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"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 like CSX only carried stuff that stopped shipping when the economy slowed down," he said, but the world has changed since then.

Now 25% of the shipping volume is coal - a product that America will need to keep using no matter what because "it's the cheapest fuel around." The other products hauled by CSX are grain (12% of the total), road aggregate (12% and benefiting from high spending by government) and waste (10-12%), he noted.

"CSX is now more than 60% non-cyclical," he said. "I think CSX is now a secular growth story."

He pointed out that the stock is selling at 14 times earnings, two points below the market average, making it cheap.

"The rail companies they are now a benign and happy oligopoly," he said. "The only railroad with any competition is Burlington Northern ( BNI). The total lack of competition gives incredible pricing power, and I don't think anyone is going to build a new railroad any time soon."

He introduced viewers to the acronym BANANA, which he says stands for Build Absolutely Nothing Anywhere Near Anyone.

That lack of new rail networks, the fact that "roads in the country have become very, very bad" and high gasoline costs means that trucking won't be able to compete with rail haulage.

"UPS just missed its quarter because of this," he said. "As far as I'm concerned, they are in a railroad renaissance. I think you buy CSX. It's a secular wolf in cyclical sheep's clothing."

Gumming Up the Works

"The flip side is to try to help you not lose money," Cramer told viewers. "I want you to be on the lookout for crappy stocks that the market thinks are growth stocks," but in reality, aren't.

"I think Wrigley is one of those stab-you-in-the heart plays," he said, noting that profits were down when the company reported today.

"The Street looks at food and beverage stocks as secular plays," but Cramer expected analysts to upgrade the stock Wednesday morning, which could provide viewers with a suitable selling opportunity.

Wrigley isn't in the position of Coke and Pepsi, which together command what he called a "cola duopoly." "It's a poorly managed company facing some severe competition," he warned.

Cramer recognized that the company had poor management and was getting squeezed by Cadbury Schweppes' ( CSG) in the gum market.

He said that although people would still buy gum in an economic slowdown, there was no guarantee it would be Wrigley's gum when it could be Trident, Cadbury's brand. "The big problem is thin margins because Cadbury is on a mission to take market share away from Wrigley," he said. "These are totally interchangeable products."

Cramer also believed that management had shown its inability to execute distribution and sales of its hard-candy line, Altoids.

The market was pricing Wrigley stock at a multiple of 22 times earnings, which was six percentage points higher than the market multiple. "You are talking about a company that is more expensive than almost all the other companies out there," he said.

He urged viewers to avoid Wrigley stock and anything that looks similar, such as shares in ConAgra Food ( CAG) and Sara Lee ( SL).

A Love/Hate Relationship

Next 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 Analysts

After 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 click here .

Lightning Round

Cramer 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, click here .

Here's your chance to pick the stock you'd like me to feature on my radio show July 27:
Chicago Merc
Peabody Energy
St. Jude Medical
Whole Foods

REMEMBER to listen in on Thursday for my take on the stock that wins this poll!
At the time of publication, Cramer was long Nabors.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

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