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Cramer said it's pretty clear the market continues to loathe the oil and gas stocks. Now, thanks to the revelation by JPMorgan Chase (JPM) that the bank has over $44 billion of loans to the oil sector, it's pretty clear the markets will continue to loathe the financials as well.
But what about those cyclical industrial stocks that have been beaten down for months on worries about China? Cramer said after the rumors yesterday that United Technologies (UTX) may be in merger talks, this once-forgotten group just got a whole lot more interesting. If United Tech could catch a bid, that means Eaton (ETN) , another very cheap stock, might catch one, too. Or what about Cummins (CMI) with its 4% yield, or Ingersoll-Rand (IR) , or even John Deere (DE) ? Before yesterday, Cramer would've said "dream on," but today, anything seems possible.
That's why Cramer said he's begun doing some homework on the industrials to start scouting for the real bargains.
Executive Decision: Dan Rosensweig
In his "Executive Decision" segment, Cramer sat down with Dan Rosensweig, president and CEO of Chegg (CHGG) , the textbook rental and student services company that just posted a 2-cents-a-share earnings beat on a 19% decline in revenue with weaker-than-expected guidance that sent shares plunging 35%.
Rosensweig reminded viewers Chegg is in the middle of a transformation from being a paper textbook rental company to one of comprised of eTextbooks and digital services. Making transformations is hard, he said, especially as a public company and in a difficult market. That said, Rosensweig noted Chegg needs to do a better job of explaining itself to analysts.
Rosensweig said many of the accounting changes as part of the transition are revenue recognition issues and don't affect the number of students served or, ultimately, the bottom line.
It is Chegg's digital services, such as online tutoring and scholarship services along with eTextbooks, that will be the future of the company. Rosensweig said digital services have gone from zero to $120 million in revenue in just four years and are growing at 30%.
Cramer said that at just over $3 a share, Chegg has a good story to tell.