Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
NEW YORK ( TheStreet) -- Not all stock sales are created equal, Jim Cramer told "Mad Money" viewers Thursday. He compared the selling off in two names, railroad Norfolk Southern ( NSC) and home-goods retailer Bed Bath & Beyond ( BBBY). Cramer said that while both of these stocks fell over $6 a share today, it's the job of every good investor to determine if the declines are a buying opportunity or a precursor of bad things to come. In the case of Norfolk Southern, the company pre-announced that it would miss earnings and miss big. The culprit, a sizable drop off in demand for coal. Cramer said the bulls argue that once cold weather returns, the demand for coal will rebound, but he feels otherwise. The reality of the situation is President Obama doesn't support dirty coal as a fuel for baseline power generation in our country, Cramer said. With natural gas cleaner and now cheaper, it's likely there won't be any new coal plants built, putting coal into secular decline. But in the case of Bed Bath & Beyond, the issue is declining same-store sales, which fell from 5% growth to just 3%. Cramer said this retailer should be doing well with housing on the mend. But with a pullback in growth and an ugly chart, many investors are shying away from the company. So which company can be bought? Cramer said that with coal in secular decline, Norfolk Southern will be a train wreck, pardon the pun, for many years to come. Bed Bath and Beyond, however, has shrewd management that's faced this situation before and prevailed, making today's decline a buying opportunity for smart investors.
Getting in on the ActionInvestors should always be looking for great long-term stories, Cramer told viewers as he featured Five Below ( FIVE), the teen-oriented discount retailer where everything in the store is less than $5. Cramer told investors to get in on the Five Below initial public offering back on July 19. Shares came public at $17 a share and since then have doubled, rising 101%. Even if investors weren't able to get in on the IPO, shares are still up a handsome 31% thus far.
Executive DecisionIn the "Executive Decision" segment, Cramer spoke with Patrick Doyle, president and CEO of Domino's Pizza ( DPZ), a stock that's come under fire recently as shares have seemingly stalled, up just 4% for the year. Doyle said Domino's remains an international growth story as the company is now slightly bigger outside the U.S. than it is inside the U.S. He said Domino's will be celebrating its 10,000th location in Istanbul, Turkey, later this week, making it only the eighth restaurant chain in the world to achieve that milestone. Doyle said restaurants need to have an international story in order to thrive in today's market, and Domino's has a proven that their concept works and they have a lot of room to grow. He noted that Domino's only has 100 locations in India, a country with over one billion people, and those locations continue to grow in the double digits. Other hot spots for Domino's include Turkey, where the company has 250 stores, and France, a country, Doyle noted, that "eats a lot more pizza than people think." He noted that Domino's continues to represent a good value, which helps it thrive even in weaker economies. Doyle closed by saying Domino's is always looking for ways to reward shareholders through additional dividends and stock buybacks. Cramer said while the stock may be stalled, Domino's is still a great story.