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Jim Cramer’s ‘Mad Money’ Recap: Here’s Next Week’s Game Plan

Saturday, January 24th, 2015

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK ( TheStreet) -- The good guys just keep on winning, Jim Cramer told his Mad Money TV show viewers Friday. But with next week's flurry of earnings, Cramer told investors to "stop, look and listen" and not step on the battlefield because the news will be coming too fast to follow. On Monday, Cramer said he'll be watching Norfolk Southern and Microsoft , a stock which he owns for his charitable trust, Action Alerts PLUS. Cramer said he expects good things from both companies. Must Read: 16 Rock-Solid Dividend Stocks With 50 Years of Increasing Dividends and Market-Beating Performance Next, on Tuesday, it's a huge day, with 3M , American Airlines , Caterpillar , DuPont , Procter & Gamble and Apple , another Action Alerts PLUS name, all reporting. Cramer is bearish on Caterpillar but had positive things to say about all the others. Wednesday brings earnings from Boeing , Qualcomm and Biogen Idec . Cramer expects good results from all three of these faves. Then, on Thursday, it's Alibaba and Celgene , two stocks Cramer said will go higher, along with Amazon.com and Google , two stocks he said makes him nervous, despite Google also being an Action Alerts holding. Finally, on Friday, the earnings finally come to an end with Chevron and MasterCard , yet another AAP holding. Cramer advised steering clear of all oil stocks as well as MasterCard, which will likely fall after it reports. Executive Decision: Rick Hamada For his "Executive Decision" segment, Cramer spoke to Rick Hamada, CEO of Avnet , the tech component and solutions provider that posted a 6-cents-a-share earnings beat yesterday, news that sent shares up over $1. Hamada explained that Europe was particularly strong this quarter, up 7%, thanks in part to investments in the region and solid execution. He singled out Germany and the U.K. as above-average countries. Overall, Hamada said that tech spending was resilient throughout the quarter as new technologies are being adopted in the data center space as well in the "Internet of things." When asked about those "things," Hamada noted there are many opportunities for Avnet from the sensors all the way to the servers. Perhaps the only dark cloud over Avnet's quarter came from currency translation. Hamada said that with the weaker euro, sales appeared to be slowing down. Adjusted for a constant currency, investors can easily see that Avnet is on target meeting its promises. Cramer said Avnet is doing all the right things. Must Read: How to Trade the Market's Most-Active Stocks: UPS, Avon and More Cramer Takes on UPS and McDonald's It's time we hold CEOs accountable, Cramer told viewers as he sounded off against the heads of two Action Alerts PLUS holdings, UPS and McDonald's . Cramer said UPS promised that it wouldn't make the same mistakes it made during the 2013 holiday season. Instead, the company made worse ones, news that sent shares of UPS skidding 9% today. Cramer said the employees and shareholders of UPS deserve better and he called on UPS' board of directors to admit it made a mistake in its choice of CEO. Then there's McDonald's, which for several quarters has noted the "urgency" of its declining sales, yet has simply done nothing about it. Why should UPS and McDonald's get a pass when FedEx and Wendy's are hitting it out of the park, Cramer asked? These results are unacceptable, Cramer concluded, and these two companies need to find better people to lead their companies. Executive Decision: Bryan Jordan In his second "Executive Decision" segment, Cramer spoke with Bryan Jordan, chairman, president and CEO of First Horizon National , a regional bank that delivered a 3-cents-a-share earnings bear on robust lending. Shares of First Horizon yield 1.85% and are up 35% since Cramer first recommended the company two years ago. Jordan said First Horizon saw great customer activity this quarter, including growth in commercial real estate and new account openings. He said First Horizon continues to build a strong balance sheet and they expect to see the momentum continue. When asked about a loss of momentum in the oil and gas industries, Jordan noted he expects to see lots of growth in Texas, even if the oil and gas industries begin to pare back production. Turning to his bank's continued fallout from the mortgage crisis, Jordan said it has been six or seven long years, but First Horizon continues to make progress in making settlements and closing that chapter of its history. Cramer said local banks seem to be back in vogue and First Horizon is a shining example. Must Read: Starbucks' Seemingly Perfect Holiday Season May Not Have Been So Perfect Lightning Round In the Lightning Round, Cramer was bullish on Royal Dutch Shell , BioMarin , Cypress Semiconductor , Take-Two Interactive , Nordic American Tanker , Brown-Forman and Constellation Brands . Cramer was bearish on Zillow , Continental Resources , Juno Therapeutics , Micron Technology , Zynga and Teekay Tankers . Executive Decision: Russell Goldsmith In a third "Executive Decision" segment, Cramer sat down with Russell Goldsmith, chairman and CEO of City National Bank , a stock that's up 36% since Cramer first got behind the company in September 2013. City recently announced it is being acquired. Goldsmith said that City National wasn't for sale but the opportunity was right and it was "the right thing to do" for City's clients, employees and shareholders. When asked about the company's customer-focused strategy, Goldsmith said that it might seem old-fashioned, but City focuses on one client at a time, helping them on their way up as their wealth builds.  Cramer commended Goldsmith for a job well done. Must Read: This Forgotten Cigarette Stock Could Give You a 12% Return This Year To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

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Jim Cramer’s ‘Mad Money’ Recap: How to Maneuver in a Trader’s Market

