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NEW YORK (TheStreet) -- Investing is all about looking for clues, Jim Cramer told his Mad Money viewers Tuesday. And sometimes, those clues can be as simple as figuring out what people are buying in stores.
In the case of Urban Outfitters (URBN), it appears customers aren't buying a whole lot, as the company posted a disturbing quarter that sent shares down 15% on the day. While the disappointment was a huge shock to investors, similar patterns at both Kohl's (KSS) and DIllards (DDS) suggest that waiting a few days then buying some Urban might be a good move as both these stocks have begun to recover from their lows.
That's not the case with Wal-Mart (WMT), a stock Cramer sees no reason to own, nor Dick's Sporting Goods (DKS), which remains committed to its ailing golf business. Cramer likes Nike (NKE) and Under Armour (UA) better.
When Home Depot (HD) shares slid, Cramer was not surprised, as that stock was priced to perfection. He noted, however, the company cited strong sales in tools, which made him think of Stanley Black & Decker (SWK), as Stanley dominates the tool category. With housing starts and new household formation both on the upswing, things should be good for Stanley and Cramer suggested getting in ahead of when Lowe's (LOW) reports later this week.
Executive Decision: Dr. Martine Rothblatt
For his "Executive Decision" segment, Cramer sat down with Dr. Martine Rothblatt, chairman and co-CEO of United Therapeutics (UTHR), the biotech with four drugs on the market treating pulmonary arterial hypertension.
Rothblatt explained that she first started United Therapeutics after her youngest daughter was diagnosed with a rare for of hypertension and given just three years to live. She said that thanks to their research and development, her daughter continues to survive by taking a pill just a few times a day, as compared to a 24-hour-a-day infusion pump, which was the course of treatment before United Therapeutics.
While pulmonary arterial hypertension is considered a rare disease, there are still over 30,000 patients in the U.S. alone that suffer from it. Rothblatt said that reaching those patients is critical and they've been accomplishing that through patient associations.
Beyond hypertension, however, United Therapeutics also was recently approved for the first-ever treatment for neuroblastoma, a drug that Rothblatt said could generate $100 million a year in revenue.
Even with the stock up 37.5% so far in 2015, Cramer thinks it's inexpensive given this company's fascinating story.
Most people who own shares of Twitter are expecting good news in the short term, either on the earnings front or a possible takeover. But Cramer warned that no acquirer wants to take on the risk of buying a company with slowing growth and mounting losses, especially at Twitter's current valuation.
As for a short-term earnings boost, there are a lot of things Twitter could do, but so far the company hasn't signaled any desire to do any of them.
That adds up to a "buyer beware" situation in the short term, even though Cramer still likes the stock over the long term. He said Twitter could roll out a premium service or a successful advertising program or figure out new ways to reaccelerate user growth. Investors just shouldn't expect any of those things in the short term.
Executive Decision: Doug Parker
Parker defended his decision to take his salary in American Airlines stock by saying that the industry has changed and there's real business out there and his company's stock is once again a real currency to be proud of.
But even with business improving, Parker admitted that some airlines are adding flights in excess of demand, causing pockets of increased competition. It's nothing like the past, he noted, but American stands ready to compete where needed.
Turning to the topic of combining the reservation systems of American and US Airways, Parker said they're ready for the challenge and they need one system in order to realize the synergies of the merger. They have learned from past mistakes, he said, and will be ready.
Finally, when asked about currency pressures, Parker said that while a strong U.S. dollar hurts overseas earnings, it also lowers fuel prices, which averages out to a gain for American.
Executive Decision: Avishai Abrahami
In his third "Executive Decision" segment, Cramer sat down with Avishai Abrahami, co-founder, chairman and CEO of Wix.com (WIX), the Web site hosting provider that raised its full-year guidance two weeks ago, sending its shares up 20% so far this year.
Abrahami explained that when you want to build a Web site, you can either do it yourself from scratch, hire someone else, or use Wix, which makes it super simple and costs only $9 a month to get started. He continued that Wix makes money when customers upgrade to premium sites and services that offer more storage and bandwidth and applications such as ecommerce.
Wix has been growing mainly through word of month, Abrahami noted, with over half of new customers coming from the recommendations of others. Wix currently boasts over 63 million customers with over nine million mobile Web sites.
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