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NEW YORK ( TheStreet) -- When fear abounds, investors need to have the guts to do nothing, Jim Cramer told his "Mad Money" TV show viewers Wednesday. Cramer said that if they really want to sell, they should take a deep breath and wait, but even more prudent would be to do a little buying. Cramer explained that it's only natural to want to sell when the rest of the market is panicking. But selling into a panic is often the worst time to sell. The market will always provide you with a better price to get out, Cramer added, which is why investors should prepare before a selloff happens so they'll be ready when it does. Cramer recalled the seven great American growth stocks he featured in April, stocks that included Apple ( AAPL), a stock which he owns for his charitable trust,
Executive DecisionIn the "Executive Decision" segment, Cramer sat down with Jim Hagedorn, chairman and CEO of Scotts Miracle-Gro ( SMG), a stock that was hammered down 16% in Tuesday's trading after the company delivered a mixed quarter with a 9-cent-a-share earnings beat on lighter-than-expected revenue. Scotts currently yields 2.55%. Hagedorn explained his stock's precipitous decline as a case of the analysts getting way ahead of where the Scotts management forecast they would be. He said the company is meeting all of its internal expectations and is growing sales and taking share, but it simply couldn't meet the inflated expectations that the analysts had cooked up. Hagedorn said the lawn and garden business is not for the faint of heart because when it's good, it's "awesomely good," with explosive growth in the spring and summer months. Even with the best supply chain in the business, Scotts is still stressed to its limits as warmer weather approaches, he noted. Hagedorn suggested that investors look at yearly trends and not try and chase expectations on a quarterly basis.
Finally, when asked about America's energy policy, Papa passionately proclaimed that our country could be North American-energy independent in less than 10 years, if only we were to turn loose the technology we already have to utilize our own domestic oil and natural gas resources. He said we have the "chance of a lifetime" and the opportunity is ours to lose by not acting on it. He said all we need is leadership.Cramer continued his support of EOG Resources.
Lightning RoundHere's what Jim Cramer had to say about some of the stocks that callers offered up during the "Mad Money" Lightning Round Wednesday evening: Atmel ( ATML): "I have so many other good ones. I'm going to send you to Intel ( INTC)." Blue Nile ( NILE): "No, too dangerous. I think discretionary goods might be in trouble." Zynga ( ZNGA): "I've been staying away from these recent IPOs. I'm not going to bash it, but I'm also not going to recommend it." AmeriGas Partners ( APU): "No, no. I do not like propane and I'm not going there." World Wrestling Entertainment ( WWE): "No. There's no growth and I need growth."
Am I DiversifiedIn the "Am I Diversified" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets. The first portfolio included CBL & Associates ( CBL), Mack-Cali Realty ( CLI), Health Care REIT ( HCN), Weyerhaeuser ( WY) and Washington Real Estate Investment Trust ( WRE). Cramer said he cannot bless this portfolio since all of the companies are real estate investment trusts, even though they operate in different sectors. The second portfolio's top holdings included Diageo ( DEO), Hershey Foods ( HSY), Progress Energy ( PGN), AT&T ( T) and Altria ( MO). Cramer said this portfolio cannot have two food stocks along with Altria. He recommended swapping out Diageo for a pharmaceutical company like Bristol Myers-Squibb ( BMY). The third portfolio had Capital Product Partners ( CPLP), Two Harbors Investment ( TWO), Sandridge Permian Basin ( PER), Starbucks ( SBUX) and Veeco Instruments ( VECO) as its top five stocks. Cramer said this portfolio was diversified, but added that Veeco could be too speculative.