Wednesday, January 14th, 2015

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK ( TheStreet) -- We've got a trader's market on our hands, Jim Cramer announced on  Mad Money Tuesday. That means investors can either finds stocks they like and watch them like a hawk or sell into strength and buy into weakness. In volatile markets, investors should be used to sector gyrations and sudden shifts in direction, Cramer said. But it's still rare to see these moves occur in the same session, and that's what today's session served up for investors. Must Read: 10 Stocks Billionaire David Einhorn Loves for 2015 In the morning, the markets were focused on a stronger Europe and a stabilization of oil prices, along with positive news from Alcoa , Amazon.com and Apple , a stock Cramer owns for his charitable trust, Action Alerts PLUS. But by the afternoon the markets shifted direction to focus on disappointing comments from KB Home  and Tesla Motors , which were enough to erase all of the early gains. Cramer said there still were come bright spots in the market. He noted that Southwest Airlines had positive comments to combat negative ones from American Airlines yesterday, and biotech continued to shine. But those isolated positives weren't enough to combat the overwhelming sense that things might not be as rosy as we believe. That's why Cramer said investors can either find stocks they like and watch them closely for any fundamental changes, or trade on these wild swings, selling into strength and buying into weakness like this afternoon. Executive Decision: Michael McNamara For his "Executive Decision" segment, Cramer sat down with Michael McNamara, CEO of Flextronics , to hear about all of the latest technology stemming from this year's Consumer Electronics Show, which just finished up in Las Vegas. McNamara said there are a lot of exciting things happening in the consumer electronics world and Flextronics is playing a part in just about all of them. He said perhaps the biggest trend right now is technology going into cars. There's a ton of tech moving into cars, McNamara explained, from driver assist systems to make cars safer and prevent accidents to productivity tools and entertainment to make that commute more enjoyable. Everyone wins, he added. Another big trend this year is health. McNamara said many tech companies are connecting monitoring devices right to the cloud so your doctor can monitor your health in real time. Cramer said Flextronics remains an inexpensive stock with a lot of exciting things happening. Must Read: Why Citigroup's Stock Is the Favorite Among Institutional Investors CEOs to Count On In a volatile market, it's important to recognize companies that have CEOs you can count on, Cramer told viewers. That means Walt Disney and Celgene . Cramer said Disney's Bob Iger has been among his "bankable" CEOs for years and Cramer continues to recommend that all parents buy shares of Disney for their kids to teach them about the markets. Under Iger's leadership, Disney has become a company built around tremendous brands, Cramer explained, brands like Pixar, Marvel and now Star Wars. Add to that the terrific franchise of ESPN and Disney's theme parks and there is massive upside, Cramer said. Then there's Celgene, a biotech that until recently was just a one-trick pony. But under the leadership of CEO Bob Hugin, Celgene has been putting its capital to work -- broadening its portfolio to include several terrific drug prospects and franchises. Cramer said both of these CEOs work 24/7 to make shareholders money and they're exactly the kind of CEOs investors should be adding to their portfolios. Off the Charts In the "Off The Charts" segment, Cramer went head to head with colleague Carly Garner over the direction of U.S. Treasuries as investors around the world continue to flock to U.S. bonds, sending interest rates ever lower. Garner looked at the weekly chart of the iShares 20-yr Treasury ETF , noting that bonds have rallied back to the 2012 levels, a time when the U.S. economy was in far worse shape, with heightened unemployment and a Federal Reserve actively buying bonds. She forecast a ceiling of resistance at $134 and noted the relative strength indicator, or RSI, has spiked above 70, a very bearish sign. Garner noted a similar story when looking at a monthly chart of the Treasury ETF, noting a massively overbought situation that could fizzle very soon. Finally, Garner noted the U.S. dollar index is also signaling a top, meaning our currency, as well as bonds, could be due for a major correction. Must Read: Why Plunging Oil Prices Haven’t Slowed U.S. Crude Output -- Yet Lightning Round In the Lightning Round, Cramer was bullish on Kinder Morgan , Isis Pharmaceuticals , Kraft Foods , Mondelez International , United Rentals and MasterCard . Cramer was bearish on Valero Energy . Next-Gen Biotechs: Halozyme Therapeutics Continuing with his week-long focus on the next generation of biotech companies, Cramer spoke with Dr. Helen Torley, president and CEO of Halozyme Therapeutics , a small-cap company that is working on treatments for diabetes and cancer, among others. Dr. Torley said she's very optimistic about Halozyme's pancreatic cancer treatment, PEG-PH20. The treatment helps prevent sugars from forming around cancer cells, thus allowing other therapies to work better. Torrey noted that pancreatic cancer is one of the hardest to treat and physicians are constantly looking to advance the standard of care in this area. Halozyme is also working on a new drug elvitry platform that allows more complicated drugs to be administered either at home or in clinics in far less time that traditional methods at a hospital. Cramer said Halozyme is a very exciting company. Must Read: Citigroup's 9 Best and Worst Food Manufacturing Stocks for 2015 To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

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Jim Cramer’s ‘Mad Money’ Recap: How to Become an Even Better Investor

