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NEW YORK (
) -- Beware of all the spooky talk on Halloween about bubbles in the market, Jim Cramer said Thursday on
The bubble talk is everywhere. "You hear it from smart people who've been around for ages," Cramer said. "You hear it from young whippersnapper short-sellers who need the market to come down so they don't look so stupid when they tell their investors how they're doing at the end of the year."
They were at the top of their game today when the market looked really soggy only to work its way back on the strength of some better-than-expected earnings.
Although some people are saying the market is too high, that's not the way Cramer thinks. The market is made of a ton of stocks, some of which can be very overvalued and others that may be undervalued at the same time.
Some current bubble stocks include
, Cramer said.
, a holding in Cramer's charitable trust,
Action Alerts PLUS, and
had positive quarterly reports on Wednesday, by Thursday morning there was already talk of it being time to sell. "Bubble-fearing analysts were determined to slam them down," Cramer said.
Cramer's advice: Stick with "best of breed" stocks even while taking some of the position off the table. "Let the rest run," he said.
Executive Decision: Dinesh Paliwal
In his "Executive Decision" segment, Cramer sat down with Dinesh Paliwal, chairman, president and CEO of
, the provider of premium audio and infotainment systems that has returned 130% return Cramer last spoke with Paliwal in June 2012. The stock rose 12.5% on Thursday.
Paliwal boiled the company's success down to four points: innovation, cost control, looking for new trends and working with other great companies. Then, he said, it's all about execution. "Execution has to become your DNA," he said.
As a global company, Harman looks for what Paliwal calls "best cost" countries for manufacturing, like India, China and Ukraine. Mexico is an excellent example of a "best cost" country and has the advantage of being close to the U.S.
Harman's brands of audio equipment is in a number of car brands, including Ferrari, Toyota, Lexus, BMW, Mercedes-Benz and Lincoln, among others.
In the innovation area, Harman increased the number of its patents to 5,200 from 4,900 in the fourth quarter.
Executive Decision: W. Craig Jelinek
For his second "Executive Decision" segment, Cramer spoke with W. Craig Jelinek, president and CEO of
, the fourth-largest retailer in the world and another Action Alerts PLUS holding.
Jelinek, who succeeded Jim Sinegal as CEO in January 2012, said that going into the holiday shopping season, he thinks the consumer is relatively upbeat.
Costco has been successful in Puerto Rico, Canada, Britain Mexico, Japan, Australia, Taiwan and Korea and is now looking to expand into Spain, with two stores in 2014. After that, Jelinek said, Costco will look to France.
He said the international stores will remain very similar to U.S. Costco stores, although the mix of prodiucts may be slightly different.
The trends at Costco are organic and natural products, and expansion in cosmetics.
Costco's workforce of more than 178,000 people is fairly stable, Jelinek said, with only about 10% turnover a year. Part of that is the company attitude about providing benefits, including health insurance. As Jelinek put it, the company likes to have a work environment where employees are not distracted by concerns outside of work.
In the Lightning Round, Cramer was bullish on
.He was bearish on
American International Group
Am I Diversified?
In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to
to see if investors' portfolios have what it takes for today's markets.
In the first portfolio, the holdings included
Cramer said: This is actually a little complicated. I'm going to have to make some changes. I'm going to ask you to keep Salesforce and I think you've got to sell Apple. And let's add -- let's doing something auto -- I'm going to give you Harman.
In the second portfolio, were
Cramer said, "Cisco and Oracle are too much the same." He recommended selling Oracle and bringing in a pharmaceutical company, such as
Johnson & Johnson
In the third portfolio, top holdings included
Cramer said Regions and Blackstone were too similar and recommended selling Regions and buying Johnson & Johnson.
No Huddle Offense
"Don't ever say this market doesn't give you chances to get in at terrific prices," Cramer said. "Prices you may not even deserve."
Among the stocks he cited were
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-- Written by Carla Baranaukas in New York.
At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, AIG, CSCO, COST, F, FB and JNJ.
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