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Disney reported nothing less than the best quarter in the company's history today, with executives touting that Disney's long-term focus is driving remarkable value. The stock market rewarded Disney for its efforts by sending shares down 3.7% to a valuation of just 15 times those spectacular earnings.
How can that be? Cramer explained that for fund managers focused on the short term, all that matters is the growth, or lack there of, in subscribers of ESPN. Disney's movies, theme parks, Star Wars, none of that matters to these guys, Cramer noted.
But more seasoned investors, those with a longer-term view, will note Disney is not a one-trick pony and has, in fact, reinvigorated itself on many occasions. There was a time in the not-so-distant past when Disney's theme parks were ailing. They were fixed. Other times, the movie studios were faltering. They were fixed. So why would investors not believe that ESPN can be fixed?
Cramer said Disney is a powerhouse of brands like no other, and that's why he's continuing to bet with, and not against, the company.
Executive Decision: David Aldrich
For his "Executive Decision" segment, Cramer spoke with David Aldrich, chairman and CEO of Skyworks Solutions (SWKS) , the communications chipmaker that just delivered a 2-cents-a-share earnings beat but still has shares down 25% for the year and a full 50% from its highs last year.
Aldrich said Skyworks is taking everything it has learned about communicating with smart phones and tablets and applying that technology to cars, entertainment boxes and a host of smart "things" from smoke detectors to light bulbs.
Skyworks has mastered the art of communicating with multiple devices on multiple frequencies and services as the knitting that allows many different devices to talk to one another.
Aldrich said Skyworks is playing in all the right spaces, mainly mobility, connectivity, autos and the Internet of things. That's how his company has been able to grow 15% to 20% a year but still maintain operating margins of 40%.
Cramer said this is one stock that has simply gotten too low.