Wednesday, December 31st, 2014

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK ( TheStreet) -- What makes a good investor? Knowing to expect the unexpected, Jim Cramer said on  Mad Money as he opened his investing tool box to help viewers become better investors.  Diversification is still the only way to invest, said Cramer, admitting he occasionally gets it wrong. Sometimes his stock picks just simply don't work out. That's investing. Any investor putting together an investing portfolio needs to be prepared, said Cramer, because sooner or later something won't work out. Must Read: Jim Cramer’s 4 Best Stock Picks for the Health Care Sector But how should investors prepare for the next market catastrophe or stock pick gone bad? Not by being bearish but by being smart, Cramer said. Being a bear means shorting stocks, hoping they go down. That's a valid investing strategy but it limits one's profit potential since the lowest a stock can go is zero. However, Cramer said, compare that to bullish investing, betting that stocks go higher. Their potential profits are limitless, he said. Investors who invested in Action Alerts PLUS holding Apple in 2009, for example, realized a 580% gain over the next three years. Beyond having a positive outlook, Cramer said the most important rule to managing your money is diversification. That means not having all your eggs in one sector basket. A portfolio with five stocks must have only one technology company, one health care name, one energy company, one industrial, etc. Two or three of a kind is a quick way to get caught off guard, so no more than 20% of a portfolio can be in a single sector. Being diversified is more than just investing in different sectors, however. Cramer said the new rules of diversification also require owning some gold in your portfolio along with a high-yielding dividend stock, a growth stock, a speculative stock and one that's firmly rooted in a healthy geography. Check the Dividends Cramer said the most important category of stocks that must be in a diversified portfolio is a high-yielding dividend stock. He said that every portfolio needs at least one, possibly more, dividend payers. Must Read: Apple Totally Destroys Samsung, Microsoft to Rule Christmas While dividend stocks might not seem sexy, dividends make money. In fact, nearly 40% of the total gains from the S&P 500 since 1926 have come in the form of dividends. Over the past decade, that percentage is even higher, he said. Dividends aren't merely safety plays for retirees and cautious investors, said Cramer. They are a smart strategy for making money. He explained that as a stock price falls, its dividend yield increases, which, in turn, makes it more attractive to investors. Stocks that hit a 4% yield represent terrific long-term bargains, he noted, which is why stocks typically stop going down once they hit 4%. But beyond making money, Cramer said dividends -- and especially dividend raises -- are management's way of telling investors that things are going well at a company. A solid, steady dividend that gets raised regularly is a hallmark of a company that's stable and doing sell. Not all dividends are created equal, however, cautioned Cramer. He said dividend yields that are not sustainable are red flags. Just look at what happened to Radio Shack and supermarket SuperValu in early 2012 for a lesson in dividends gone awry. Cramer said a company's earnings per share should be at least twice that of its dividend payout to be considered safe. For companies with high capital needs, like telcos, he said investors can look at the cash flow as another metric to see whether the dividend may be in jeopardy. Secular Growth Stocks Next up in Cramer's toolbox of investing tips: secular growth stocks. Stocks like AAP holdings Apple, Google and Facebook all fit this category, said Cramer. So do many biotech names including Regeneron and Celgene . Growth stocks will hit new high after new high as long as their growth continues. That's because stock prices represent what investors are willing to pay for future earnings, he said. So as a company's earnings grow, so, too, does its share price. Cramer said as a rule, he's willing to pay up to two times a company's growth rate. So for a company growing 20% a year, he's willing to pay up to 40 times their earnings. Growth stocks typically won't trade below one time their growth rate unless something is going wrong. Must Read: 5 Best Restaurant Stocks Poised to Benefit From Lower Oil Prices in 2015 Cramer told investors to pay close attention to the direction of the earnings estimates anytime they're investing in growth names. "When you're playing with momentum, you're playing with fire," Cramer continued. When earnings have momentum, companies can see their stock double in just a year, but if the earnings begin to slow, they will fall sharply -- as Chipotle Mexican Grill saw in July 2012 when shares tumbled 100 points on the mere suggestion that the company may be vulnerable to a weakening U.S. economy. Staying Speculative Every portfolio also needs something to keep you interested, said Cramer, and that means at least one speculative stock. While speculation has become a dirty word on Wall Street, something most financial advisers will tell you to avoid, Cramer said it's important to stay engaged with your stocks and to continue to do your homework. Otherwise, investing will become no more profitable than gambling. To speculate wisely, Cramer said investors need to use the right rules and maintain their discipline. Speculation can provide investors with enormous gains, he said, but if done incorrectly can yield gut-wrenching losses. When it comes to speculating, most investors look towards stocks under $10 a share. Cramer said there are two kinds of stocks in this category -- those with broken companies and those with merely broken stocks that have been left for dead by money mangers that aren't allowed to invest in things under $5 a shares. Investors can take great advantage of the latter, said Cramer. Two great examples of "left for dead" stocks include Sprint , when it traded at just $2 a share, or Rite Aid which traded as low as $3 a share. During the height of the great recession both companies were hated by Wall Street. But beneath all of the skepticism they were solid companies, said Cramer, which is why both companies saw their shares rebound nicely. These deals don't come around often, however. More often than not, stocks under $10 a share are tiny names that you've probably never heard of, Cramer said. These may be fads or companies that are mere shells of their former selves. But that doesn't mean that there aren't diamonds in the rough out there if you know where to look. Must Read: 10 Stocks Billionaire David Einhorn Loves for 2015 U.S.A. All the Way Back in the old days, part of diversification used to mean owning a foreign stock, Cramer told viewers, one with exposure to the red-hot emerging markets. But with fiasco in Europe and a slowdown in China crushing all things international, the tables have turned, making stocks firmly rooted here in the U.S. pretty good by comparison. That's why part of the new diversification requires one stock that offers domestic security, anything that is U.S.A. all the way. Cramer said that could be a phone company such as AT&T or Verizon or a utility such as Consolidated Edison or Duke Energy , all of which are also high-yielders. But investors could also choose a regional to national restaurant chain such as Popeye's Louisiana Kitchen or a real estate investment trust such as Federal Realty Trust or Tanger Factory Outlets . Cramer said his bottom line is that investors need to be thinking about all-American companies for the foreseeable future. Remember the Gold Cramer's last tip for investors was to always include some gold in their portfolios. Gold, he said, has a special property that makes it precious. Gold goes up when everything else is going down. It's insurance against economic uncertainty, geopolitical chaos and inflation. Cramer said to think of gold as stock insurance, just as valuable as homeowner's or auto insurance. Gold has been the best-performing asset class year after year for the past decade, racking up gains consistently at a time when just about everything else has been disappointing. Owning gold is not just about the upside, however -- it's also about minimizing the downside. Cramer once again heralded the SPDR Gold Shares exchange-traded fund as his favorite way to invest in gold. For investors who can afford to buy larger quantities of gold, owning gold bullion or gold coins is also a wise choice, he added. But beware of the gold mining stocks, Cramer cautioned. While these companies benefit from the increasing scarcity of the precious metal, they also encompass countless ways to screw things up, costing investors dearly. "If you want exposure to gold," Cramer concluded, "do the easy thing and buy the GLD." Must Read: JPMorgan's 6 Top Biotech and Pharmaceuticals Stocks to Buy in 2015 To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

