NEW YORK ( TheStreet) -- With markets down 3% from their highs, Jim Cramer told his "Mad Money" TV show viewers on Tuesday that it's all right to take some profits, trim back some positions and wait for signs that the markets are improving before buying in. He said that the markets have changed for the worse since last week and investors need to adjust accordingly. Cramer said he had no idea last week that tensions with Iran could worsen, Greece could inch even closer to default and China could slow down even more, but indeed, all three of these events have happened. Cramer said he's now more skeptical of a peaceful solution between Iran and Israel, and that could send oil prices to all-time highs and dent corporate earnings. He said the markets aren't equipped for a full-on gas crisis. Then there's Greece, an issue we thought was put to rest, but is once again back on the table. Cramer called the situation "pathetic" and said investors need to watch gold prices, via the SPDR Gold Shares ( GLD), and the Currency Shares Euro Trust ( FXE), to quantify the effects of the lingering debt crisis on U.S. stocks. Finally, there's China. Cramer said he still thinks China's economy is slowing, not crashing, but with emerging markets across the board feeling headwinds, investors need to keep a close eye abroad. All of these things should just cause a market pause, or even a modest reversal, said Cramer, but if any of the three take a turn for the worse, then stocks will quickly become more expensive than we previously thought. That's why he advised raising cash and waiting for a better entry point.
How to Ride the Jobs ReportInvestors who believe Friday's employment report will be a good one need to load up on uniform supplier Cintas ( CTAS) on any weakness, Cramer told viewers. He said as U.S. employment grows, Cintas will be the company that benefits most. Cramer explained that Cintas has 37% market share in the uniform rental business, with 90% of sales stemming from right here in the U.S. thanks to its 900,000 customers. He said as hiring improves, it creates a virtuous circle where hiring leads to more consumption, which leads to even more hiring. This cycle bodes well for Cintas, which makes even more money as its volumes increase. Cramer said the Cintas today is lean and mean, thanks to streamlined operations that's paying dividends in higher operating margins. Cintas last delivered a nine-cent-a-share earnings beat on a 7.9% pop in revenues. Cramer said the company is also shareholder friendly, with a 1.4% dividend yield that's been raised every year for the past 29 years. Cintas also sports a stock buyback program that Cramer said could help the company blow away the numbers again next quarter. Trading at just 15 times earnings with a 13.3% growth rate, Cramer said that Cintas is cheap on every metric and he would be a buyer on any weakness, including today's 2% decline.
Recipe for SuccessIn the "Executive Decision" segment, Cramer went on location to speak with Ron Shaich, founder and executive chairman of Panera Bread ( PNRA), at the company's first location on the island of Manhattan in New York City. Shares of Panera are up 220% since Cramer first featured the company in July 2008. Shaich told Cramer that Panera's new Manhattan location is no different than anywhere else, and still provides great food in an engaging environment. The only thing that is different, is the cafe's size, which includes seating for over 150 guests, and the fact that food is delivered directly to customers' tables. When asked whether rising gas prices are affecting sales, Shaich noted that same-store sales were up 8.9% for January and Panera usually does well in times of rising gas prices because customers tend to stay closer to home, which is right where Panera locates its restaurants. Turning to Panera's "secret sauce" for success, Shaich said that Panera customers have wanted the same thing for 20 years, good food in a great environment. To that end, he said the company isn't changing, only evolving, to include new items like roasted turkey, salmon and an Thai chicken salad. "It's not about new and different at Panera," said Shaich, its about evolving. When asked about the company's recent purchase of a franchisee, Shaich told investors to think of the transaction merely as a financial transaction. He said the company is always looking for the best way to deploy its cash, whether through acquisitions or stock buybacks. Shaich mentioned that in this most recent case, a franchisee wanted to retire after a 15-year run and the company was able to buy the franchise at an attractive multiple. Finally, Shaich mentioned the success of Panera's loyalty program. He said with nearly 10 million members, 40% to 45% of all transactions are now done through the loyalty program, giving the company excellent insight into their customers, which allows them to market tens individually to better meet a customer's needs. Cramer continued his recommendation of Panera Bread.