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Pullback like an unexpected gift: Cramer

Friday, 7 Feb 2014 | 6:28 PM ET
Wyndham CEO: Not seeing a slowdown
Friday, 7 Feb 2014 | 6:25 PM ET
Stephen Holmes, chairman and CEO of Wyndham Worldwide tells Mad Money host Jim Cramer the company does not play games with earnings and tries to tell people what they think they can do and outperform it.

(Click for video linked to a searchable transcript of this Mad Money segment)

Sometimes, when you least expect it, the market gives you a gift.

It's not always wrapped in fancy paper with a bow but it's a gift nonetheless.

That's how Cramer views the sell-off in Wyndham Worldwide after the company reported earnings.

Part of his bullish outlook stems from the company's long-term track record, which Jim Cramer called 'fabulous'.

"If you bought Wyndham five years ago, you'd now have a magnificent 1,170% return including reinvested dividends. In other words, say you invested $5,000 in this stock back in February of 2009, as long as you reinvested Wyndham's bountiful dividends, your position would now be worth $63,500, a more than ten-fold gain," Cramer said.

Douglas Waters | Digital Vision | Getty Images

Cramer firmly believes that kind of advance is only possible under the stewardship of outstanding management.

And he says Wyndham CEO Steve Holmes is among the best in the business.

"He's one of the most shareholder friendly executives around," Cramer said. "Holmes believes in big, consistent dividend boosts and massive, well-timed buybacks."

To a pro like Jim Cramer, that kind of long-term track record matters much more than some underwhelming earnings report.

And underwhelming is the operative word because Cramer says there was nothing in the Wyndham earnings that should have triggered any serious cause for concern.

"The company delivered in-line results and kept guidance at the same levels," Cramer explained.

"The stock got slammed because the Street was used to the company delivering more. "People had gotten used to Wyndham being a beat and raise kind of company."

But nonetheless selling dominated on Friday with shares of Wyndham tumbling about 4% by the close

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And that's the gift. That is, the market drove the stock lower yet the company remains as robust as ever.

"I think this is a buyable pullback," Cramer said, "especially since they raised the dividend again."

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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