Finally, there was also positive news from another troubled region of the globe, Europe, where Bunch noted that PPG saw an encouraging fourth quarter with no volume declines. He said the European auto business is starting to show signs of life, which is very encouraging.
With all of those positives, Bunch said PPG has plenty of cash on hand for acquisitions or returns of capital to shareholders in 2014. Cramer said that even with some weakness in China, PPG has a lot to like elsewhere in the world.
A big part of investing is knowing who to trust, Cramer told viewers in his Thursday "Sell Block" segment. That's why when colleague Herb Greenberg raised the red flag on Valeant Pharmaceuticals (VRX), Cramer took notice.
Shares of Valeant are up 112% over the past 12 months, and this beloved stock currently has 16 buy ratings, two holds and just one sell -- making Greenberg's bearish case the minority view.
But according to Greenberg, we've seen the Valeant story many times before and it always ends very badly for shareholders. At issue: Valeant's voracious appetite for growth via acquisition. The company has done no fewer than 60 acquisitions in the past six years but, as Greenberg noted, the company will need many, many more to achieve its self-stated goal of becoming a top-five pharma player by 2016.
Growing by acquisition is not inherently a bad thing. What was worrisome to Greenberg was the fact that Valeant's organic growth actually fell by 9% last quarter, with guidance coming in at the low end of expectations. With organic growth faltering, Valeant will have no choice but to start issuing more stock to pay for its continued growth, thereby diluting existing shareholders. Otherwise, the company risks having its growth stall, a scenario which would also be determential to shareholders.
Cramer said the term for companies that grow only via acquisition is a "roll-up" company, and while there are some success stories, they all hinge on making successful acquisitions that continue to grow organically afterwards. That's why Cramer said if Greenberg is worried, he is, too.