Archive for the ‘AAPL’ Category

Apple, Amazon, Netflix, Costco, Starbucks Will Help Nasdaq Top 5000

Tuesday, February 24th, 2015

NEW YORK (TheStreet) - The Nasdaq Composite is about 40 points shy of the 5000 milestone and a rally of just 3.5% will result in a test of the 5132 all-time high set in March 2000. While the Nasdaq Composite is in the headlines, beware that the Nasdaq 100 has to gain 8.2% to reach its March 2000 high of 4816, and that the PowerShares QQQ Trust ETF is up 5.1% year to date and has 10% to go to reach its March 2000 high at $120.00. Investors shouldn't consider a new high for the Nasdaq as a technical breakout until the Nasdaq 100 and QQQ also set new highs. Here are five of the companies leading the Nasdaq to new highs. Apple Inc ($133.00) is up 21% year-to-date and is the key stock to drive the QQQ Trust ETF to new highs, as the stock's weighting in the ETF is 15%. Apple's market cap rounds up to an all-time record high for any publicly-traded company at $775 billion and its 12-month forward price-to-earnings ratio is a reasonable 14.5. Amazon.com ($380.14) is outperforming Apple with a year-to-date gain of 23%, but its weighting in the QQQ Trust ETF is 3.5%. Amazon has a market cap of $177 billion and its 12-month forward P/E is extremely elevated at 171.2. Netflix Inc ($471.84) is also outperforming Apple with a year-to-date gain of 38%, but its weighting in the QQQ Trust ETF is just 0.6%. Netflix has a market cap of $29 billion and its 12-month forward P/E is elevated at 84.6. It's more than tech stocks that are driving the Nasdaq and Nasdaq 100 to new highs. Costco ($148.39) is outperforming the Nasdaq 100 with a year-to-date gain of 8.2%. Costco has a weighting of 1.3% in the ETF with a market cap of $65 billion and a 12-month forward P/E of 26.1. Starbucks ($93.58) is outperforming the Nasdaq 100 with a year-to-date gain of 14%. The stock has a weighting of 1.4% in the ETF, has a market cap of $70 billion and a 12-month forward P/E of 25.4. Let's look at the daily chart for the QQQ Trust ETF then outline trading guidelines for the five Nasdaq stocks Courtesy of MetaStock Xenith The daily chart for the QQQ Trust ETF ($108.52) shows the ETF's performance since the end of 2012. The ETF began 2013 with a price gap above its 200-day simple moving average (green line), then at $65.34. Note that the up trend was interrupted by consolidations between May 22, 2013 and June 24, 2013 then between March 7, 2014 and April 14, 2014. The only correction came between Sept.19, 2014 and Oct.15, 2014 when the ETF traded below its 200-day SMA then at $91.89. The ETF set a multi-year intraday high of $108.55 on Monday well above its 50-day (blue line) and 200-day simple moving averages at $103.37 and $98.45, respectively. Must Read: 5 Stocks Warren Buffett Is Selling Apple ($133.00) is up 21% year to date and is 27% above its Jan. 6 low of $104.63. Apple set an all-time intraday high of $133.00 on Monday, well above its 50-day and 200-day simple moving averages at $114.93 and $103.19, respectively. Investors looking to buy Apple should enter a "good 'til canceled" limit order to buy weakness to semiannual and annual technical levels at $112.97 and $110.43, respectively. Investors looking to book profits should consider a sell stop given a weekly close below its key weekly moving average at $121.66, which will be rising each week. Amazon.com ($380.14) is up 23% year to date and is 35% above its Jan. 20 low of $285.25. The stock gapped above its 50-day and 200-day simple moving averages on Feb. 2 and traded to a multiyear intraday high at $384.54 on Monday. The 50-day and 200-day SMAs are now at $324.82 and $322.79, respectively. Investors looking to buy Amazon should enter a "good 'til canceled" limit order to buy weakness to semiannual technical level at $370.84. Investors following my Feb. 11 post booked profits at an annual technical level at $383.18. Investors looking to sell additional shares should enter a "good 'til canceled" limit order to sell strength to a quarterly technical level at $384.84. Investors should also consider using a sell stop given a weekly close below its key weekly moving average at $354.18, as the weekly chart is positive but overbought. Netflix ($471.84) is up 38% year to date and is 52% above its Jan.12 low of $316.83. The stock gapped above its 50-day and 200-day simple moving averages on Jan. 21 traded to a multiyear intraday high at $481.00 on Feb. 19. The 50-day and 200-day SMAs are now at $387.98 and $412.56, respectively. Investors looking to buy Netflix enter a "good 'til canceled" limit order to buy weakness to its 200-day simple moving average rising from $412.56. Investors should also consider using a sell stop given a weekly close below its key weekly moving average at $432.42, as the weekly chart is positive but overbought. Costco ($148.39) is up 8.2% year to date and is 14% above its Jan.16 low of $133.79. The stock set an all-time intraday high of $151.82 on Feb. 4 well above its 50-day and 200-day simple moving averages at $140.08 and $125.00, respectively. Investors looking to buy Costco should enter a "good 'til canceled" limit order to buy weakness to semiannual technical level at $142.31. Investors should consider using a sell stop given a weekly close below its key weekly moving average at $143.24, as the weekly chart is positive and nearly overbought. Starbucks ($93.58) is up 14% year to date and is 20% above its Jan. 6 low of $78.45. The stock set an all-time intraday high of $93.93 on Monday, well above its 50-day and 200-day simple moving averages at $84.87 and $78.53, respectively. Investors looking to buy Starbucks should enter a "good 'til canceled" limit order to buy weakness to its 50-day SMA at $84.87, and rising each day. Investors looking to sell additional shares should enter a "good 'til canceled" limit order to sell strength to quarterly and semiannual technical levels at $94.85 and $96.28, respectively. Investors should also consider using a sell stop given a weekly close below its key weekly moving average at $88.54, as the weekly chart is positive but overbought. Follow @Suttmeier Must Read: 10 Stocks Carl Icahn Loves for 2015: Apple, eBay, Hertz and More

