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NEW YORK (
) -- "Ring the register and ready your shopping list," Jim Cramer told the viewers of his
TV show after an ugly day on Wall Street.
He said while the bears were all over the media today, they will be proven wrong as always.
Cramer said he heard plenty of reasons why the markets were falling today. They included:
1. Bernanke took the wrong course of action and it could lead to disaster.
2. The dollar is going higher because Europe is falling apart.
3. Oil and the baltic freight index are tumbling because of weakness in China.
4. The last 1,000 points on the Dow were only a short squeeze.
5. President Obama isn't going to extend any tax cuts.
6. The rise in interest rates will kill the housing recovery.
7. The bulls finally came to their senses.
Cramer noted that all of these reasons may sound good on TV, but in reality they just don't hold any water. He said corrections are inevitable in the market, and with options expiration week at hand, corrections should be expected.
Cramer also said that most of the companies selling off hard today are those that reported great numbers, and were trading markedly higher off those numbers. "Nobody ever got hurt taking a profit," Cramer reminded viewers, and taking profits is exactly what was happening today.
"Ignore the excuse-a-thon," Cramer concluded, and keep focusing on high- paying dividend stocks that only get more valuable the lower the market goes.
In the "Executive Decision" segment, Cramer spoke with Michael Ward, chairman, president and CEO of railroad
, a company that just delivered a four-cent a share earnings beat on revenue that was up 16%.
Ward reminded viewers that railroads are the most energy efficient way to move goods across our country. He said CSX has reduced the amount of energy it uses by 90% since 1980, thanks in part to cleaner, more efficient locomotives that get over 400 miles per gallon.
Ward also noted that CSX now handles almost three quarters of all consumer goods in the U.S. and is a growing part of its economy. He said that intermodal freight, which is freight that's carried by truck locally, then put on the rails for the bulk of their journey, was up 19% in the most recent quarter and is a great opportunity for the company.
When asked about how a Republican Congress helps CSX, Ward said that transportation is a bipartisan issue, and one that's important no matter who's in control. He said that's why CSX has increased its capital expenditures from $1.7 billion to $1.8 billion this year, to take advantage of all the opportunities that are in front of them.
Finally, when asked about the health of the U.S. economy, Ward said that CSX is seeing a slow and gradual recovery, but the economy is definitely recovering.
Off the Charts
Cramer went head to head with colleague Ken Shreve over the chart of
, one of the few solar stocks Cramer has ever recommended.
According to Shreve, the stock of First Solar has been a battleground. The stock appeared to blast through its April highs, but hit a wall in recent weeks, gapping lower by 9% after the company reported earnings and was downgraded by analysts. Shreve noted that this move lower was on three times the stock's normal daily volume, meaning the big institutional investors are abandoning the stock.
Since the move, shares of First Solar have been unable to cross above the stock's 50-day moving average and down days have been outnumbering the good ones, further evidence, said Shreve, that the big boys are unwinding their positions.
Cramer agreed with Shreve's analysis, saying that it's not too late to sell First Solar. He said simply that solar is a tough place to be, since the industry lives on government subsidies to grow and those subsidies are drying up and pressuring margins.
Cramer said First Solar does have a lot going for it, including a strong balance sheet and a low multiple, but even still he feels the stock's best days are behind it. "The shorts are running wild," he said.
Cramer followed up on
, a stock that stumped him in an earlier show. Cramer said that he'd steer clear of Icon for the moment, as the company is in transition and missed earnings by four cents a share.
Cramer told another viewer that if choosing between
, the world's largest producer of gold, and
, a smaller player, he'd choose Eldorado for its growth. "Barrick doesn't have growth," he said.
When asked about
, Cramer said he thinks the company is still good, but likes
Cramer told other viewers that he still likes
on its fundamentals, and
for the long term.
Cramer was bullish on
He was bearish on
Provident Energy Trust
"I like days like today," Cramer told viewers. He said stocks cannot go up in straight lines, and down days are the times to buy the good stocks that have fallen with the bad.
"Don't question your battle plans, put them into operation," said Cramer. "That's what the pros do."
Cramer continued his recommendation of CSX.
--Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer was not long any stock mentioned.
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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