Cramer's 'Mad Money' Recap: A Moment in the Sun

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NEW YORK ( TheStreet) -- The most beaten down of stocks finally got their day in the sun, Jim Cramer said Wednesday. He told "Mad Money" viewers the negativity surrounding many of these companies has been greatly exaggerated.

Exhibit number one: Boeing ( BA), a stock Cramer owns for his charitable trust, Action Alerts PLUS . Cramer said that despite the company telling investors it was doing well, investors chose to take their cues from rival Airbus.

This turned out to be a big mistake as Airbus' problems turned out to only be with Airbus while Boeing was able to deliver a huge earnings beat on monster revenue that forced it to raise full-year guidance.

Exhibit number two: Caterpillar ( CAT), another stock that had been decimated by the markets, down from a high of $116 a share to just $80. But after the heavy-equipment maker reported less-than-dismal results, shares immediately popped $3. And why shouldn't they? asked Cramer. If things do get better, such as affordable oil prices and a new U.S. highway bill, won't that create positive momentum for Caterpillar?

Whether it was Broadcom ( BRCM) in the semiconductor space or Pepsico ( PEP) in soft drinks, investors have simply gotten too negative, said Cramer. That sentiment could be seen in stocks from Whole Foods Markets ( WFM) to Akamai ( AKAM), both of which also reported fantastic quarters.

Cramer said that, yes, there is no room for error in this market, as Apple ( AAPL), another Action Alerts PLUS holding, and Buffalo Wild Wings ( BWLD) has proven. But that's no reason to discount the entire market.

Wild About Wings

In the first "Executive Decision" segment, Cramer spoke with Sally Smith, president and CEO of Buffalo Wild Wings, a stock that shed 10.7% Wednesday after it reported an earnings miss of six cents a share on light revenue.

Smith said that while 2011 saw chicken wings at some of their lowest prices ever, 2012 has become the exact opposite, with wing prices the highest she's ever seen as a result of U.S. drought conditions. Smith said while she doesn't expect the record high prices to become permanent, there likely won't be any easing in the second half of this year.

When asked about the business overall, Smith noted that Buffalo Wild Wings is not seeing customers opt to stay home. She said that sporting events remain a popular draw for the restaurant chain and the menu still offers a great value. That's why same-store sales for July are already trending up 6.8%.

Turning to another possible negative for the company, calories, Smith said Buffalo Wild Wings decided to put calorie and nutrition information on its menus a full 18 months ahead of federal requirements to do so. She said customers don't necessarily come to the restaurants to eat healthy, so they're not seeing any decline in traffic as a result of the decision.

Cramer noted that Buffalo Wild Wings has the identical same-store sales growth as Panera Bread ( PNRA), yet Panera shares are soaring while Buffalo Wild Wings shares are floundering. He said the company remains a terrific opportunity for investors.

Phone Vs. Phone

"In yield we trust," Cramer told viewers as he pitted two high-yielding telecom companies, AT&T ( T) and Verizon ( VZ), against each other to see which one is best for your portfolio. He said that while on the surface both companies may appear the same, in reality they're actually quite different.

When it comes to wireless, both companies reported strong results this past quarter. Both had similar churn rates and solid gross margins, said Cramer, making it a virtual tie. However, AT&T owns 100% of its wireless business, but Verizon only owns 55%. That key point, he said, gives the edge to AT&T.

When comparing dividend, it's once again a wash. AT&T now sports a 5% yield compared to Verizon's 4.5% yield. Both companies also have similar valuations, but only if you look at the PEG ratios, noted Cramer, and not just the price earnings multiples, which don't take into account a company's growth rate.

Turning to the company's other businesses, A&T has the advantage with its U-verse network, while Verizon is floundering a bit with it's FiOS offerings. Verizon, however, has the advantage when it comes to the amount of wireless spectrum it owns. AT&T takes a win with its data center business, though, and also has a huge head start when it comes to the iPhone.

Cramer said when you add up all of these points, there's only one stock to buy and that's AT&T given its higher yield and its growth potential given that it owns 100% of its wireless operations.

Lightening Round

Here's what Cramer had to say about callers' stocks during the "Lightning Round":

First Solar ( FSLR): "Sell, sell, sell. "

Nike ( NKE): "I think there are many reasons why Nike is good to go. I want to be a buyer."

Sherwin-Williams ( SHW): "I think we should go back to Sherwin-Williams. I think it can go still higher."

Time Warner ( TWX): "I think this is one of the most undervalued stocks out there. I think they should be dramatically higher."

CNO Financial ( CNO): "This is an insurance company and I only like American International Group ( AIG) in that group. This one is not for me."

Lions Gate Entertainment ( LGF): "I'm reiterating that Lion's Gate represents terrific value here at $13."

Citigroup ( C): "I think it's inexpensive, but so what? Its time is not yet here. It's not right to buy yet."

Caterpillar: "I think people are worried about Europe. That stock deserves better. "

Executive Decision

In the second "Executive Decision" segment, Cramer spoke with Scott McGregor, president and CEO of chipmaker Broadcom, a company that surprised Wall Street Wednesday with an earnings beat of 5 cents a share on record revenues.

McGregor said that what makes Broadcom unique from other semiconductor companies is its breadth of technology. He said his company can put multiple technologies onto a single, integrated chip that lowers costs, increases performance and uses less power than competitors. That's why for Broadcom, new product cycles are trumping any weakness in the economic cycle.

One of the leading drivers for Broadcom is smartphones, said McGregor, and as more and more people upgrade to smartphones, Broadcom will continue to prosper. The company is also taking market share and expanding its markets for TV set-top boxes, he said.

When asked about even more new products on the horizon, McGregor said that Broadcom makes one to two acquisitions every quarter to help bolster the throughput and security of its chips. He said the fifth generation of WiFi technology will be debuting in early 2013 and will offer consumers twice the performance and range of current WiFi chipsets.

Cramer once again recommended Broadcom as a leader in a very difficult business.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer gave his take on Apple following the stock's $25 haircut and seemingly cloudy future.

Cramer reminded viewers that whenever they have a high-dollar stock, put things into perspective by dividing by 10. So instead of a $600 stock falling $25, you have a $60 stock that's fallen just $2.50.

Apple is still only selling at 11 times next year's earnings, said Cramer, lower than Procter & Gamble ( PG) and Johnson & Johnson ( JNJ), companies that are growing far slower than Apple.

Are there concerns about weakness in Europe, increased competition and declining carrier subsidies for the iPhone? Sure, said Cramer, but the new estimates now reflect those concerns.

What's not included in the estimates, however, is an all-new iPhone slated for later this year, continuing strong iPad sales and the possibility of an all-new AppleTV.

That's why Cramer reiterated that investors must own -- not rent or trade -- Apple and be buyers on this rare dip in the company's stock price.

--Written by Scott Rutt in Washington, D.C.

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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, AIG, BA, BRCM and NKE.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC Universal or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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