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When fear trumps rational thinking, that's when sellers remorse can set in, Jim Cramer told his Mad Money viewers Thursday. Worry will only keep you from making money, Cramer continued, as he highlighted five stocks that plummeted on earnings, only to rebound sharply afterwards.
Kimberly-Clark (KMB - Get Report) was the first stock on Cramer's list because shares fell from $127 to $122 upon its earnings release, only to rebound to $133, an all-time high, proving the sellers dead wrong.
Still other stocks, like Allergan (AGN - Get Report) and Salesforce.com (CRM - Get Report) both proved the short-sellers wrong when they rose 11 points and 11%, respectively. Even the analysts got the narratives wrong on these stocks, Cramer noted.
Executive Decision: Patrick Doyle
For his "Executive Decision" segment, Cramer spoke with Patrick Doyle, president and CEO of Dominos Pizza (DPZ - Get Report) , which today delivered a 5-cents-a-share earnings beat on a 15% rise in revenue and a stellar 10.7% rise in same-store sales. Shares of Dominos closed higher by 13% at a new all-time high.
Doyle said Dominos is firing on all cylinders, with food, service, technology and advertising all driving their business forward thanks to excellent execution. He said Dominos' franchisees are also excited and can feel the momentum.
Doyle also spoke to value as another driving force at Dominos. The chain hasn't raised the price on their primary offerings for over five years and customers always know what they're going to get.
Cramer said Dominos is everything an investor could want out of a stock.
Not so Supervalu
When it comes to stocks, cheap is not enough, Cramer reminded viewers, as he chronicled the rise and fall -- or more accurately the fall, rise and fall -- of supermarket chain Supervalu (SVU) .
Shares of Supervalu had fallen from $50 to just one dollar in the years leading up to and during the recession. But then, as if back from the dead, a turnaround ensued that rallied shares up 614% from 2013 through the middle of 2015. But just as quickly as the rally came, it went, with shares ultimately closing down 30% by the end of 2015 and another 30% so far this year.
So what's going on at Supervalu? Cramer said after completing some high-priced acquisitions and weathering the recession that immediately followed, Supervalu was able to stay alive, restructure its operations and its debt and begin to turn itself around. The company saw higher revenues, improving margins and strong same-store sales growths that kept investors piling in.
But Supervalu was nothing more than a turnaround story. When revenue missed estimates in mid-2015, institutional investors began heading for the exits and haven't looked back.
Best Value Wins
Whoever offers the best value wins. That may seem like common sense, but eight years after the great recession, consumers haven't yet forgotten this important lesson.
Even with gas prices at record lows and more money flowing into consumers' pockets, the restaurants and retailers that offer the most value have proven to be the biggest winners this quarter.
The same applies to restaurants, with both Popeyes Louisiana Kitchen (PLKI) and Jack in the Box (JACK - Get Report) citing increased competition from McDonald's (MCD - Get Report) and Wendy's (WEN - Get Report) .
In the Lightning Round, Cramer was bullish on Cedar Fair (FUN - Get Report) , Six Flags (SIX - Get Report) , Weyerhaeuser (WY - Get Report) , First Solar (FSLR - Get Report) , AMN Healthcare (AHS) , Dominion Resources (D - Get Report) , American Electric Power (AEP - Get Report) and Consolidated Edison (ED - Get Report) .
Am I Diversified?
In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.
Cramer said he wanted to see no Chinese stocks in this portfolio to be better diversified.
The second portfolio's top holdings included Nike (NKE - Get Report) , Foot Locker (FL - Get Report) , Twitter (TWTR - Get Report) , Microsoft (MSFT - Get Report) and T-Mobile US (TMUS - Get Report) .
Cramer said this portfolio can't have both Nike and Foot Locker, nor both Microsoft and Twitter. He advised selling Foot Locker and Twitter and adding a drug stock and an industrial.
The third portfolio had Honeywell (HON - Get Report) , Home Depot (HD - Get Report) , Waste Management (WM - Get Report) , Ford (F - Get Report) and Coca-Cola (KO - Get Report) as its top five stocks.
Cramer said this portfolio was properly diversified.
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