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"Sell in May and go away," isn't an investment strategy, it's just a stupid limerick, Jim Cramer told his Mad Money viewers Tuesday. Perhaps a better adage would be to sell what's run too much and keep what's valuable. That may not rhyme, Cramer admitted, but it certainly makes more sense.
Cramer told viewers to stay grounded and focus on what matters, mainly the three big bull trends in the market right now. They include oil going higher, China bottoming and the U.S. dollar weakening. These trends are not in force every day, Cramer said, but that doesn't mean they're not alive and well.
Cramer also called out the run in Clorox (CLX - Get Report) to all-time highs as bullish for the consumer packaged goods stocks. Meanwhile, Pfizer (PFE - Get Report) was up 2.7% after a gigantic quarter and even the embattled Valeant Pharmaceuticals (VRX) posted a nice gain of 9.6%.
With these major bull trends in place, Cramer concluded there will be a lot more moves like we saw today in the days and months ahead. The moves won't be in a straight line, but that doesn't mean investors should simply "go away."
Not all revenue is created equal, Cramer told viewers, and service revenue is turning out to be revenue that rules them all. Services are slowly becoming assets in the minds of customers, Cramer explained.
Costco has service revenue, Cramer continued, and the company's annual membership fee is something its customers can't live without. So, too, is Netflix (NFLX - Get Report) , a monthly service that many customers would likely pay double for and still see as a value.
Finally, there's Apple (AAPL - Get Report) , a stock Cramer owns for his charitable trust, Action Alerts PLUS. When Cramer interviewed Apple CEO Tim Cook on Monday's Mad Money, Cook said Apple's relationship with its customers only begins when they purchase an iPhone. They also buy apps and music, rent movies and backup their photos to the cloud. Because loyalty to Apple is so high, Cook said customers are more likely to upgrade other Apple devices.
That's why Cramer said he's bullish on all of these companies and reiterated that investors should just own Apple for the long term.
Tim Cook on What Apple Stands For
For his "Executive Decision" segment, Cramer offered up more of last night's exclusive interview with Apple CEO Tim Cook.
When asked what Apple stands for, Cook said Apple is about building the best products it can to enrich people's lives and he's most proud of the products that bring out the best in people. But Apple also believes in conducting business in a right and just way, which means caring about its employees, human rights, the environment and privacy.
Cook also added that our government in the U.S. has become more and more dysfunctional, which means the responsibility for promoting change falls on citizens and corporations to stand up and do what's right.
Finally, when asked who he admired most, Cook responded that he has the most love and respect for the late Steve Jobs who helped transform Apple into what it is today. He added that people who have fought for human rights, sometimes risking their own lives in the process, also top his list.
Cramer said that Apple is not a company that has peaked and is going to fade away as some analysts predict. He said Apple's future is brighter than many people think.
Executive Decision: T.J. Rodgers
In his second "Executive Decision" segment, Cramer checked in with T.J. Rodgers, founder and former CEO of Cypress Semiconductor (CY - Get Report) , a stock that's rebounded 50% from its lows earlier this year but is still well off its highs. Shares of Cypress currently sport a 4.7% dividend yield.
Rodgers clarified his position at Cypress, saying that while he stepped down as CEO, he will remain on the company's board and will continue to work on Cypress' biggest projects and hottest technologies. He said the move was a planned event, although it may have come across as sudden to investors.
Rodgers said he remains very bullish on Cypress' outlook and continues to buy more shares of what he called a very undervalued company. He said their recent acquisitions complete the company's product portfolio and there will be many exciting products ahead.
Cramer said he's sticking with Rodgers and sticking with Cypress.
In the Lightning Round, Cramer was bullish on Union Pacific (UNP - Get Report) , Norfolk Southern (NSC - Get Report) , Treehouse Foods (THS - Get Report) , Starbucks (SBUX - Get Report) , Occidental Petroleum (OXY - Get Report) and CoreSite Realty (COR - Get Report) .
Cramer was bearish on CSX (CSX - Get Report) , DineEquity (DIN - Get Report) , Bank of Internet (BOFI) , Seagate Technology (STX - Get Report) , Chesapeake Energy (CHK - Get Report) and Tallgrass Energy Partners (TEP) .
Executive Decision: Bill Tauscher
In his third "Executive Decision" segment, Cramer sat down with Bill Tauscher, chairman of gift card purveyor Blackhawk Network (HAWK) , which posted a 14-cents-a-share earnings beat last week but offered tepid guidance for the rest of 2016.
Tauscher explained that while many big retailers successfully made the transition to accepting newer EMV-compliant credit and debit cards by last October's deadline, many grocery stores, where most Blackhawk cards are sold, did not. That means fraud is now concentrated among those retailers who still accept the older payments, which has led to many grocery stores now implementing restrictions on how gift cards are sold.
Tauscher said retailers hate putting up roadblocks for their customers, but he said this is a 2016 event that will largely be fixed by Sept. 30, when 90% of Blackhawk's outlets will be EMV complaint.
Other than the disruption at some locations, Tauscher said Blackhawk is performing very well and is beating every other metric in its plan.
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