Jim Cramer's 'Mad Money' Recap: Playing the Dip for Profit

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

NEW YORK (TheStreet) -- Some dips are made to be bought. Those were Jim Cramer's thoughts Thursday on Mad Money as he taught viewers how to take advantage of "buyable" dips to make some money.

Cramer reminded viewers the markets are made up of traders and investors. Traders, he said, look for catalysts like a potential upside earnings report, then sell their positions after the catalyst has occurred, whether or not they were correct. Investors, on the other hand, look at the big picture and focus on longer-term decision making.

That's why when Google (GOOGL), a stock Cramer owns for his charitable trust, Action Alerts PLUS, "missed" earnings, the stock sold off. Traders were simply cashing in their chips.

But Cramer said that missing estimates isn't a big deal for Google as it's one of the few companies that doesn't offer its own guidance. That means the estimates it "missed" were merely analysts' best guesses.

What is important, however, is that Google trades for just 17 times earnings, but has a 19% growth rate, making it very inexpensive, and even more so with today's short-term sell off. Investors should be seizing this opportunity, he said, to start or add to their positions.

The same applies to IBM (IBM), another AAP holding, Cramer continued, and another company that missed estimates and was sold off by traders. Cramer said one man's trash is indeed another man's treasure and IBM is now a diamond in the rough for those investors with a little patience.

Executive Decision: Nick Pinchuk

For his "Executive Decision" segment, Cramer sat down with Nick Pinchuk, chairman, president and CEO of Snap-on Tools (SNA), which just delivered an eight-cents-a-share earnings beat on better-than-expected revenue. Shares of Snap-on are up 23% since Cramer last spoke with Pinchuk in July.

Pinchuk said he thinks of Snap-on as a technology company, one that is constantly innovating. The company has learned that many of its automotive tools translate well into other industries, like aerospace. He said Snap-on's new smart toolbox is alerting airplane mechanics when tools are missing and may have been left inside an engine, for example.

Pinchuk was also bullish on Europe, with sales in France, Germany and Spain all on the rebound. During the recession, Pinchuk said he had faith that growth would return; instead of shuttering production, he focused on efficiency, a decision that's paying off big now.

When asked about China, Pinchuk explained that unlike the U.S., where cars on the road average 11.5 years old, in China they're mostly new, meaning the repair wave is only just beginning.

Finally, Pinchuk touted the oil and gas industry as another area of growth. He said Snap-on is making tools that no one else makes for that growing sector of our economy.

Cramer said he remains a big fan of Snap-on.

Executive Decision: John McAvoy

In his second "Executive Decision" segment, Cramer sat down with John McAvoy, president and CEO of Consolidated Edison (ED), the New York-based utility with a 4.5% dividend yield.

McAvoy said he's probably the only CEO who will ever come out and encourage people to use less of his company's product, but that's exactly what ConEd is doing with many new "smart technology" initiatives. He showed off new smart wifi thermostats and smart air conditioning controllers specifically made for window units, both of which help customers use less energy.

When asked about solar energy, McAvoy said ConEd wants customers to make any energy choices they want; while Con Ed is not yet in the solar installation market, it will help customers tie their solar systems into ConEd's network. ConEd currently has 400 megawatts of of solar-generated capacity on its grid.

Turning to the issue of an aging infrastructure, McAvoy said ConEd has an aggressive renewal program that invests $2.5 billion a year into upgrading infrastructure. He said ConEd also upgrades about 800 to 1,000 buildings a year from costly oil heat to cleaner and more efficient natural gas systems.

Cramer said investors looking for both consistency and yield should have ConEd in their portfolios.

CNBC Silver

Celebrating the 25th anniversary of CNBC, Cramer took a moment to talk about how business has changed over the past 25 years, and what it has meant to him to be a part of it.

Cramer said when CNBC first started he was skeptical the new network would ever work. Back then, he said, the notion of having a TV in your office and watching TV while you worked was ludicrous. But business news was very limited back then, and CNBC soon proved its worth and gained traction.

Cramer credited the late CNBC anchor Mark Haines with finally getting him to appear as a guest host on "Squawk Box," an event which forever cemented Cramer as a fixture on the network. Gone were the days of waiting for tomorrow's newspaper for today's news, he said, CNBC broke stories in realtime.

Cramer said he's proud of what CNBC has accomplished over its first 25 years. He said every day the network aims to teach, educate and hold people accountable. Nowadays, if you're working on Wall Street, you'd get fired for NOT watching CNBC.

Lightning Round

In the Lightning Round, Cramer was bullish on BlackRock (BLK), SunEdison (SUNE), First Solar (FSLR), Paccar (PCAR) and Whole Foods Markets (WFM).

Cramer was bearish on Hologic (HOLX), MannKind (MNKD) and Isis Pharmaceuticals (ISIS).

Executive Decision: Beth Mooney

In his third "Executive Decision" segment, Cramer spoke with Beth Mooney, chairman and CEO of KeyCorp (KEY), which just turned in a two-cents-a-share earnings beat on a 4% rise in loan growth.

Mooney said commercial lending was especially strong in the quarter, up 9%, as Key wins business across the board. She said energy, health care and technology were all big sectors for Key, and the strength was seen across its geographic footprint. Mooney also noted a lot of the natural gas and shale boom is "right in their back yard."

When asked about interest rates, Mooney explained that any rise in rates will be great for banks, but much of Key's success stems from "back to basics" lending that focuses on strong FICO scores and low loan-to-value metrics.

Mooney also touted Key's ability to return capital to shareholders as one of the key reasons investors love their bank.

Cramer reiterated his recommendation of KeyCorp.

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

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

-- 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 positions in GOOGL, IBM and WFM.

More from Jim Cramer

Jim Cramer's Investing Rule #2: It's OK to Pay Taxes

Jim Cramer's Investing Rule #2: It's OK to Pay Taxes

Snap, Gilead Sciences, Cronos Group: 'Mad Money' Lightning Round

Snap, Gilead Sciences, Cronos Group: 'Mad Money' Lightning Round

The Trouble With Trump's Tariffs: Cramer's 'Mad Money' Recap (Friday 6/22/18)

The Trouble With Trump's Tariffs: Cramer's 'Mad Money' Recap (Friday 6/22/18)

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Jim Cramer: Some Industrials Stocks Are Becoming Great Values

Jim Cramer: Some Industrials Stocks Are Becoming Great Values