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How the Sell-Off Creates 'Bargain' Stocks

Nobody hopes the market will take a beating, Cramer said, but bad action sometimes creates bargains. Consider PPG Industries, his favorite specialty chemicals company, which reported a "blow-out" quarter Thursday. Yet, the stock is down more than two points from where it closed Wednesday, when no one knew about the "fabulous" results.

"The sell-off is obscuring the good news and letting you get into this one for much less than you would have had to pay otherwise," Cramer said, adding that the conglomerate delivered earnings of $1.64 per share, which is 21 cents more than the consensus estimates—the average of what the analysts, who cover the stock were expecting.

An industrial coatings business, PPG supplies the automobile industry and is benefitting from strong demand in emerging markets, including those in Asia and Latin America. Sales were up 27% in China, where it is the number one provider of industrial coatings for the auto industry there. In its commodity chemicals business, sales increased by 13% and earnings before interest and taxes grew by 26%. PPG increased caustic soda prices by $80 a ton and it's looking to put through another $35 per ton price increase next quarter, Cramer said. It raised chlorine prices by $50 a ton-this quarter painted a very bullish picture.

Meanwhile, Cramer said, the Pittsburgh-based company is paying down debt and buying back stock. It purchased 1.6 million shares over the quarter and has 4.5 million shares left in its buyback. He called PPG a "very shareholder friendly company" after it announced its raised its quarterly dividend by a penny per share for a 3.5% yield.

But it seems the 13 brokers who cover PPG don't care about any of this, Cramer said. Only four rate it a buy, versus eight holds and one sell. There are some concerns over the company's exposure to Europe, he said. The company does get 36% of its sales from Europe, the Middle East and Africa, but Cramer thinks those fears go away now that the company reports European volumes remained stable.

To better understand what's happening with the company, Cramer spoke with CEO Charles Bunch on Friday's Mad Money. Watch the videoto see the full conversation.

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