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Jim Cramer’s ‘Mad Money’ Recap: Calm Down, There’s No Nasdaq Bubble

Tuesday, February 24th, 2015

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK ( TheStreet) -- It has taken 15 long, hard years for the Nasdaq to get back to its all-time highs set in 2000, Jim Cramer told his Mad Money viewers Monday. But despite the many strides the market has made since then, critics are once again calling the Nasdaq overvalued and in "bubble" territory. Cramer said it's easy for these pundits to be negative. No one ever got criticized for being too cautious. But while there are always pockets of overvaluation in every market, Cramer said today's markets are nothing like those in 2000. Back in 2000, Cisco Systems , a stock Cramer owns for his charitable trust, Action Alerts PLUS, led the Nasdaq with a valuation of 80 times its earnings. Today, Apple , another Action Alerts PLUS holding, leads the markets with a valuation of just 15 times earnings. In 2000, Cisco's customers were evaporating; Apple's are clamoring for the next big thing. The next largest stock in the Nasdaq is Google , another Action Alerts PLUS name. Google trades at just 19 times earnings. No bubble there either, Cramer said. In fact, as you continue down the list to Microsoft , Intel and Oracle , none of these stocks are overvalued; in fact, they're undervalued. Even in biotech, Gilead Sciences trades at just 10 times earnings, Amgen 16 times. Yes, Celgene trades at 24 times earnings, Cramer said, but in the "out" years -- 2016 and beyond -- that's still pretty cheap given the company's pipeline. Cramer said some sectors, like cyber security, have indeed gotten ahead of themselves, as CyberArk Software proved today -- down 16% on an analyst downgrade. Tesla Motors remains overvalued, he said, given the dismal quarter it just posted. But other than those outliers, Cramer said he's surprised the markets aren't trading even higher. Executive Decision: Andrew Liveris For his "Executive Decision" segment, Cramer sat down with Andrew Liveris, chairman, president and CEO of Dow Chemical , the Action Alerts PLUS holding that last posted a strong 16-cents-a-share earnings beat on steady volume growth that has shares just of their 52-week highs. Liveris outlined the transformation Dow Chemical has undergone over the past decade. He said 10 years ago, Dow was a one-product petrochemical company. Today Dow is a technology company, with over two-thirds of its products based on proprietary technology. The Dow of today is a consistent earner. Liveris was very bullish on Dow's partnerships in Saudi Arabia, saying the investments will help boost market share in China, India, Africa and throughout the Middle East. Turning to the U.S. economy, Liveris supports a balanced approach to exports of oil and gas, as America has the possibility to not only be energy independent but also to have oil and gas prices lower than the world price. This is a situation that could have incredible advantages. Cramer said Dow has reinvented itself into a cash machine and there's only more to come. Must Read: 15 Biggest Buys Buffett, Icahn and Other Big Investors Made Last Quarter Valeant Is Hot Cramer never recommends a stock after it pops 15% in a single day. But for Valeant Pharmaceuticals  he's making an exception because this company is now the hottest stock in the drug business. Valeant shot higher after the news it is acquiring Salix Pharmaceuticals for $10 billion. This means Valiant could earn $12 a share in 2015 as opposed to the $10 a share everyone thought the company could earn yesterday. But even without Salix, Cramer said, Valeant's growth is mesmerizing, having delivered 16% growth instead of the 12% analysts were expecting, and $2.3 billion in sales compared to the estimates of just $2.2 billion. Valeant's growth is strong both here in the U.S. and abroad, he noted. How high could Valeant's shares go? Cramer said having just crossed $200 today, he thinks shares are ultimately worth $240. Executive Decision: Tom Jorden  In his second "Executive Decision" segment, Cramer sat down with Tom Jorden, chairman, president and CEO of Cimarex Energy , the oil driller that's run $23 a share since oil prices bottomed in mid-January. Jorden said these are "tough times" for America's oil industry and Cimarex is fortunate to have great assets, a strong balance sheet and an organization that can weather any storm. He said Cimarex has already scaled back operations from 22 to 16 rigs, but the backlog remains strong and he expects production growth for 2015. When asked about oil prices, Jorden said he doesn't know where oil ultimately settles out, but it's clear that $90 a barrel for oil was too high and $50 a barrel is too low. Somewhere in the middle is where prudent companies with low development costs will be able to flourish. Cramer said some oil drillers have a solid plan and cash in the bank, and Cimarex is one of those drillers. Must Read: How U.S. Corporations Use Overseas Cash in U.S. Without Paying Taxes Lightning Round In the Lightning Round, Cramer was bullish on Blackstone Group , Regeneron Pharmaceuticals , Isis Pharmaceuticals , Enbridge Energy Partners , Xcel Energy , Wells Fargo and Yahoo! . Cramer was bearish on Apollo Global Management , BioCryst Pharmaceuticals , Kate Spade , Arris Group and JPMorgan Chase . Executive Decision: John Chisholm In a third "Executive Decision" segment, Cramer sat down with John Chisholm, chairman, president and CEO of Flotek Industries , a technology company in the oil business that helps drillers get the most out of their wells. Chisholm explained that Flotek's "nano fluids" use citrus from orange peels to create fracking fluids that penetrate the pores of hard rocks and help more oil escape. He said with data from over 80,000 wells, it has been proven that a lot of oil will be left in the ground if you don't use nano fluids from Flotek. So how is Flotek's business affected by the plummeting price of oil? Chisholm said that while lower prices does mean less drilling, Flotek currently only has 10% penetration in the market, so even with less activity there is plenty of opportunity to grow. Finally, when asked his opinion on oil prices, Chisholm said that he, and others in the industry, believe it will take until the end of summer before oil prices finally find their footing. Cramer said Flotek is not an oil company, it's a technology company and should be priced as one. Must Read: 4 Stocks on Traders' Radars: Salix Pharma, Ocwen and More 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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How U.S. Corporations Use Overseas Cash in U.S. Without Paying Taxes

