Cramer's 'Mad Money' Recap: It's Almost 2011 on Wall Street's Calendar (Final)

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NEW YORK ( TheStreet) -- "The cavalry is right around the corner," Jim Cramer told the viewers of his Mad Money TV show Thursday, as he discussed how the calendar will begin affecting stock prices on Aug. 1.

Cramer explained that when portfolio managers and hedge funds value stocks on a price earnings multiple, they never look at past earnings, they only look at future earnings. So with July's earnings season wrapping up, investors may think that October's earnings are next on the agenda but they would be wrong.

Cramer said 2010 earnings are pretty much a given now, with all of the estimates mostly set in stone. He said beginning Aug. 1, analysts will stop paying attention to 2010 and begin looking forward to 2011.

So what's that mean for stocks like Boeing ( BA)? Cramer said despite posting disappointing results, the stock of Boeing stayed virtually unchanged, because in just a few days the company's 2011 prospects will begin to matter, and those prospects look a heck of a lot better than 2010.

Cramer said whether its aerospace or tech stocks, the analysts will being raising their estimates for 2011 beginning in August, and that will be welcomed news for lingering stock prices. He said that it's too late to sell stocks now, investors would be better served to just sit and wait until the calendar changes.

"2011 is right around the corner," Cramer told viewers, and that will provide the cushion stocks need to start heading higher.

Insatiable Bandwith Appetite

In the "Executive Decision" segment, Cramer spoke with Moshe Gavrielov, president and CEO of Xilinx ( XLNX), which is up 31% since Cramer added it to his Mobile Internet Index on Aug. 11 of 2009. Xilinx recently reported an upside surprise of five cents a share on a 58% bump in sales, yet the stock saw profit taking as investors cashed out of the company.

Gavrielov said Xilinx' business is burgeoning, thanks to an "insatiable appetite for bandwidth." He said consumers are demanding new applications, and that in turn demands better devices, all of which need Xilinx chips. Gavrielov said the company's business is broad, including chips for communications, military, automotive and medical applications.

When asked about the many things analysts worry about, Gavrielov said that seasonality is out the window this year, as increased demand is outweighing any summer slowdown. He said in Europe, an area analysts worry about, the company is seeing no slowdown, as most of Xilinx' customers ship products worldwide, and not just to Europe.

Finally, when asked about analysts' fears of customers double booking orders with other vendors, Gavrielov said that Xilinx' products are unique, and therefore can't be ordered from other suppliers. He said his company works closely with all their key customers and therefore knows the orders they've placed are for real.

Cramer said Gavrielov is one semi-conductor company he believes in, and one that's not being held hostage by the recession.

Shame on Dell

In the Thursday "Sell Block" segment, Cramer finally unveiled the new top spot on his "Wall of Shame" list of the worst CEOs in America. He nominated Michael Dell, CEO of Dell ( DELL) to the top honor, as Dell has lost 70% of its value over the last decade.

Cramer said Dell is a pure case of laziness, as he sat idly by and watched his company go from leader to laggard. He said the company was a legend in the 1990's, which is why the fall from glory is all the more painful.

Cramer said Dell was simply too late in diversifying its business away from low cost servers and PCs. Additionally, Cramer said Dell only spends 1% of its revenues of research and development, while rivals like Cisco ( CSCO), a stock, which he owns for his charitable trust, Action Alerts PLUS , Hewlett-Packard ( HPQ) and Oracle ( ORCL) spend upwards of 8% on R&D. "Dell can't compete," said Cramer.

During that last decade, Cramer noted that Michael Dell was paid a salary of $454 million while his shareholders lost 70% of their investments. Making matters worse, the company just paid a $100 million fine to the Securities and Exchange Commission to settle charges that the company took undisclosed payments for chip maker Intel ( INTC).

Cramer called Dell a "pitiful, helpless giant," and said Michael Dell deserves the top spot on his Wall of Shame.

On the Rebound

In a second interview, Cramer sat down with Farooq Kathwari, CEO of Ethan Allen ( ETH) for the latest read on both the housing market and the retail sector.

Kathwari said that fiscal 2009 was the worst year he's seen in his 30-year tenure at the home furnishings company. But since then, he said, sales fell an additional 30% in the company's first fiscal quarter of 2010 and fell 9% in the second before it rebounded in the third quarter, when it was up 19% and up 23% in the fourth quarter. He said the company is making money again, albeit from a lower base.

Kathwari explained that Ethan Allen is one of only a few companies that takes an idea, designs it, manufactures it, distributes it nationwide before selling it through a retail network. Given that extensive operation, he said every element feels the downturns as well as the upturns.

Fortunately for Ethan Allen, Kathwari said his people were up for the challenges and were ready to make the changes they needed. He said the company consolidated three uphoustery plants into one state of the art facility, and 16 small manufacturing facilities into three major ones.

Cramer commended Kathwari for his efforts to turn around Ethan Allen, and said he's still a buyer of the stock.

Lightning Round

Cramer was bullish on CIENA ( CIEN), Teva Pharmaceutical ( TEVA) and Citigroup ( C).

He was bearish on Microsoft ( MSFT).

-- Written by Scott Rutt in Washington D.C.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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 .
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, 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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