(Story updated to add Cramer's Lightning Round picks, his interview with the head of First Horizon National and his concluding remarks.) NEW YORK ( TheStreet) -- Today's markets are like a big volleyball game, Jim Cramer told his "Mad Money" TV show viewers Thursday. He explained that when bad news hits one sector, the money simply rotates into another, as the bulls simply cannot be stopped. Cramer said this rotation action is a fairly new phenomenon. Last year when the market received bad news, investors headed for the hills. But so far this year, bad news has been sending investors into different sectors instead of heading for the exits. Case in point, today's continued worries over a slowdown in China. Cramer said once again, any stock levered to China got hit and hit hard. Whether it was machinery companies like Caterpillar ( CAT) or the rails or the mining stocks, if a company had even an inkling of Chinese exposure, its shares traded lower. But at the same time investors were hitting the sell button on China, they were also buying tech stocks, noted Cramer. He said stocks like IBM ( IBM) and Intel ( INTC) traded higher and some like Western Digitial ( WDC) were even near their 52-week highs. The buying spilled over into other sectors as well, like high-end apparel and restaurants and even into the dollar stores like Dollar Tree ( DLTR) and Family Dollar ( FDO). Cramer said while hedge fund managers fret over China and the falling price of oil, he would be a buyer of oil stocks, since the world still cannot find enough of the precious commodity and there' no way America will wean itself from foreign oil without embracing its own domestic natural gas. "This rotation is not over," Cramer concluded, as he told viewers to take advantage of the opportunities the markets are creating.
Brighter Oil OutlookIn the "Executive Decision" segment, Cramer sat down with Chip Johnson, president and CEO of Carrizo Oil & Gas ( CRZO), whose stock was hammered down 5% today, despite a increase by the company in its oil production by 300% over the past year. Johnson responded to a recent report that valued the Carizzo's assets in the Eagle Ford shale region of the country higher than the current value of the entire company by saying that it will soon become obvious to investors that Carrizo is becoming a very lucrative oil company. He said that Carrizo has discovered that putting its wells closer together is not diminishing output and is effectively doubling the company's assets. Johnson said by the end of 2012, nearly 80% of Carrizo's revenues will be coming from oil instead of natural gas. When asked about America's sluggish transition to its own natural gas for surface vehicles, Johnson said the transition has started with the waste industry in particular leading the way. He said heavy- and medium-duty trucks should be using our own natural gas and Johnson was reluctant to say that the U.S. will ever export the fuel. When asked whether Carrizo needed any additional cash to fund its operations, Johnson noted that even at current production rates, the company can cover its capital expenditures and will be cash flow positive by next year. Carrizo plans on increasing production 250% between 2011 and 2012. Finally, when asked to opine on the Keystone XL pipeline debacle in Washington, Johnson said he's all for logistics and anything that makes it easier to move oil across our country. He said the lower portion of the Keystone project should've been a given three years ago, as the hotly-debated northern section would be useless without it. Cramer continued his recommendation of Carrizo.
Stock Picker's Market"This is still a stock picker's market," Cramer declared to viewers, as he taught them how to evaluate a group of stocks to determine which one is the best of breed. Tonight's sector, the online travel space. Cramer compared Priceline.com ( PCLN), Expedia ( EXPE), Orbitz Worldwide ( OWW), Travelzoo ( TZOO) and the newly-minted Trip Advisor ( TRIP). Cramer said while all of these companies help travelers find the best deals online, the companies and their stocks are miles apart. The leader of the group, by a mile, is Priceline, said Cramer. This stock is already up 50% for the year and reached a new all-time high today. Priceline goes where the growth is, said Cramer, and it has the best execution of the bunch. The company derives only 22% of its revenues from the U.S., with the rest stemming from the lucrative and fast-growing overseas markets. The stock is also cheap, trading at 18.5 times earnings with a 23% growth rate. Expedia plays "second fiddle" to Priceline, noted Cramer, although this company still gets 60% of its business from the U.S. and is still expanding its platform to service new markets. Cramer called Expedia pathetic given how well Priceline has been able to dominate the market. While Expedia is bad, Cramer said that Orbitz is even worse. Not only does this company get 75% of its revenues from the U.S., but 35% of its revenues are tied to cut-throat airline fares instead of lucrative hotel and package deals. Cramer called Orbitz "untouchable." Then there's Travelzoo, a stock just off its 52-week lows. Travelzoo followed Groupon ( GRPN) into the daily deal market only to realize that space is not as hot as it thought. Cramer called this company a momentum stock that's lost its way and warned investors to "stay away." Finally there's Trip Advisor. Cramer said he needs to see more evidence that this recent IPO knows what its doing before he can recommend it.