Monday, February 23rd, 2015

NEW YORK (TheStreet) -- U.S. multinationals like Apple , Cisco , Microsoft and Oracle  have found a unique way to use some of the estimated $2 trillion in cash that is "trapped" overseas because of U.S. tax laws. Instead of bringing that money back to the U.S., which would make it subject to tax, companies are issuing debt to get the funds they need. "It's an overstatement to say that it's trapped," said Edward Kleinbard, a law professor at USC. Here's how it works: Apple has $124 billion in overseas cash, according to a Citigroup report last month. While it can leave the money overseas tax free, it is required to pay taxes on whatever interest it earns on that $124 billion The IRS refers to this money as "passive income." Because it is paying taxes on the interest income, Apple is allowed to bring it back to the U.S. Except that it doesn't pay taxes on that interest income either. Instead, it issues bonds in the U.S. As part of one offering last year, it paid an interest rate of 3.45% to borrow $2.5 billion over 10 years. Those 3.45% payments are tax deductible, so if Apple can earn an equivalent 3.45% on $2.5 billion of that overseas cash it can repatriate it tax-free. In other words, Apple has the same $2.5 billion it could have withdrawn from an overseas account, except it issued bonds to get it. But the bond issue was essentially free, because the 3.45% it pays is offset with 3.45% coming in tax-free from $2.5 billion invested overseas. It isn't just Apple. Microsoft, which has $76 billion in cash overseas, just sold $10.75 billion in bonds this month in the U.S. Oracle, with $31 billion in cash, raised $10 billion in bonds last year. Cisco, with $44 billion stashed abroad, sold $8 billion in bonds last year. "Firms have lots of liquidity in the United States. The credit markets are wide open. Interest rates are very low and firms in fact borrow like drunken sailors in the United States," Kleinbard says. While companies are unlikely to admit that they take advantage of tax rules in this way, Robert Willens, a longtime Lehman Brothers executive who president of his own tax and accounting service, says it is a virtual certainty. "It's inconceivable to me that this is not what they're doing," Willens said. Kleinbard is still a big proponent of corporate tax reform, and he argues in a paper this month it is more feasible politically than many believe. Still, those who expect repatriation of foreign cash (should that reform ever occur) to kick off a wave of corporate spending will likely be disappointed. That is a big reason why companies didn't increase spending when the U.S. had a repatriation "holiday" in 2004, according to Willens. "I don't believe there was any boost to the economy because the funds were not invested in the manner that Congress wanted them invested," Willens said. Congress intended for the funds to be spent on items such as hiring, advertising, R&D and new plants and equipment. "They forgot to take account of the fact that money is fungible so that the funds that were repatriated were simply replacing other funds that were going to be spent on the approved items." Email messages to spokespeople for Apple and Oracle weren't returned. A Microsoft spokesman declined comment. A Cisco spokeswoman was unable to provide a response in time for publication of this article. Read more: More Activists Are Fine With Management; They Just Want the Cash Follow @dan_freed

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Jim Cramer’s ‘Mad Money’ Recap: Get Ready to Profit on Europe-Induced Weakness

