold off on the latest words from the
Cramer said the markets have been following a predictable pattern around the last few Fed meetings. It goes something like this:
In the days leading up to a Fed meeting, the markets tend to rally as they presume the economy is too weak to stand on its own and the Fed will continue its bond-buying programs to keep interest rates low.
Why does the Fed want rates low? Because that gives companies incentives to expand and hire more workers. It ignites the housing market with low interest rates. It helps companies refinance their debt to free up more cash for buybacks and dividend boosts. All of these things are good for stocks, and the market is happy to embrace a friendly Federal Reserve.
But then the day of the Fed meeting arrives and investors hear, as if for the first time, that the economy is weak and the Fed has no choice but to keep buying bonds to keep things afloat. This "news" brings in waves of sellers, sending the market sharply lower -- as it did today.
However, in the days after a Fed meeting, the pattern continues. Cooler heads prevail, realizing the Fed is once again our friend and -- oh, look! -- stocks just got a whole lot cheaper. Thus, the buying begins once again.
Cramer still thinks now is a good time to lock in profits so investors can be ready for when the next rally is ready to begin.
Executive Decision: David Wenner
In his "Executive Decision" segment, Cramer sat down with David Wenner, president and CEO of
, the food stock that's up 212%, including reinvested dividends, since Cramer first recommended it nearly three years ago.
Wenner said the grocery business is always a challenging one and B&G is always adapting its products and strategies to changing eating habits and the competitive landscape. Normally, B&G provides steady performance, he noted, although a little less so this quarter.
B&G Foods is adapting, however, and Wenner said snack foods will account for 25% of sale next year and he sees growth overall stemming from organic growth as well as additional acquisitions.
Among some of the challenges this quarter were prices cuts and promotional activities among the competitors of B&G Ortega brand of Mexican foods. Wenner said that Ortega is a strong brand, and its rivals are making a big play in order to regain lost market share and shelf space.
In other areas, however, B&G is performing well with new packaging and displays and new flavors and brand extensions for its many household brands. Wenner said, overall, B&G continues to take shelf space from the other guys.
Cramer told viewers that he feels better after talking to Wenner and he'd continue to be a buyer of the stock.
Executive Decision: Sally Smith
For his second "Executive Decision" segment, Cramer spoke with Sally Smith, president and CEO of
Buffalo Wild Wings
, the sports-themed restaurant chain that just beat earnings expectations by 10 cents a share, sending shares up 9% in today's trading. Shares of Wild Wings are up 167% since Cramer first got behind the company in February 2011.
Smith said Wild Wings had an outstanding quarter and her company's decision to move to selling wings by the pound rather than by the piece has resonated very well with customers who are finding a more consistent experience. She said that Wild Wings is seeing no threat from
wing offering, but Wild Wings' new craft beer offering is doing exceptionally well, already making it one of the top five beers the restaurant sells.
Smith also reiterated how good sports matchups affect Wild Wings' business. She said it matters less what days the games occur and more on great matchups -- and close games with extra innings or overtime. The fantasy football movement has also benefited the chain, which has hosted countless fantasy parties.
Finally, as to whether the company is opening enough locations, Smith said it's just as important to increase sales at existing locations as it is to open new ones. Wild Wings is set to open 95 new locations in 2014 while continuing to grow the same-store sales at existing ones.
Cramer said he's still a huge fan of this regional to national growth story.
In the Lightning Round, Cramer was bullish on
Cramer was bearish on
Executive Decision: Nick Akins
In his third "Executive Decision" segment, Cramer spoke with Nick Akins, president and CEO of
American Electric Power
, the utility that delivered a two-cents-a-share earnings beat while raising the low end of guidance.
Akins described the utility market as a mixed bag at the moment, with some portions of AEP's residential and commercial business doing well while other portions of industrial customers are doing poorly. He also called out continuing energy efficiency initiatives as playing a role in his company's plans to optimize its capital and overall business.
When asked how regulations continue to affect the utility business, Akins noted that AEP is continuing its transition away from coal and towards natural gas and alternative sources, as well as focusing its efforts on transmission and resiliency and less on power generation. Akins reminded viewers that in many cases state regulatory agencies determine the how much energy AEP can generate and the prices it can charge.
Cramer said that every portfolio needs to be diversified and needs a good, safe utility stock with a great yield such as American Electric Power.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer said he's not sure who to blame for the Obamacare Web site disaster, but one thing is for sure -- he wouldn't have given the contract to a Canadian firm.
Cramer said the Obamacare Web site shouldn't have been an IT initiative at all, it should have been an opportunity for American companies to shine. He said
knows a thing or two about customer relationship management, and
knows a little something about finding what you're searching for.
, a stock Cramer owns for his charitable trust,
Action Alerts PLUS, could have built elegant apps for Obamacare and
could've delivered everything to the White House with free shipping.
Instead, a non-U.S. firm was tasked for Obamacare and, apparently, not even a good one. Cramer said there are great Americans at the helm of
and other offshore firms... all of which would've been a far better choice for how America talks to its citizens about their health care.
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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 AAPL and ESV.
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