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Final List of Financial Moves to Be Made Before Year’s End

Monday, December 29th, 2014

NEW YORK (TheStreet) -- One list down, one to go. With Christmas out of the way, you have just a few more days to begin digging in to that other holiday list: The checklist of financial moves you should make before year's end. We've surveyed the landscape of financial advisers, brokerages and some of the finest financial minds in the publishing business (hat tip for the adapted line to Mr. Homer Simpson). Most of what we found breaks down into a handful of smart tips that will do you well in 2015. Must Read: Cramer: What Stocks You Can Still Buy in This Rally Category One: Mad Max No, not your credit cards! We mean it's time to make sure you max out your IRA contributions, use the maximum benefit from your flexible spending account (FSA) and get your charitable contributions into the mailbox. All of these will save you on taxes early next year. To avoid penalties, if you're older than 70-1/2, don't forget to take your minimum required distribution from retirement accounts. If you're in the red on a stock you don't love, selling it now will let you harvest tax losses in time for your 2014 return. The rules on FSAs have been loosened a bit this year, so you may be able to carry over up to $500, or delay spending the 2014 money you set aside until mid-March. But it's a good time to pay off any outstanding doctor-bill deductibles, or maybe buy a pair of glasses. Self-employed people might want to max out on the business expenses by Wednesday. If you need a new office chair or an extra computer, now's the time. Let Uncle Sam and your state pay up to half, depending on your bracket. Category Two: Procrastinate A very few things might benefit from procrastinating, and one is deferring income into next year if you can. For some workers, that may mean deferring payment of a bonus. For self-employed people, that can mean timing the outgoing invoices to make sure the money arrives in 2015. Must Read: Here's Why U.S. Economy Growing at 5% Is Good for Stocks The tactic will at least defer the time when you have to pay until you do first-quarter estimated tax returns. If your bracket is going to be lower next year, it can even save you some money over time. But be careful: If you expect to make materially more money next year than in 2014, the smart move may be the opposite -- to pull as much money as possible into this year. Category Three: Rebalance Yourself and Your Money Just as this is a season of resolutions, your money can benefit from a little extra holiday-season attention to planning. Some must-dos: 1. Rebalance your portfolio among stocks, bonds and other assets. Two years of double-digit stock gains may have you more exposed to equities than you want to be. If your plan two years ago was to be split 50-50, for example, you may be skewed 60-40 to stocks by now. The idea is to stick to the plan you made rather than to be seduced by a good year or two for a particular fund, or for stocks in general, that may end in exactly 2,008 tears. More or less. 2. Get ready to exploit trends emerging in late 2014 and 2015. There's been a bit of news lately. The economy grew at a 5% annual clip in the third quarter, the best in 11 years. Growth in Europe and China has been slowing. Oil prices have been careening downhill even faster than stocks did six years ago. What should you do? Here's some advice from pros. Think tech, T. Rowe Price Associates equities chief Bill Stromberg wrote in a year-end note to the firm's clients. "Despite their non-U.S. earnings exposure, a number of technology stocks appear attractively valued, given out expectatons for growth in mobile broadband, cloud computing and emerging-market consumer markets." Putting our money where his mouth is, T. Rowe's biggest tech holdings include Amazon  and Apple in the New America Growth Fund; Amazon, Google and Priceline in the T. Rowe Price Growth Stock Fund, and broadband carriers like Verizon and Comcast in their Media and Telecommunications fund. Think oil, but carefully. Bank of America Merrill Lynch strategist Savita Subramanian argues there are ways to try to turn the oil drop to your advantage. One is to play names like Chevron and Exxon Mobil for their dividend potential, since they are financially as big and relatively steady as a tanker. T. Rowe also notes the possibility for "substantial rebounds" in some oil stocks. But stockpicking may be risky: With capital spending by drillers expected to drop, a lot of equipment and services companies might take more losses. Consumers will save money on gasoline, but they'll be likelier to spend it on staples than consumer cyclical goods, Subramanian says. Historically, staples-oriented companies like Wal-Mart , Dr Pepper Snapple and Kimberly-Clark have done better when oil goes down, she says. She also highlights airlines including Delta Air Lines and Southwest Airlines  . Think international, BlackRock strategist Russ Koesterich says. With U.S. stocks trading around 17 times next year's expected earnings, they're no longer cheap, he writes. It takes guts, but Japan and some emerging markets may offer better value, he says. Or think local. Municipal bonds have had a big year, and look good for next year as well, Koesterich said. "Yields for longer-maturity munis rival or exceed those of their taxable counterparts on a before-tax basis, and this only increases the after-tax value,'' he wrote. Must Read: Dow 18,000: Why This Market Rally May Never Happen Again

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How Investors Can Profit From the Growing Cyber Security Industry

Wednesday, December 24th, 2014

NEW YORK (MainStreet) -- The rampant data breaches throughout the past year have spelled nothing but bad news for major corporations and millions of American consumers. Sony , Home Depot , Target , eBay and Apple  are among the victims, with their customers and users suffering compromised sensitive personal and financial information. But as anxiety has swelled especially over the busy shopping period, there's a silver lining for investors: the opportunity to capitalize on the prevalent hacks by investing in cybersecurity. According to a PwC report from September, cyber hacks are increasing at 66% year over year, and cybersecurity investments are responding in kind: IDC is expecting the cyber security sector to have a 7% compound annual growth rate through 2017. "It's a growth industry, so to speak," said Christian Magoon, consultant to the PureFunds ISE Cyber Security ETF , which launched Nov. 12 and is comprised of 30 holdings that are plays on cyber protection. Continue Reading on MainStreet

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Jim Cramer’s ‘Mad Money’ Recap: Where You Can Be Making Money Today

