"You know that in a slowing economy you need to own secular growth stocks," Jim Cramer told "Mad Money" viewers Tuesday. "You also know we have a slowing economy, and you don't want to own cyclical stocks." Cramer promised to show viewers how to identify hidden versions of each type as a way to make money. "Tonight I'm going to go over two stocks that I think the Street has mislabeled," he said. "I think you buy CSX ( CSX) and sell Wrigley ( WWY)." "In the old days, railroads
A Love/Hate RelationshipNext Cramer turned to NutriSystem ( NTRI), which reported 358% earnings growth, but the market didn't care because the stock had declined hugely. "I am talking about total decapitation," he said. "How could NutriSystem have such a spectacular quarter and be so down?" "We need to explain what happened here." Part of the problem, Cramer believes, was that although the stock was "loved" by the Wall Street analysts, it was really hated by some large-scale investors. "NutriSystem is even more loved than Google," he said, noting that all investors that wanted to own the stock already did. But he pointed out that 30% of the company's stock float was shorted. "That's one of the most heavily shorted stocks out there." What the shorts see, he explained, is that the company has a bad distribution model that involves selling directly to consumers rather than through retail establishments. "The shorts are right," he said.
Challenging the AnalystsAfter that, Cramer spoke with Nabors Industries ( NBR) CEO Gene Isenberg after his company's stock had been punished, despite superb earnings. "The analysts hate the stock," he said. "So let's challenge these analysts." "There's a ton of private equity money available, why don't you take the company private?" Cramer asked Isenberg. Isenberg said the company was taking a step in the same direction by buying back company stock. "They think day rates have gone down," Isenberg said. "We think they will go up. We are not just a domestic company, but we are, in fact, a company that next year will have 60% of its business outside the lower 48." "We are doing well and the earnings are growing," he added. "We are the international driller of choice." "That was Gene Isenberg who has never bagged me in 22 years," said Cramer. To view Cramer's interview with Isenberg, please
Lightning RoundCramer was bullish on Finisar ( FNSR), Cognizant Technology Solutions ( CTSH), Broadcom ( BRCM), PepsiCo ( PEP), SGL Carbon ( SGG) and Google ( GOOG). Cramer was bearish on Cendant ( CD), Vonage ( VG) and DexCom ( DXCM). Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here. For more of Cramer's insights during the Lightning Round,