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NEW YORK ( TheStreet) -- The markets are at a fulcrum moment, Jim Cramer cautioned his "Mad Money" TV show viewers Thursday, one where the market could swing 1,000 points up or down. The only problem, we just don't know which direction. On one side of the lever are the U.S. markets, a market in recovery, one where earnings are rising, as Wal-Mart ( WMT) proved earlier today, and one where the frenzy over Facebook is reaching a fever pitch. But on the other end of the lever remains Europe, a situation Cramer called "dangerous." He said that people in Greece, Italy and Spain are starting a run on the banks there, taking their money out of the system ahead of what they fear will be a switch from the euro to a currency of far less value. This is a totally rational decision, said Cramer, as Europe has a weak central bank and no U.S.-style TARP program to backstop its banks. So with a market in flux, a market where investors can't know which way the lever will fall, Cramer said investors must stay diversified. They must also raise cash and they should seek the safety of domestic stocks with little to no exposure to Europe, preferably with dividend protection. And when it comes to the Facebook IPO tomorrow, Cramer said the only strategy that makes sense is to buy into the IPO and immediately flip those shares as soon as they begin trading.
Executive DecisionIn the "Executive Decision" segment, Cramer once again spoke with Marc Benioff, chairman and CEO of Salesforce.com ( CRM), the cloud computing giant that's up 32% for the year. Benioff touted Salesforce's most recent quarterly results, noting that the company delivered 38% year-over-year revenue growth as well as a healthy increase in the company's cash flow. He said all of their markets were strong, including the ailing European and Japanese markets. "You don't get these kinds of results without all your markets participating," said Benioff. When asked about how Salesforce stacks up against the competition, Benioff once again noted that business is looking for mobile, social and cloud, three areas on which Salesforce is focused. While other competitors, such as Oracle ( ORCL) and SAP ( SAP), are growing slowly in back-office application software, Salesforce is taking the lead in the front office, helping businesses find customers and close deals.
Finally, when asked about the upcoming Facebook IPO, Benioff said that the world has never seen an application like Facebook, one with almost one billion users. He said the world has never seen the kind of growth that Facebook has had either. Cramer said that investors looking to add growth to their portfolios need to take a close look at Salesforce.com.
Donut WarWho is winning the donut war, Dunkin Brands ( DNKN) or Tim Hortons ( THI)? Cramer performed his own stock market taste test to find out. On the surface, both of these purveyors of donuts and coffee may look the same, but under the frosting, there are significant differences. Cramer said when looking at these companies, the two matrices that matter most are growth and execution. In the growth arena, it would look like Hortons, with its 4,000 locations, would have more room to grow than Dunkin with its 10,000 locations, but that's not the case, said Cramer. While Hortons has almost saturated its home country of Canada, Dunkin is only in 35 states, achieving full saturation in only New England. That's why Dunkin management projects it can triple its store count by 2020. Turning to execution, Cramer said it's also a win for Dunkin, which most recently delivered a 2-cent-a-share earnings beat on higher-than-expected revenue. Hortons, on the other hand, missed estimates by 3 cents a share, citing higher costs. Given that Hortons is a mature company and Dunkin has delivered a 65% return since its IPO last year, Cramer said the win again goes to Dunkin. Finally, Cramer considered price. Here again, Hortons looks better, trading at just 17 times earnings compared to Dunkin's 22 times earnings. But factoring in Dunkin's 16% growth rate with that of Horton's 12%, it's clear that when it comes to donut stocks, America really does "run on Dunkin."
Lightning RoundHere's what Jim Cramer had to say about some of the stocks that callers offered up during the Mad Money "Lightning Round" Thursday evening: Oshkosh Truck ( OSK): "Governments are cutting back. I don't want to own the stock." Canadian Pacific Railway ( CP): "I don't like the rails. They ship a lot of oil and coal, both of which are going lower."
Intuit ( INTU): "It's a great franchise. I don't like to buy this stock after tax season, though." WW Grainger ( GWW): "Grainger is terrific. The fundamentals are good." Walter Industries ( WLT): "I think it's going lower. No one wants coal. I can't recommend a stock where the fundamentals are in decline."
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