Tuesday, December 16th, 2014

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK ( TheStreet) -- If things are really so bad, then why are so many good things still happening? That was the question Jim Cramer posited to his Mad Money TV show viewers Monday as he cited just a few examples of stocks that aren't tied to the Russia and are still making investors money. Petsmart was first positive on Cramer's list. The company announced an $8.3 billion tender offer, making it the largest leveraged buyout of the year. Then there's Riverbed Technology , which announced its taking itself private at $21 a share. Cramer said neither of these companies is anything spectacular, yet their shareholders were rewarded handsomely. Must Read: Jim Cramer’s 4 Best Stock Picks for the Health Care Sector Cramer also noted positive news on iPhone sales, which led to gains in Cirrus Logic , Skyworks Solutions and, of course, Apple , a stock Cramer owns for his charitable trust, Action Alerts PLUS. Also in the positive column today was Bob Evans Farms , which announced the resignation of its CEO thanks to activist investor pressure; Honeywell , which reaffirmed its guidance; and Alcoa , which announced the purchase of a German company. Maybe things really aren't as bad as the headlines tell us, Cramer concluded. Yes, some stocks are tied to Russia and the global economy, but clearly these names aren't. Executive Decision: Klaus Kleinfeld For his "Executive Decision" segment, Cramer spoke with Klaus Kleinfeld, chairman and CEO at Alcoa , on the heels of the company's acquisition of Tital in Germany. Kleinfeld said that while the Tital acquisition was a fairly small one for Alcoa, it does play into two important themes for the company: aerospace and Europe. He noted this is the second acquisition Alcoa has made this year. Kleinfeld also noted that Alcoa is not giving up on organic growth and is actively expanding its capabilities in many areas to become more competitive. Alcoa continues to bring new, lower-cost facilities online and continues to close older, higher-cost ones. When asked about new technologies, Kleinfeld said that in addition to constantly striving to make stronger, lighter materials more affordable for a variety of applications, Alcoa also uses technology such as 3-D printing to help speed up the process of prototyping. He noted that 3-D printing is only beginning to realize its full potential. Cramer said he continues to be a fan of Alcoa. Must Read: Buffett and Billionaire Investors Look to Oil, Health Care and Spinoffs in 2015 Illogical Linkage How can cheaper oil prices be so bullish for the U.S. economy yet so bearish for U.S. stocks? Cramer said investors would have to be out of their minds to not see that paying less at the pump and less for heating oil is a good thing. They'd also have to be blind to not see that lower oil prices are great for industrial companies, chemical companies and anyone that has to ship things over great distances. Yet, as oil prices continue their slide lower, so, too, does the stock market, despite the fact that this newfound oil stimulus is far more broad and effective than the one President Obama signed into law back in 2009 at the onset of the recession. Cramer said this illogical linkage between oil and stocks won't be broken anytime soon, which means investors can only wait for prices to fall far enough where oil simply won't matter anymore. Only then will the madness end and sanity return, he concluded. Executive Decision: David Cote In his second "Executive Decision" segment, Cramer sat down with David Cote, chairman and CEO of Honeywell, another company with a great read on the state of the global economy going into 2015. Cote said that Honeywell is doing "pretty good" relative to everyone else with its 4% rise in organic sales growth. He said that while places like Russia and Brazil make him nervous, Honeywell was able to forecast and prepare for the weakness currently seen in the Europe. Turning to the U.S., Cote agreed with Cramer that lower oil prices are a good thing. He said GDP growth matters and oil over $100 a barrel was a drag on GDP growth in our country. With oil at $50 a barrel, there may be a crimp in some of Honeywell's energy businesses, Cote continued, but for other areas, like aerospace, it will only accelerate growth. When asked about the company's use of its cash, Cote said he's always been a fan of mergers and acquisitions when applied in a systematic fashion. That's why Honeywell has done 80 deals over the past 10 years, deals that have added over $12 billion in sales. For all these reasons, Cramer said Honeywell remains one of his "absolute favorite" companies. Must Read: How Mexico, Not Saudi Arabia, Could Drive Oil Prices Higher Lightning Round In the Lightning Round, Cramer was bullish on American International Group , WhiteWave Foods , Taser International and Magellan Midstream Partners . Cramer was bearish on Ambarella , Marathon Petroleum , Sturm Ruger and Weatherford International . Executive Decision: Burton Goldfield In a third "Executive Decision" segment, Cramer sat down with Burton Goldfield, president and CEO of TriNet , the employee benefit manager that's seen its shares pop 37% since Cramer last checked in on May 13. Shares of TriNet currently trade at 21.6 times earnings. Goldfield said investors should ignore the headlines because small business is alive and well here in the U.S. He said TriNet is seeing growth across all its industries, from hospitality to hedge funds and law firms. Goldfield said TriNet is now the HR department for over 10,000 companies across the U.S. and is helping all of them deal with the increasing complexities of managing payroll and benefits. HR is finally becoming cool, Goldfield quipped, noting that as companies get more overwhelmed, they increasingly want to talk to TriNet. Cramer said that while TriNet didn't have the hottest IPO of the year, the stock has been a real winner ever since. Must Read: Why the Federal Reserve Needs to Start Raising Interest Rates Now To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

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Jim Cramer’s ‘Mad Money’ Recap: Who Needs the Fed When U.S. Has Growth and Profits?

