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Pricing power. Some companies have it, others don't. Jim Cramer told his Mad Money viewers Wednesday that companies who have pricing power see their stocks rally, but those who don't are fated to tread water at best.
That's why Cramer owns shares of Apple (AAPL) , Alphabet (GOOGL) and Facebook (FB) for his charitable trust, Action Alerts PLUS. Apple, he said, may have released a smaller iPhone this week, but it still commands a premium price. Meanwhile, both Facebook and Google can pretty much charge whatever they want for advertising and companies are happy to pay it.
Tobacco is another industry with pricing power, Cramer said. It's the only industry where the product is literally addictive.
Those without pricing power include the oil companies, where oversupply has crushed pricing, and quick serve restaurants, which have been struggling against McDonald's (MCD) new low-cost menu.
Then there are the drug stocks, where companies struggling against each other in patent wars and against the government, which perpetually accuses them of gouging.
Those with price power flourish, Cramer concluded, but those that can't raise prices flounder.
Blink and You'll Miss It
If it seems like the market has been giving you whiplash lately, you're not alone, Cramer told viewers. It used to take investors days or even weeks to change their mind about a stock, but in today's market those decisions are being made in just hours or even minutes of events occurring.
That's how after yesterday's terrorist attack in Brussels, the markets could sink lower, only to end the day mostly flat to higher by the end of the day. It's also how Nike (NKE) could report what seemingly were good earnings, only to see its shares tank but then quickly recover.
Cramer said these re-valuations on the fly are a new trend that's popping up more and more in the markets, and investors need to keep an eye out for them.
Cramer's Elite 8, Part 1
In honor of March Madness, Cramer unveiled his "Elite Eight" list of the top CEOs in the market today. Every team needs a great coach, he said, and these are truly the best of the best.
First is Honeywell's (HON) Dave Cote, who took the helm in 2002 and has been delivering for shareholders ever since. Cote has installed a culture of constant innovation, planting seeds for the future and publishing five-year plans that the company not only keeps, but exceeds.
Next is McDonald's (MCD) CEO Steve Easterbrook, who has turned around the fast-food giant in record time. By reinvigorating the franchisees and transforming the menu, McDonald's is seeing accelerating same store sales for the first time in ages.
Cramer also praised Jeff Immelt of General Electric (GE) for navigating the industrial giant through the aftermath of Sept. 11 and the financial crisis of 2008 and continuing to refocus the company's efforts. This stock has a lot more room to run, Cramer said.
Rounding out the first four is Microsoft's (MSFT) Satya Nadella, who has transformed an old tech titan from an irrelevant giant to one that's laser focused on growth while still being shareholder friendly. More importantly, Nadella has made Microsoft, well, cool again.
Executive Decision: Manny Chirico
For his "Executive Decision" segment, Cramer sat down with Manny Chirico, chairman and CEO of PVH (PVH) , a stock that shot up 4.9% today after the company reported a 6-cents-a-share earnings beat on a 7% increase in revenue that beat the company's own forecasts.
Chirico said underwear and intimate apparel were both strong drivers this quarter. Growth was challenging in the U.S. but strong in both China and Europe.
When asked about China in particular, Chirico noted Calvin Klein is currently a $275 million business in China, with Tommy Hilfiger being about half of that. Chirico said he thinks each could become a $500 million business.
As for other positives, Chirico said commodity costs continue to be low and PVH's return on investment from its company-owned stores has also been terrific.
Cramer continued his recommendation of PVH.
Sports and Business
In a special interview, Cramer sat down with Brent Celek, entrepreneur and tight end for the Philadelphia Eagles, to discuss football and business.
Celek said his desire to become an entrepreneur stems from wanting his own success and the ability to learn from his mistakes. He said teamwork was one trait he learned from the NFL that translated perfectly to the restaurant business.
When asked why so many football players end up being broke, Celek said that for many, they trust others with their money rather than trying to make it on their own.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
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