Cramer's 'Mad Money' Recap: A Divided Market
Investors have lots of questions about the future at Starbucks (SBUX) , Cramer told viewers, but the company's analyst meeting is Wednesday so those questions will soon have answers. He said this company's bi-annual meeting is an important one as Starbucks made good on all its promises from 2010 and should have a promising roadmap through 2014.
Cramer expects to hear how the U.S. market is doing, a market that still accounts for 75% of company sales. He also expects to hear about international sales, including Europe and China as well as the company's debut into India. There are also questions surrounding Starbucks' single-serve k-cup business and how that relates to its new Verismo line of single-serve brewers.
In addition, there is Starbucks' proposed merger with Teavana (TEA) , which is steeped in controversy, causing a field day for the short-sellers.
Starbucks has plenty of room for growth, both domestically and abroad. The company is also flush with cash. Cramer said with the price of coffee now 30% off its highs there are many things going right for this company, which currently trades at just 23.8 times earnings with a 19% growth rate.
In the Lightning Round, Cramer was bullish on Coca-Cola (KO) , Sprint Nextel (S) , Kinder Morgan Energy Partners (KMP) , Linn Energy (LINE) , Pepsico (PEP) , Berkshire Hathaway (BRK.B) and Kellogg (K) .
In the "Executive Decision" segment, Cramer sat down with Russell Goldsmith, chairman and CEO of City National (CYN) , a Los Angeles-based business bank that also offers wealth management services.
Goldsmith said that many of City National's customers fall into two camps when it comes to the looming fiscal cliff. He said that many are simply sitting on their hands, not hiring, not investing and not borrowing. Uncertainty breeds caution, Goldsmith noted, which is why many are waiting to see what the new rules will be before moving forward.
But a few customers see opportunity, even in an uncertain market, and City National has been making loans to those customers, primarily in the technology and entertainment sectors.
Goldsmith also commented on California's growing economy. He said his state is now number one in job creation and unemployment is finally coming down thanks to some budget stability at the state level. You can't have an American recovery without California, Goldsmith continued.
Turning back to the business at City National, Goldsmith said his bank continues to have a strong balance sheet and has been making smart acquisitions to bolster its already strong wealth management business. He expects the U.S. economy to pick up in the second half of 2013.
Cramer continued his recommendation of City National, one of the few growth banks he follows.