Wednesday, November 26th, 2014

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK ( TheStreet) -- The Federal Reserve isn't the deciding factor in our stock market anymore, Jim Cramer told his Mad Money viewers Tuesday. The deciding factors are growth and profits, and the U.S. has them in spades while everyone else doesn't. Cramer said today's news U.S. GDP grew by 3.9%, the fastest back-to-back quarters in over three years, is proof the market's rally is backed by higher corporate profits and the fact that consumers feel wealthier, more secure and more confident. Must Read: 10 Stocks George Soros Is Buying All that wealth and confidence is great news for the economy, Cramer continued. It means more homes being built, more businesses being started and more people being hired. It also means the market's rally is self-sustaining despite the bears who have been saying for years that all would be lost once the Fed stopped its bond buying. But for as good as things are here in the U.S., they're not that good overseas. That means international money continues to flow into stocks like Apple , a stock Cramer owns for his charitable trust, Action Alerts PLUS, because Apple still only trades at 15 times earnings even though shares are up 47% for the year. Off the Charts In the "Off The Charts" segment, Cramer went head to head with colleague Mark Sebastian over the chart of CBOE Volatility Index   to see what it might be telling us about the direction of the overall markets. Sebastian noted that while the VIX remains at historically low levels and all of the volatility from a few weeks ago has vanished, the VIX still trades nearly two points higher than it did in June and July -- the last time the markets marched higher. So why is there more fear now than over the summer? Sebastian felt that investors must still be worried an interest rate hike may be coming in mid-2015. But that's not going to happen, according to Sebastian. The dollar remains at multi-year highs while commodities from oil to corn to soy are at multi-year lows. While top-line unemployment may be falling, the underlying metrics show many workers are only working part-time, leading to a total lack of wage inflation. Sebastian felt the increase in the VIX is simply the markets lagging the latest thinking on interest rates. Once the market realizes rate hikes are not on the horizon, the VIX will fall, sending stocks even higher. Cramer said he agreed with Sebastian's analysis. Must Read: Why the U.S. Economy Is So Much Stronger Than Anyone Expected Should You Buy Dave & Buster's? Is the newly minted stock of Dave & Buster's worth owning? Cramer took a look at this stock, which rallied 8% on its initial public offering and has been up another 25% since then. Dave & Buster's currently operates 73 casual dining centers across the U.S. Cramer said investors can think of them as a Chuck E. Cheese for adults, with locations including a restaurant and bar as well as a gaming center that accounts for 50% of revenue. Since 2011, Dave & Buster's has averaged 3% same-store sales growth at a time when most casual dining franchises deliver around 1.5%. In its most recent quarter the company posted 5.7% growth, with private parties and special events accounting for 12% of sales. Management feels the chain could expand to 200 locations in the U.S., with another 50 overseas, leaving the company a lot of room for growth, Cramer said. The stock, however, trades at 26 times forward earnings with a PEG ratio of 1.3, making shares a little on the pricey side. Cramer said Dave & Buster's is worth owning going into the end of the year, but only using limit orders to buy on weakness. Executive Decision: Irwin Simon For his "Executive Decision" segment, Cramer sat down with Irwin Simon, chairman, president and CEO of Hain Celestial , a stock that's jumped 13% since Cramer last checked in three months ago. Simon said consumers continue to demand more healthy and organic food, which is why Hain expects to sell 1.5 million organic turkeys this Thanksgiving. He said Hain has never seen demand so strong. When asked about changing consumer tastes, Simon said consumers want to know what they're eating and they're willing to pay a little bit more for better options. Consumers don't want processed foods or sodium or high fructose corn syrup, they want the kinds of products Hain offers every day. Is Hain worried about competition? Simon said absolutely not. Hain can't change the way the world eats all by itself, he continued. Everyone needs to get involved and spread the word. Cramer said Hain remains a terrific stock investors need to consider. Must Read: Three Major Mistakes OPEC Made and Why an Oil Output Cut Won't Happen and Wouldn’t Help Lightning Round In the Lightning Round, Cramer was bullish on Alcoa , Skyworks Solutions , Intel , Hasbro , Enterprise Products Partners and Alliant Techsystems . Cramer was bearish on Advanced Micro Devices , LeapFrog and Freeport-McMoRan . No Huddle Offense In his "No Huddle Offense" segment, Cramer pondered whether $75-a-barrel oil is the sweet spot where supply and demand are finally in balance. Cramer said it's clear that domestic demand for oil is on the rise, while everywhere else in the world its declining. That increased U.S. demand is being fed by a constant uptick in U.S. production, which will likely result in the U.S. importing just one million barrels a day from OPEC, down from over 5.5 million barrels just six years ago. And what about OPEC? Cramer said the member nations can't support lower prices for long, so a production cut will have to happen soon, putting a floor under the price of oil. Many bears feel lower gasoline prices are only a blip, but Cramer said the data do not support that. Even at $75 levels it's still economical for our oil shale revolution to continue, and that means great things for the U.S. economy. Must Read: Samsung Galaxy Note Edge Review: Is It the Best Android Smartphone Ever? To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

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Jim Cramer’s ‘Mad Money’ Recap: Here’s Where Money Managers Should Put Their Money

