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NEW YORK (TheStreet) -- The markets are turning into a battlefield, Jim Cramer told his Mad Money viewers Wednesday. Fortunately, Cramer can report from the front lines, saying investors need to pay attention to the "pin action" to see what's really worth buying.
Case in point: home goods retailer Wayfair (W - Get Report). Cramer said this stock had been cut in half since its October initial public offering but rallied 14% today after reporting 55% revenue growth this quarter. But the story is not Wayfair, Cramer continued, it's related stocks like Restoration Hardware (RH - Get Report) and Urban Outfitters (URBN - Get Report), both of which rallied on the news, that matter.
Then there was the news that McDonald's (MCD - Get Report) is looking to go antibiotic-free with their chicken. That news makes shares of Hain Celestial (HAIN - Get Report) and WhiteWave Foods (WWAV) more attractive, said Cramer, along with McDonald's spinoff Chipotle Mexican Grill (CMG - Get Report).
Cramer said this positive pin action was also seen in the biotech sector today, as well as in the semiconductor space. He told viewers to watch the stocks that stabilized today, because those will be the stocks to buy tomorrow.
Executive Decision: Dave Cote
For his "Executive Decision" segment, Cramer sat down on location with Dave Cote, chairman and CEO of Honeywell (HON - Get Report), at the company's analyst day for the latest read on the company and on the global economy.
Cote said he's very excited about the outlook for Honeywell as his company has great new products in every one of its business lines. He said Honeywell's 22,000 engineers are taking a smart approach to our new connected world, taking a fresh look as connect homes, buildings, factories, workers, cars, planes and more.
Cote was also bullish on China, a country he said is becoming an economic powerhouse. He said it's important that Honeywell is able to beat its Chinese competitors in China because if it can't compete there, Honeywell won't stand a chance elsewhere in the world.
Turning to the topic of cash, Cote explained that Honeywell now generates a ton of cash, enough to fund its reinvestment efforts, along with mergers and acquisitions, dividends and stock buybacks.
Finally, when asked about oil prices, Cote explained that he sees two markets for oil. He said upstream, oil drillers will need to cut back drilling if prices stay low. But downstream, the refiners actually win, as cheaper oil means more economic activity. He said the savings at the pump really matters for families and small businesses.
Cramer said that Honeywell remains one of his favorite industrial companies.
Winning With Biotech
There are still lots of ways to win with biotech, Cramer told viewers, as he circled back to the sector to reiterate his favorites.
Cramer once again gave the nod to his "four horsemen," Gilead Sciences (GILD - Get Report), Biogen Idec (BIIB - Get Report), Celgene (CELG - Get Report) and Regeneron (REGN - Get Report). He said that Gilead is a strong buy trading at just 12 times earnings, while Biogen Idec has a catalyst coming March 20. Meanwhile, both Celgene and Regeneron may be stalled, but Cramer said he's not losing focus of the many blockbuster drugs yet to come.
Among the smaller biotech names, Cramer said he still likes Biomarin (BMRN - Get Report), Isis Pharmaceuticals (ISIS), Pharmacyclics (PCYC), Receptos (RCPT) and Alkermes (ALKS - Get Report). He noted that Biomarin is simply a growth story, while Pharmacyclics might be bought by partner Johnson & Johnson (JNJ - Get Report). Alkermes is a steal, according to Cramer, while Receptos has the potential for $8 billion in sales from its many offerings.
Executive Decision: Robert Abernathy
In his second "Executive Decision" segment, Cramer spoke with Robert Abernathy, chairman and CEO of Halyard Health (HYH), a stock Cramer owns for his charitable trust, Action Alerts PLUS. Shares of Halyard are up 18% since Cramer last checked in back in early November.
Abernathy said that Halyard, a recent spinoff from Kimberly-Clark (KMB - Get Report), is focused in three areas: preventing infection, managing pain and speeding recovery. Among the three, Abernathy noted that pain management, led by its Coolief cooled radio frequency treatments, is by far the company's fastest-growing segment.
When asked about its strategy as an independent company, Abernathy said Halyard plans to spend its first year getting its footing, but by year two it will be "ready to move" on mergers and acquisitions, thanks in part to its $149 million cash position.
Cramer said that Halyard is a shining example of what investors should be looking for, a small company inside of a larger one that has the potential to become a big company all on its own.
In the Lightning Round, Cramer was bullish on First Solar (FSLR - Get Report), Cypress Semiconductor (CY - Get Report), Avago Technologie (AVGO - Get Report), Skyworks Solutions (SWKS - Get Report), NXP Semiconductors (NXPI - Get Report), DST Systems (DST) and VF Corp (VFC - Get Report).
Executive Decision: Tom Quinlan
In a third "Executive Decision" segment, Cramer sat down with Tom Quinlan, president and CEO of R.R. Donnelley (RRD - Get Report), a stock just off its 52-week high with a 5.3% yield. Shares of Donnelley are 28% since Cramer last spoke with Quinlan in mid-December.
Quinlan said in today's digital world, print items like catalogs are not going away. He said the digital world will still have printed items and Donnelley is providing its customers a connected experience for both.
Quinlan added that for companies, it's all about delivering the right message at the right time in a cost-effective manner. Sometimes that will be digitally but other times it won't. That's why he's excited about Donnelley's most recent acquisition, which has a terrific workforce and is the leader in religious book printing. That, he said, is one example where print will be around for years to come.
Cramer said investors looking for both growth and income need to look no further than R.R. Donnelley.
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-- Written by Scott Rutt in Washington, D.C.