NEW YORK ( TheStreet) -- "The stock market is irrational, inefficient and sometimes even wrong," Jim Cramer told the viewers of his "Mad Money" TV show Wednesday as he opined on the day's market tumble. He said that the mechanics of the market, not the fundamentals, were once again in charge, causing some great buying opportunities. "How can this market be so stupid," asked Cramer? He said for weeks investors have been worried that rising commodity costs will hurt companies and therefore stocks, but now when commodity prices are finally falling, stocks are trading down big time. Does it make sense? "No," says Cramer. But what does make sense is that hedge fund speculators who have been driving up oil futures are finally being asked to put up more collateral. And since these speculators don't have any collateral, they're being forced to sell, which is driving oil, and the markets overall, into a tail spin. "The speculators are finally on the run," said Cramer, but that doesn't mean that all stocks should be sold. Cramer said investors need only use their heads, and start buying stocks that will do well with lower gasoline and other commodity prices. Whether it be silver, corn, oil or steel, there are a lot of companies that will be rocketing higher now that input costs are coming back to earth, he said. Among Cramer's favorites, stocks like Dow Chemical ( DOW) and DuPont ( DD), but also restaurants like Darden Restaurants ( DRI), which will most certainly benefit from the coming lower gasoline prices. "This is a great opportunity," said Cramer, use it wisely.
Wheeling and DealingIn the "Executive Decision" segment, Cramer once again sat down with Chris Loughlin, CEO of TravelZoo ( TZOO), an Internet travel destination that is now expanding into the local "deal" space. TravelZoo recently delivered a nine-cent-a share earnings beat on a 29% increase in revenues. Loughlin said that TravelZoo has 23 million subscribers to its service and with local deals, the company is looking to double the amount of revenue they generate per subscriber. He said the company is currently offering local deals in only 48 markets but will be expanding to 60 markets soon. Loughlin also said that TravelZoo has chosen to roll out its local services organically, rather than through acquisitions. He said the service provides only two deals per week, focusing on quality over quantity and revenue. Loughlin described a heated editorial process in choosing which deals will make the cut given the limited availability. Loughlin also had great things to say about TravelZoo's European expansion. He said the Europeans get lots more vacation time than their U.S. counterparts and are far more savvy to travel deals. Loughlin called Europe an enormous market for TravelZoo, which currently only operates in four European countries. Cramer admitted that TravelZoo is a wild trading stock, with lots of ups and downs, but also said that the company is heading in the right direction. With Groupon expected to IPO soon with a multi-billion dollar valuation, Cramer said TravelZoo is a steal at just a $1.5 billion market cap.
Customized ApproachIn a second "Executive Decision" segment, Cramer welcomed Terry Lundgren, chairman, president and CEO of Macy's ( M), a retailer whose stock has been on fire since the company reported an 11cent-a-share earnings beat on a 5.7% increase in revenues. Macy's also raised their guidance and doubled their dividend to 1.5%. Lundgren explained that Macy's is looking to be competitive in the long run, which is why the company took steps years ago to transform itself back into a world-class retailer. He said the 2005 acquisition of the May Company allowed Macy's to burst onto the national scene, while consolidating its seven regional buying groups into just one has increased efficiencies. But perhaps Macy's biggest decision, said Lundgren, was to roll out its My Macy's program, which grouped its stores into 69 districts, often with just 10 to 11 stores per district. Lundgren explained that each district is now able to buy merchandise that's right for their customers, leading to higher sales and loyalty. Lundgren also noted that not everyone in retail is winning, which means Macy's is taking share from other competitors. He said Macy's sells higher end brands like Coach ( COH) and Polo-Ralph Lauren ( RL) but is still seen as a value retailer. "That's the sweet spot," said Lundgren. Lundgren also told Cramer that Macy's customers are doing better financially. He said customers are paying down their debts and the Macy's credit portfolio is a lot stronger than it once was. Cramer said there's a reason shares of Macy's are up 74% since he first got behind the venerable retailer on Dec 7, 2009. Macy's, he said, is still a buy.