Tuesday, November 25th, 2014

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- "Give me a good thesis and I'm a buyer," say the money managers, according to Jim Cramer. He said on Mad Money Monday the money managers are desperate for new ideas and need to put their money to work. Fortunately, the markets are giving them plenty to like. Technology is a logical place money managers look, Cramer explained. Apple shares are rising, and that's good news for Skyworks Solutions , Western Digital and Sandisk  along with Cisco Systems . Must Read: 10 Stocks George Soros Is Buying What about the Internet stocks and social media? All of the restaurants and retailers are moving their advertising to the Web, which makes Facebook and Google , two stocks Cramer owns for his charitable trust, Action Alerts PLUS, a safe bet. Many investors have given up on the banks, Cramer said, but stocks like Bank of America , another Action Alerts PLUS holding, up only 10% for the year, show the whole banking sector remains very cheap. Cramer said money managers also have a lot to like in health care, with Cardinal Health and biotechs like Celgene leading the charge. Even the industrials are inexpensive, Cramer said, and the expectations for that group remain very low. As for energy, the energy stocks have been getting pummeled, but one would have to believe that OPEC will be cutting oil production soon and allowing a floor to develop in the oil patch. Add all these positives and you've got a recipe for higher stock prices going into 2015, Cramer concluded. Defending Dow What does a CEO have to do to quell the discontent of activist shareholders? That was the question Cramer posed after hearing that Dow Chemical is yielding two of its board seats to activist investor Dan Loeb's hedge fund. Cramer called the smear campaign to obtain these board seats vicious and totally uncalled for. Dow, an AAP holding, is up 18% so far in 2014 and is leading the chemical sector higher. While it's true that Dow stumbled during the onset of the recession and did cut its dividend, a move its CEO said would never happen, Cramer noted Dow has been climbing for the past three years and has done a remarkable job restructuring, boosting its dividend and buying back its own stock. Cramer said in the old days, when a hedge fund didn't like a company it sold the stock. Nowadays, the hedge funds are powerful enough to force change, even if change is not warranted. Activsts are going after Zoetis , a stock that's up 36% in 2014, and Pepsico , up 19%. Why not go after Coca-Cola , which is only up 7% and shows no signs of turning around, Cramer asked? Must Read: How Apple Is Absolutely Poised to Win Black Friday 2014 Buying L Brands Just because fewer people are shopping at your local mall doesn't mean that every mall retailer is suffering, Cramer told viewers. That's certainly the case with L Brands , purveyors of Victoria's Secret and Bath & Body Works, a stock that's once again flirting with all-time highs. Cramer said even though the stock of L Brands has had a monster move higher, it's still worth owning because the company has both strong brands and stellar execution. When L Brands last reported, it delivered a 3% pop in same-store sales at Victoria's Secret and 7% at Bath & Body Works, in addition to a 130-point increase in their gross margins, all while drawing down inventory by 12%. How is L Brands able to execute so flawlessly? Cramer said the company credits its speed. By executing faster, it can both respond to trends faster and fix mistake faster, leading to less excess inventory and few discounts. With Victoria's Secret the leading lingerie retailer in America and Bath & Body Works commanding a 20% market share, Cramer said it's clear that L Brands is in control of its own destiny. The stock may be up 29% for the year and trade at 21 times earnings, but the estimates are likely still too low, Cramer concluded, meaning this is a buy on any weakness. Why Cramer Loves Regeneron Can a stock that's up over 8,000% over the past nine years still have room to run? It can if the stock is Regeneron , a stock that's not done going higher by a long shot, according to Cramer. Cramer explained that Regeneron is undergoing a remarkable transformation from a one-trick pony with its drug Eylea, to a pharmaceutical powerhouse, thanks to what Cramer deemed "the best pipeline in biotech." Cramer said that Eylea is already a $1.7 billion franchise with new indications for diabetic patients coming soon. But beyond that Regeneron has a Phase III drug for dermatitis under development that also treats other auto-immune disorders like asthma. That could be another $2.8 billion opportunity. Then there's Regeneron's anti-cholesterol treatment, which could see approval by summer 2015. Cramer pegged that opportunity at $4.3 billion in peak sales. Finally, Regeneron has an arthritis treatment in the works, with approval expected in 2016. Add another $4 billion potential there. All told, Cramer said this $1.7 billion company could be an $11 billion company in just a few years time. The stock is not cheap at 34 times earnings, Cramer admitted, but its potential is huge. Must Read: 5 Rocket Stocks for Gluttonous Turkey Day Gains: Boeing and More Lightning Round In the Lightning Round, Cramer was bullish on Quintiles Transnational , McKesson , Hanover Insurance Group and Kinder Morgan . Cramer was bearish on Cliffs Natural Resources , IMS Health Holdings , Gilead Sciences , Cenovus Energy and Twitter . No Huddle Offense In his "No Huddle Offense" segment, Cramer sounded off against those who cry foul at companies' capital allocation plans, saying that it's better to invest in growth than buy back stock and increase dividends. Cramer said many companies are already fully funding their growth plans and still have cash to burn, so why not reward shareholders with big buybacks and dividends? Yahoo! and Apple are two such companies that are doing all the right things with their cash, Cramer noted. Do we really care how a company creates value, Cramer asked? Not really. Must Read: Starz May Finally Be Sold in Yet Another Killer Deal for John Malone To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

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Jim Cramer: Which Stocks Stand Out as Winners? Here’s My List

