Cramer's 'Mad Money' Recap: Compromise Already!
What happens when investors don't understand what they own? When they let fear control their decisions instead of opportunity? You get the stock of Apple (AAPL) , said Cramer, a stock that's become a de facto barometer for the entire market.
That's why he took a few moments to dive into this Action Alerts PLUS holding and explain what's really going on.
Cramer said the decline in Apple is all about taxes because tax rates on capital gains will be heading higher as of Jan 1. That means investors would be prudent to lock in their gains now, at lower rates, rather than wait and pay higher rates on Jan. 2. But what happens after Jan. 2?
After the tax-related selling is over, Cramer said, Apple's technology, rather than its technicals, will once again be in control as investors realize sales of iPhones and iPads are on fire and this great technology company is trading at the lowest multiple in all of the S&P 500 .
Four weeks from now, said Cramer, everything that is against the stock now will be in its favor, and only then will shares resume their trek higher.
In the Lightning Round, Cramer was bullish on eBay (EBAY) , CenturyLink (CTL) , Sandstorm Gold (SAND) , SPDR Gold Shares (GLD) , Abbott Laboratories (ABT) , Starbucks (SBUX) and Commerce Bancshares (CBSH) .
Building a Better Company
In a second "Executive Decision" segment, Cramer spoke with Tom Sullivan, chairman and founder of Lumber Liquidators (LL) , a housing-related stock that's up 200% so far this year, trading just six points off its high after an earnings beat of 12 cents on a 12% rise in same store-sales.
Sullivan said Lumber Liquidators offers customers several advantages over traditional home improvement stores -- a wider selection of products, a more knowledgable staff and prices that are up to 50% less. The company supports both do-it-yourself projects and can provide provide installation services.
Sullivan noted lumber is in great supply and getting enough product has never been an issue for his company. He said the decision to slow store growth was made to "get it right," and Lumber Liquidators is revamping many of its locations to offer more tools and accessories to help homeowners complete their projects easier.
When asked about the recession, Sullivan said Lumber Liquidators still saw a good amount of business but did notice that many homeowners chose to do smaller projects or do bigger ones in stages over time rather than an entire house all at once. He said his company's Bellawood brand is now known nationwide.
Cramer said Lumber Liquidators is an under-recognized company that is directly tied to the return of the housing market.