Thursday, February 12th, 2015

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK ( TheStreet) -- Lots of investors are worried about Europe, Jim Cramer told his Mad Money viewers Wednesday. But that's a good thing -- if they're worried, you don't have to be. There are only two outcomes in the standoff between Greece and Germany, Cramer explained. Either the two nations work out their differences or they don't. If they do, stocks will rally. If they don't, the worst-case scenario would be a quick 3% to 5% pullback in the markets, followed by a gigantic relief rally. Why isn't Cramer worried about this so-called "disaster scenario?" He said it's because Greece is a "known event," something that's already largely priced into the markets. When it gets resolved, good or bad, a relief rally will almost certainly follow. When that occurs, Cramer said investors will be clamoring for the stocks of well-run companies including Pepsico , which rallied over 2.4% today on strong sales. They'll also look towards Zoetis , up 4.2% today, because people care for their animals no matter what happens in Greece. Things will continue to look bright for Charles River Labs and Rite Aid , two more names that closed higher. Cramer said it's no accident that Apple , a stock he owns for his charitable trust, Action Alerts PLUS, crossed above a $700 billion market cap, or that Chipotle Mexican Grill is coming back to life. There are plenty of opportunities out there, Cramer concluded. Investors just need to be ready to snap them up on any European-induced weakness. Executive Decision: John Chambers For his "Executive Decision" segment, Cramer spoke with John Chambers, chairman and CEO of Action Alerts PLUS holding Cisco Systems , the networking equipment maker that today posted a 2-cents-a-share earnings beat on a 7% rise in revenue and a dividend boost, all news that sent shares higher by 5%. Chambers said that Cisco is no longer in the business of just selling routers and switches -- it sells "business outcomes" that companies are embracing around the globe. He said sales in Europe are rebounding as countries there are moving faster than the U.S. to embrace new technologies. Chambers said Europe, China and India all "get it" and understand that digitizing their world creates jobs, growth and opportunities. Meanwhile, the U.S. has fallen behind and is now lagging the rest of the world. In nearly every segment Cisco is seeing gains, from routing and switching to data centers, wireless and collaboration, Chambers continued. Companies today want mobility, video and cloud, and Cisco offers solutions for all three. Cramer said Cisco is a stock that's clearly heading higher. Must Read: Dicker and Cramer: Which Analyst's Wild Oil Price Prediction Is Right? What the CEO Knows "Sometimes, a stock is worth a lot more than you think," Cramer told viewers. Sometimes a company's CEO knows it but other times they don't. In the case of Apple, Cramer said CEO Tim Cook clearly know it because Apple is borrowing huge sums of money to buy back a ton of their own shares. Skeptics argue that Apple's market cap, which now bigger than Google and Microsoft , two more Action Alerts PLUS names, combined is simply too high. But Cramer argued Apple is clearly doing better than Google and Microsoft combined. But then there's a company like General Motors , also in the Action Alerts PLUS portfolio. Cramer said that CEO Mary Barra isn't being aggressive enough with GM's capital and should be following Apple's lead and buying back shares as fast as she can. GM has a lot of positives going for it, Cramer concluded, and GM shares are clearly worth a lot more than they trade for today. Executive Decision: Stanley Bergman In his second "Executive Decision" segment, Cramer sat down with Stanley Bergman, chairman and CEO of Henry Schein , which today posted a 6-cents-a-share earnings beat while reaffirming its full-year guidance. Shares of Henry Schein are up 9.5% since Cramer last checked in just three months ago. Bergman called the initial dip in his company's shares after the company reported an overreaction to just one part of the dental supply business. He reiterated