NEW YORK ( TheStreet) -- "It's too late to sell the smokestack stocks," Jim Cramer told the viewers of his "Mad Money"TV show Wednesday. He said the rotation out of the consumer staple stocks has begun, and the big money is moving back into the industrials. Cramer said we've probably reached the high-water mark for stocks like Procter & Gamble ( PG) and the bottom for stocks like Cummins ( CMI) and Caterpillar ( CAT), a stock which Cramer owns for his charitable trust,
Regulators OverreactIn the "Executive Decision" segment, Cramer spoke with Kelly King, chairman and CEO of BB&T ( BBT), a regional bank whose shares are up 35% since Cramer first recommended it in May of 2009. Shares are down slightly, 7%, since Cramer last spoke with King on Feb. 14. King said BB&T did see a slowdown in activity mid-way through the first quarter, but that weakness has passed and companies are once again making investments in equipment and employees. King also responded to reports that the government is preparing to impose more stress tests on banks and limit dividend payments. He said anytime there is a crisis, the regulators tend to overreact. He said it's time to realize that the recession is over and the banking sector needs to support the recovering economy. "You can't lump the good banks in with the bad," he noted, the regulators need to treat each bank individually. Finally, when asked about homeowners living in homes for up to a year or more without making payments, King said that no banker wants to kick families out of homes. That said, King continued to say that it's simply not OK to borrow money and not pay it back, and there needs to be a better system for evicting foreclosed homeowners and recovering those properties. Cramer continued his support of BB&T, saying that BB&T was one of the few banks that remained profitable through the financial crisis.
Big Soda PlayIn a second "Executive Decision" segment, Cramer spoke with Daniel Birnbaum, CEO of Sodastream ( SODA), a stock that soared up 23% today on a 12-cent-a-share earnings beat and a 50% rise in revenues. Shares of Sodastream are now up 170% since Cramer got behind the stock in Nov 2010. Birnbaum said that Sodastream offers consumers four things: convenience, value, wellness and environmental benefits. He said individually those things might not be compelling but as a whole package it makes a lot of sense for consumers. On average, consumer save 70% if they're making their own carbonated water and 20% to 30% if they're making their own cola products. Birnbaum also said that its no simple task to compete with Sodastream. He said the company has entrenched competition in Sweden, and still commands 80% market share with its 100 flavors and 35 different soda making machines. Back in the U.S., Birnbaum said that Sodastream is focused on the in-home market currently, but plans to expand into the corporate market eventually. Birnbaum said the soda market is estimated at $250 billion globally, and if Sodastream can capture even single-digit market share, it would have a huge business. He agreed that Sodastream's growth path has a lot of parallels to that of Green Mountain Coffee Roasters ( GMCR) in the coffee category. Cramer said he wouldn't be a buyer of the stock up $10 a share, but if it comes in a bit, he'd jump in.