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NEW YORK (TheStreet) -- This, too, shall pass, Jim Cramer said on Mad Money Thursday after a big down day on Wall Street. But the questions remain: When will it pass and how low will the markets be when it does?
Cramer admitted that there's not much to like in the markets just yet because the best stocks still aren't down low enough to be attractive. Patience will be rewarded, he continued, as he offered viewers a peek into his thought process before buying for his charitable trust, Action Alerts PLUS.
Cramer said he's looking for stocks that are down -- not down just a little, but stocks that are really down. The industrials fit that criteria, down 10%, he noted, but many of them have exposure to Russia and Europe, making them risky. One of the stocks that could be hurt most by Russia, however, is Germany's BASF, and that would be good news for the U.S.-based Dow Chemical (DOW) - Get Report. Cramer said Dow offers shareholders a 3% yield and has an activist investor to boot, which is why he's a buyer of Dow.
What about the financials or technology? Cramer said the financials need higher interest rates so they're off the buy list, and many of the tech stocks, like Microsoft (MSFT) - Get Report, just aren't down enough to be attractive.
Cramer said the oil stocks may be hurt by downgrades with oil prices plummeting; meanwhile, the restaurant and retail names have just become too dangerous to own at the moment.
There are the conservative stocks, like Walt Disney (DIS) - Get Report, Cramer concluded, but even Disney is not down enough to be attractive. That leaves only Dow Chemical, which is why that's the only stock Cramer was buying for Action Alerts PLUS so far.
With the initial public offering of Alibaba about to once again shine the spotlight on all of the Chinese Internet stocks, Cramer circled back to his three favorites in the group, Baidu (BIDU) - Get Report, Vipshop (VIPS) - Get Report and JD.com (JD) - Get Report. Cramer said these three names are legitimate, investable companies that are taking advantage of the burgeoning ecommerce market in China.
Cramer explained that Vipshop is the largest discount retailer in China. The company's flash-sale business model is seeing huge demand and little competition from traditional retail channels. Shares are up 29% since Cramer recommended the stock in May and currently trade at 43 times the company's earnings.
Finally there's Baidu, the Chinese Google (GOOGL) - Get Report with nearly 75% of all search traffic in China. Shares are up 1,400% since the market bottom in 2009 and currently trade at 26 times earnings with a 36% growth rate.
Executive Decision: Sally Smith
For his "Executive Decision" segment, Cramer went on location to sit down with Sally Smith, president and CEO of Buffalo Wild Wings (BWLD) , at the company's newest restaurant in Manhattan. Shares of Wild Wings fell sharply, down 14% after the company reported earnings earlier this week.
Smith responded to the sharp decline by saying Wild Wings had a great quarter and actually increased its guidance, but shares have traditionally been volatile around the earnings and this quarter saw shares run up big going into the release and expectations were running very high. Smith said the decline did not concern her, however, as she remains focused on long-term growth.
Wild Wings has many new initiatives working toward that long-term growth, including a new larger stadium-inspired restaurant design as well as a smaller footprint design that will led itself well to smaller towns that cannot support their bigger restaurants. Smith said Wild Wings could potentially grow to 4,500 locations if the smaller design proves successful.
Also on the menu at Wild Wings is a new focus on guest experience, making sure you're seated at the right table, next to the right TV, so you can see the game you want to see. The company is also introducing new phone and tablet apps to increase the camaraderie and spirit of competition as the games progress.
Finally, Smith also mentioned international growth as another positive for the company, as well as its new PizzaRev concept, based in Los Angeles.
Cramer said he likes Smith's long-term focus as well as Buffalo Wild Wings' long-term outlook.
Executive Decision: Bob Dudley
Dudley said he was very open on his company's conference call, laying out all of the risks BP faces regarding Russia. He said that BP is in a long-term business and the company has to sometimes make big bets in regions of the world that aren't always hospitable. He said BP has successfully operated in Russia, Iraq, Angola and other areas of the world and plans to continue doing so.
Outside of Russia, Dudley noted that BP has begun creating a new business unit for its operations in the lower 48 states. He said that oil shale has a different business model than traditional oil, and by separating out those assets, they'll be creating a new, high-performance division of BP.
Finally, when asked about operations in the Gulf of Mexico, Dudley noted that litigation regarding the Macondo oil spill are progress, while at the same time, BP has increased its production in the region.
Cramer said with a 4.7% yield, BP remains a great turnaround story.
In the Lightning Round, Cramer was bullish on Energy Transfer Partners (ETP) , Kinder Morgan Energy Partners (KMP) , Bristol-Myers Squibb (BMY) - Get Report, Zynga (ZNGA) - Get Report and Waste Management (WM) - Get Report.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer answered the question of what to do with the stock of Whole Foods Markets (WFM) .
Cramer said that Whole Foods has been a terrific operator over the long-term, which makes it worth looking into what's gone wrong in recent quarters. First, there's been a slew of new competition, sometimes from Whole Foods itself as it opens new stores that are close to each other. Then there's the company's margins, which are likely to be hurt going forward as it competes more aggressively.
But ultimately, Cramer said its the same-store sales that matters most to Whole Foods' stock, and they're no longer at the top of the range like they used to be. Why would investors settle for Whole Foods with 3.6% same-store sales growth and a stock that trades at 25 times earnings when they can pick up Kroger (KR) - Get Report, with 4.6% sales growth and only 15 times earnings?
Cramer said Whole Foods is in a "show me" situation, where the company has to prove itself with one good quarter before he can recommend it again.
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-- Written by Scott Rutt in Washington, D.C.
To email Scott about this article, click here: Scott Rutt
At the time of publication, Cramer's Action Alerts PLUS had a position in DOW.