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Health Food Is Selling, But Should You Buy It?

Cramer may like Panera the company, but he won’t recommend the stock right now.

He likens Panera to Chipotle and Whole Foods , companies that make “good-for-you fast food,” which Cramer sees as a strong secular trend growing among consumers today.

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“People pay a premium for what they perceive to be as healthy foods,” Cramer said. “And Panera is part of that rubric.”

Still, he can’t in this market get behind a high-multiple stock without dividend protection because stocks in general have had “a big, big run.” Instead he told viewers to buy PNRA during the “sharp, quick drops of misinformed selling that happen probably four or five times a year.” That’s their chance to take advantage of the fact that many people don’t understand how big a trend healthy food really is.

In this economy, with cash-strapped consumers unable to repay their loans, who would want to buy a company like SLM Corp. ? The company, known for its education lending, is looking to unload its student-loan servicing business and its $145 billion government-subsidized loan portfolio. Cramer said a number of banks are “talking positively” about the business, as both school and auto loan repayments have started to recover.

Sprint Nextel , trading at $4 and change, is “worth $7” just on earnings, Cramer said. He thinks it’s time to stop thinking of Sprint as a takeover target.

“It’s much better than that,” he said.

Lastly, Jones Apparel reported a “total blowout” quarter, Cramer said. The numbers proved that worries about JNY’s, and VF Corp.’s , raw costs were “overblown.”

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