Jim Cramer's 'Mad Money' Recap: Tesla Didn't Execute

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NEW YORK ( TheStreet) -- Stocks can't live on growth alone, they need great execution as well, Jim Cramer reminded his "Mad Money" viewers Wednesday as he highlighted the earnings from Tesla Motors ( TSLA), which delivered on earnings but stumbled on execution.

Cramer said with a stock that's up 346% for the year, there's no room for error, which is why a shortage of batteries was enough to send shares skidding. There may be more selling tomorrow, Cramer noted, as another Elon Musk stock, SolarCity ( SCTY), reports earnings. Once the battery issues are resolved, however, Cramer said he expects this "cult stock" to return to the hot seat.

Cramer used the Tesla story to warn investors investing in Twitter's initial public offering Thursday. He said if things are not perfect at Twitter, the moments after it opens may be that stock's high for the year.

Being prudent is restraining, Cramer admitted, but as NPS Pharmaceuticals ( NPSP) and Pioneer Natural Resources ( PXD) showed us today, a well-diversified portfolio is especially needed with stocks up over 100% for the year. Both NPS and Pioneer stocks tumbled today on quarters that were better than expected but not better than expected enough for growth-hungry investors.

On the flip side, Cramer called out Hain Celestial ( HAIN) and Open Table ( OPEN), two companies with great growth and execution. Both stocks were handsomely rewarded for their efforts today.

Surfing Twitter

What do the latest trends from media companies including Yahoo! ( YHOO), AOL ( AOL) and Facebook ( FB) tell us? There's a lot less work going on at work, and a lot more surfing the Web.

Cramer said the latest reports from just about every media outlet showed growth this quarter, something that can only occur if consumers are either watching two screens at once during their free time, or are consuming media and shopping more while at work.

He said that it's true that with so many smartphones and tablets being purchased two or more screens at once is certainly possible. But given the "always on" nature of the American workplace, it's clear that while at work we're all reading, shopping and watching YouTube in between getting a few things done for the boss.

That's why deals like Twitter will work, Cramer concluded. Twitter, like all the other media outlets other than print, has been able to show steady growth quarter after quarter.

Executive Decision: Gary Evans

In the "Executive Decision" segment, Cramer spoke with Gary Evans, chairman and CEO of Magnum Hunter ( MHR), the oil and gas exploration and production company focused on the Bakken, Marcellus and Utica shale regions of the U.S. Shares of Magnum are up 180% for its lows in April.

Evans commented on his company's earlier accounting irregularities by calling the incident the most scary period of his life. He said Magnum was not the first company to fire a "top four" accounting firm, but when new auditors arrived the company was quickly given a clean bill of health and the issues are now in the past.

When asked about valuations, Evans agreed with Cramer that measuring smaller oil producers on an earnings multiple doesn't make a lot of sense. He said using the company's net asset value is a cleaner metric to use. That's especially important given how much Magnum and other drillers' costs have plummeted in recent years. Evans said it used to cost $9 million to drill a well and bring it online, but now that cost is just $6 million, making their returns off the charts.

Finally, when asked about natural gas, Evans said he remained bullish over the long term on natural gas given how cheaply the U.S. can produce it and how valued the commodity is around the globe. "Nothing comes close to the Marcellus," he concluded.

Executive Decision

In his second "Executive Decision" segment, Cramer spoke with Scott Sheffield, chairman and CEO of Pioneer Natural Resources, which delivered disappointing production growth on Monday, prompting an analyst downgrade and a 5.6% slide in the stock today. Shares of Pioneer are still lip 86% for the year.

Sheffield said that despite production ending slightly below plan this quarter, all of Pioneer's wells are producing more than expected and the estimates for how much oil his company can recover are also heading higher. He noted that the Wolfcamp basin where Pioneer is based is now the largest field in North America and the second-largest in the world, behind only Saudi Arabia. The estimates for Wolfcamp will exceed 50 billion barrels of recoverable oil, Sheffield said, and may approach 75 to 100 billion over time.

Turning to the companies' production growth, Sheffield said the company remains on target for 14% growth this year, expanding to 17% to 18% over the next five years. Those estimates, he noted, are with west Texas crude prices falling below $85 a barrel.

Cramer said that Pioneer remains a great growth story.

Lightning Round

In the Lightning Round, Cramer was bullish on Krispy Kreme Doughnuts ( KKD), St Jude Medical ( STJ), Alcan ( AL), Salesforce.com ( CRM) and Rite Aid ( RAD).

Cramer was bearish on J.C. Penney ( JCP), Emerald Oil ( EOX), Edwards Lifesciences ( EW), Chesapeake Energy ( CHK), NetSuite ( N) and Barracuda Networks ( CUDA).

Executive Decision: Francois Nader

In his final "Executive Decision" segment, Cramer sat down with Dr. Francois Nader, president and CEO of orphan drug maker NPS Pharmaceuticals ( NPSP), a stock that was crushed by 15% in today's trading.

Nader said NPS exceeded its internal expectations for the quarter and Wall Street's expectations simply got ahead of themselves. He quipped that his job is to deliver great drugs to patients and not to manage analyst expectations.

Nader also noted that for its main drug, Gattex, the addressable market still sits between 3,000 and 5,000 patients. Yet, NPS currently only has 455 prescriptions for the drug, leaving a lot of marketshare remaining. He said NPS has seen no issues with reimbursements from insurance providers for their drugs, even with their absorb anent price tags, given how much the alternatives costs.

NPS also has opportunities to expand into international markets as well as expanding their indications to include more types of patients.

Cramer said this stock's big pullback has created a great opportunity.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

At the time of publication, Cramer's Action Alerts PLUS had a position in FB.

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