Tuesday, November 18th, 2014

NEW YORK (Real Money)  -- Now, knee-deep in November, we are getting the outlines about how this year is going to end and what stocks are going to be bought on any deep going into the homestretch. You can see it just by paging through the charts, as I like to do on Sundays. The collection of "what's working" is so powerful -- some would say so extended if they were bears -- that they are imprinted deep in the money manager psyche. What stands out? Must Read: 12 Stocks Warren Buffett Loves in 2014 First, and the strongest by far? Health care and health care-related companies away from the major pharmaceutical companies. The outperformance of everything in this group is so strong that it's almost freakish. It's almost dangerous not to be overweight in these stocks going into the end of the year. Of course, this group's strength is a bit of a conundrum. Those money managers who think that our economy is very strong would never choose to be big in these stocks. But if a money manager takes a global perspective and considers European weakness, Chinese slowdown and now a new Japanese recession, then the dialogue changes and these stocks are ideal counters to worldwide weakness. Now considering the heights with which this Allergan  situation has arrived with the potential Actavis bid, you can say that anything that looks or acts even remotely like Allergan, with its ophthalmological franchise and Botox businesses, is going to go higher. That stock, which has more than doubled from a year ago, shows that even after a big run the company remained undervalued to another company and I think that's the undercurrent of the whole group. Put simply, every CEO in this industry wants to buy the other companies in his industry and be a consolidator, and the consolidator will almost immediately be rewarded with a higher stock price. When you consider that Valeant and Actavis have been terrific performers as long as they have remained acquisitive, it explains a lot about what's going on in the group. How many groups have solid earnings and ample takeover prospects, where both the acquirer and the target go up? This is about it.  Must Read: 5 International Stocks to Buy for Breakout Gains This Week: Diageo and More There are so many strong stocks in this group that it's hard to distinguish among them. For example, any medical equipment company -- Bard , Becton Dickinson , Medtronic , Edwards Lifesciences -- you can throw darts at them and they will hit. Or how about the absurd moves -- only way to describe them -- in Henry Schein , Dentsply  and Patterson Companies -- all three decent growers with high price to earnings multiples that are loved beyond belief. I recently interviewed Stanley Bergman, the CEO of Schein; while the company did have a nice acceleration in sales, the market has simply decided that this company and its ilk are wonder growth stocks. The health maintenance organization cost containers are periodically met with downgrades, but it doesn't matter. They are widely perceived as big winners under the Affordable Care Act and these endless valuation downgrades just aren't taking hold. But the best of the best? The same as always, the trio: Cardinal Health , AmerisourceBergen and McKesson . These three companies can never do anything wrong in the eyes of Wall Street. Nothing. They are simply worshipped for their consistency and their constant beating of numbers. I have to tell you that if I were at my old hedge fund, I would simply be buying deep in the money calls on all three or the ride to year-end, that's how entrenched they are on the buyside of the ledger. I would add that calls on Edwards Lifesciences, long one of my favorites, would be terrific, too. Who doesn't want to show that they owned a position in a stock that's gone up 89% this year? The second group that seems to know no bounds now? Retail. I think it took a little while for it to dawn on people how profound the decline in the price of gasoline is for these companies. Between weather and Amazon , many of these companies haven't had a break in years. But if you look at the stocks of Wal-Mart and Target  long the laggards, you can see something really exciting developing here. These one-time growth stocks are growing again. Now I think that when Target reports this week we will still see plenty of problems. I don't expect that Brian Cornell has gotten his hands wrapped around all of the issues, dowdy stores, poor food selection, and the ridiculous Canadian expansion where they opened 125 stores in one year. Just that latter problem is pretty intractable, at least in the face of it. Consider that Nordstrom worked hard for years to make its first Canadian incursion, a store in Calgary, a winner from the get-go. One store! Target could be in retreat for years. Must Read: How IBM Intends to Reinvent Work Email for the 21st Century But it might not matter. Both Macy's and Nordstrom guided down and it didn't matter. Wal-Mart rallied huge on a percent comp gain. The dollar store stocks have rallied mightily even as they battle over Family Dollar . Both Dollar General and Dollar Tree seemed bent to go higher in part because either one wins in this low gasoline environment. I was incredulous that someone would downgrade TJX and Ross this week as they are prime beneficiaries but then again the analyst had a hold on them for much of this run so credibility is in question. It's not just apparel retail or dollar retail. The auto parts retailers, namely O'Reilly Automotive , the always maligned but ever powerful Autozone and even auto retailers CarMax and AutoNation are being lifted by gasoline. It is not at all ironic that Ford and General Motors act terribly: they are huge international companies that are part of the larger morass that drives people toward the domestics anyway. In other words investors would rather play Ford through Carmax and GM through Autonation any day of the week. To me the market has anointed a clear winner here, too: Costco . It is the one to own calls in as managers pile into it to show their brilliance. Oh, and if it stays cold, then the one to own is North Face parent, VF Corporation , although that's a common stock play, not an options one as that doesn't have the volatility required for a good call trade. Restaurants, the twins of retail, all act well. I like Jack in the Box , which reports this week as well as Chipotle , Fiesta Group , Mcdonald's , Brinker and Darden . All in all, though it is really hard for a restaurant to screw it up in this environment.   It's always difficult to figure out what people will do with those spare dollar but the market's saying that besides discretionary goods, there will be materials and equipment bought to make their houses better. Stanley Works, Whirlpool , Sherwin Williams , Jarden , Keurig Green Mountain Coffee , these are all part of that thesis. We will learn more when we hear from Home Depot and Lowe's later in the week but all of these are getting a second wind once associated with lower rates, but in a much more profound way because everyone gets to take advantage of the gasoline decline but not everyone gets approval for a refi. As long as gasoline goes down, airlines will go higher. They are all systems go and while I know we aren't used to seeing these stocks have multi-quarter runs, you're your principal cost goes down sharply while you are raising ticket prices because of demand then your stocks are going to be cheap pretty much no matter what. American Airlines  is trading at 8x an estimate that I think will prove way too low. How is that something not worth owning? There are other much loved stories in the transports. The rails can't do any wrong even when they aren't blowing the numbers away...and they aren't. UPS  preannounced a weak number and the stock barely blinked while FedEx (FDX) was flat. These are amazing developments in themselves yet people seem almost inured to amazing developments. Everything else is pretty "smattering," as a smattering of insurers keeps going higher, as well as semiconductor equipment stocks as well as a few standout techs: Apple  , Microsoft  and Yahoo!  . Some industrials have a halo: notably, 3M  , Snap-On , International Paper  , Honeywell   and Illinois ToolWorks  -- I would buy them into, say, Japanese-related weakness. And people like a couple of consumer product groups stocks in part because they, too, benefit  from raw cost and transport decline: Kimberly  and Pepsico  stand out as does Dr Pepper Snapple  , Mondelez  , Procter & Gamble  , and Clorox  . I think these fit well if you think that the U.S. could be slowing down or if you think the oil decline's caused by weakness in demand, something I disagree with, but to each his own. All in all, the charts say one thing and one thing only: Weakness must be bought and these are the groups you buy into. It's the way of the business; always been, always will be.  Must Read: Why Apple's Swift Programming Language Is a Diamond In the Rough Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long GM, MCD, AAPL, MSFT.  Editor's Note: This article was originally published at 4:33 a.m. EST on Real Money on Nov. 17.

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Oil Pushes Stocks Lower; Fashion Stocks Move On Heels of Earnings

Tuesday, November 4th, 2014
U.S. stocks ended trading on this midterm election day mostly lower. The blue chips however did manage to close in the green.