Four times every year, the market loses its collective mind and makes stupid decisions, Jim Cramer told his Mad Money viewers Thursday. Those four times are called earnings season, Cramer explained, and this quarter's financial reports resulted in its share of moronic snap judgments by the market. But the market's stupidity created plenty of buying opportunities.
Case in point: last week's action in Cramer favorite Home Depot (HD) - Get Home Depot, Inc. (HD) Report . After posting another blowout quarter, shares initially rallied $3, only to reverse, falling $2 a share by the end of the company's conference call. Today, a week later, shares have risen $9.
A similar pattern played out yesterday with rival Lowe's (LOW) - Get Lowe's Companies, Inc. (LOW) Report , the Action Alerts PLUS holding that had a terrific quarter, but saw shares sell off $3, before climbing $8.
How can investors take advantage of these trends? Cramer said Children's Place (PLCE) - Get Children's Place, Inc. Report reported a stunning 13% rise in same store sales today but, you guessed it, saw its shares decline anyway. Cramer said he'd be a buyer first thing tomorrow, before the rest of the market realizes its collective mistake.
Cramer and the AAP team explain the many ways the shorts misunderstand Nvidia (NVDA) - Get NVIDIA Corporation Report . Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.
Getting Retail Right
What's working in retail? Cramer said it isn't JCPenney (JCP) - Get J. C. Penney Company, Inc. Report or L Brands (LB) - Get L Brands, Inc. (LB) Report , it's Williams-Sonoma (WSM) - Get Williams-Sonoma, Inc. Report , which shot up 16.5% today after a monster quarter.
Williams-Sonoma had several strikes against it going into this quarter, Cramer explained. The company sells furniture, a dead category, and it competes with Amazon (AMZN) - Get Amazon.com, Inc. Report , where everyone loses. The company's freight costs are high, its stores are in the mall and. yes, many of its items are made in China and are now subject to tariffs. All of that should certainly doom the company, right?
Not so fast, Cramer said, as Williams-Sonoma saw accelerating earnings growth, strong same-store sales and boasted 53% of its business now comes from online.
Anyone who follows the fantastic management at Williams-Sonoma should have seen this coming, Cramer said. The company is a terrific operator with terrific leadership, and even this mountain of obstacles isn't going to stand in its way.
Over on Real Money, Cramer talks more about what's cooking at Williams-Sonoma. Get more of his insights with a free trial subscription to Real Money.
It feels like we're living in an alternate reality, Cramer told viewers, one where chipmaker Advanced Micro Devices (AMD) - Get Advanced Micro Devices, Inc. Report has become a better investment than Intel (INTC) - Get Intel Corporation (INTC) Report .
Cramer said the notion of AMD outperforming Intel would have been laughable five, 10 or even 20 years ago, but since CEO Lisa Su took the helm at AMD in 2014, that's exactly what's been happening. Turnarounds take a long time, Cramer explained, but Su was quick to restructure and refocus AMD, and the company is now taking market share in PCs and the data center.
Meanwhile, Intel has been plagued by delays in its next-generation chips and was ravaged by security issues in its current ones. Both of those things left an opening to AMD to flourish, just at the time when PCs were making a comeback and the data center and machine learning were accelerating.
Cramer said while shares of Intel are incredibly cheap, at just 11 times earnings, AMD is the one to own, even with shares trading at 35 times earnings. When considering the company's growth rate and looking ahead to 2020, Cramer said AMD is a lot less expensive than it looks.
Executive Decision: Tellurian
For his "Executive Decision" segment, Cramer again sat down with Charif Souki, co-founder and chairman of Tellurian Inc. (TELL) - Get Tellurian Inc. Report , one of our nation's newest liquified natural gas exporters. Cramer proclaimed that Souki was the father of the LNG export business in America with his first company, Cheniere Energy (LNG) - Get Cheniere Energy, Inc. Report , and now aims to repeat that performance with Tellurian.
When asked about the effects of tariffs on natural gas, Souki explained that it will have zero effect on the market. Natural gas is a commodity, he said. If the Chinese refuse American gas, that gas will just get substituted somewhere else. The rest of the world needs natural gas and America has it in spades. In fact, our country "flares," or burns off 300 million cubic feet of gas every day as a byproduct of oil drilling.
Tellurian is so confident in its business, the company is now looking to buy up to 5 trillion cubic feet of gas reserves for its export terminal which is now being developed.
Cramer said he expects great things from Tellurian.
Off the Tape: ThirdLove
In his "Off The Tape" segment, Cramer sat down with Heidi Zak, co-founder and CEO of the privately-held ThirdLove, the company looking to disrupt the women's intimate apparel industry.
Zak explained that ThirdLove was the first company was founded to create a convenient online experience for women to shop for apparel. The company was the first to introduce bras in half sizes, because their research indicated that 30% of women needed them. While typical stores can only carry 36 sizes on their shelves, ThirdLove current has 70 different sizes and a waiting list of women waiting to get them.
Zak said that data drive all of the decisions they make and their data allow them to create specific segments of women and tailor marketing to speak directly to them. The company's online fit finder has been used by over 10 million women and with each one, the system only gets smarter at finding the right size.
In the Lightning Round, Cramer was bullish on Centene (CNC) - Get Centene Corporation Report , Daseke (DSKE) - Get Daseke, Inc. Report , Briggs & Stratton (BGG) - Get Briggs & Stratton Corporation Report and Visa (V) - Get Visa Inc. Class A Report .
Cramer was bearish on Oracle (ORCL) - Get Oracle Corporation Report , Cliffs Natural Resources (CLF) - Get Cleveland-Cliffs Inc Report , Community Bank System (CBU) - Get Community Bank System, Inc. Report and Ally Financial (ALLY) - Get Ally Financial Inc Report .
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At the time of publication, Cramer's Action Alerts PLUS had a position in NVDA, MMM, AMZN.