Cramer's 'Mad Money' Recap: Great Buying Opportunities (Final)

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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 Dealing

In 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 Approach

In 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.

Surprise Departure

In another "Executive Decision" segment, Cramer spoke with Andrew Damico, president and CEO of IntraLinks Holdings ( IL), a company that assists in mergers and acquisitions by securely linking data systems to help speed up the process. Shares of IntraLinks got hammered, down 32%, when the company delivered inline numbers with lowered guidance.

Damico explained that he didn't know a key customer was ramping down its business with IntraLinks until after the quarter had closed. He said the IntraLinks did disappoint investors who bought into company's secondary offering just a few weeks ago. Damico said the close proximity of the bad news was not intentional, but added that nothing fundamentally has changed with the company.

Damico said he still sees great opportunities going forward for IntraLinks. He said the company raised guidance for its mergers and acquisitions business and sees its enterprise products, currently being used by the pharmaceuticals industry, growing 81% year over year. Damico called their key customers' sudden departure a "blip" in the company's performance.

Cramer told viewers they should do some homework on IntraLinks, and if they feel today's 32% haircut was an overreaction, $20 a share would make an attractive entry point.

Lightning Round

Cramer was bullish on Mercer Int'l ( MERC), Limited Brands ( LTD) and NovaGold Resources ( NG).

He was bearish on Bank of America ( BAC), Clean Energy Fuels ( CLNE) and Southern Copper ( SCCO).

Closing Comments

In his "No Huddle Offense" segment, Cramer said the stock market game just got a lot more honest, now that accused insider trader Raj Rajaratnam was found guilty on all counts.

Cramer said any hedge fund manager knows that what Rajaratnam was doing was highly illegal, and his actions makes a mockery of those who actually do their homework on the companies they invest in. Rajaratnam proved that he knew nothing about the markets, only what the insiders were telling him.

"Three cheers for the little guy," Cramer concluded.

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

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At the time of publication, Cramer was not long any equities 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."

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