that every segment of his company is growing better than expected. Bergman noted that Schein's animal health business continues to be driven by the growing middle class around the globe having more pets, while vaccines continue to be extremely important in keeping people safe against diseases like polio, measles and the flu. When asked about the importance of protection against diseases, Bergman said the U.S. is not ready for a true pandemic and got lucky when it came to Ebola and SARS. He said our country needs a better plan, with government and the private sector working together to stop such outbreaks at the border. Cramer called Henry Schein a "must own" stock for every portfolio. Must Read: These 5 Hated Stocks Could Pop in February: AT&T, Quest Diagnostics and More Lightning Round In the Lightning Round, Cramer was bullish on HomeAway , BB&T Bank , KeyCorp , SunTrust Banks , Acadia Healthcare , Time Warner , Boeing , Energy Transfer Partners , Kinder Morgan , Skyworks Solutions , Cypress Semiconductor , Amgen , Celgene , Regeneron Pharmaceuticals and Affymetrix . Cramer was bearish on Quanta Services , Viacom and Freescale Semiconductor . Am I Diversified? In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets. The first portfolio included Bank of America , Under Armour , Halliburton , Gilead Sciences and Facebook . Cramer called this portfolio "perfection." The second portfolio's top holdings included Alcoa , General Electric , Flextronics , Agios Pharmaceuticals and Xilinx . Cramer said this portfolio can't have two semiconductors and advised selling Xilinx and adding American Electric Power to get some yield. The third portfolio had General Electric, Amgen , Hewlett-Packard , Pfizer and Qualys as its top five stocks. Cramer advised selling Qualys and once again adding American Electric for some yield. The fourth portfolio's top stocks were Pepsico, Colgate-Palmolive , Intel , Apple and Exxon Mobil . Cramer said this portfolio can't have both Apple and Intel. He suggested selling Intel in favor of Bristol-Myers Squibb . Must Read: January Effect: What the Market's Wild Month Means for Rest of 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. 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Why TrimTabs Float Shrink ETF Keeps Beating the S&P

Tuesday, February 10th, 2015
Increased corporate buybacks in recent months along with a low exposure to energy companies has enabled the TrimTabs Float Shrink ETF (TTFS) to outperform the S&P 500.








Jim Cramer’s ‘Mad Money’ Recap: New Month, New Rally in the Making?

Tuesday, February 3rd, 2015

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK ( TheStreet) -- The markets were broken in January, but the tone on Wall Street seems to have changed, Jim Cramer said on  Mad Money Monday. One day does not make a rally but things seem to have shifted in favor of the bulls. Cramer said the markets were able to do something remarkable today -- break the cycle of pain and end the day higher after a weak open. The asymmetrical selling seems to have abated, he added, which was welcome news for a host of sectors. Must Read: Warren Buffetts’ Top 10 Dividend Stocks in 2015 After getting slammed last month on stabilizing oil prices, Cramer said the airlines were one group that was able to rebound today. There were also stocks such as Microsoft , a stock Cramer owns for his charitable trust, Action Alerts PLUS, and American Express , which fell on earnings that weren't all that bad, but were able to eek out gains on the day. Cramer's on record as loving the quarters from Facebook and Apple , two more Action Alerts PLUS stocks, and both of those stocks also saw relief rallies today. Even stocks that truly missed the quarter, such as Qualcomm , saw strength, as did Costco , which announced a special dividend last week that no one noticed, and Amazon.com , which also gave investors positive news. For all of these names, February began as the exact opposite of January, Cramer concluded. Now we just need to see if this new outlook holds true again tomorrow. How Will Oil Recover? After a decisive two-day rally in oil prices, are the proponents of a snap back V-shaped rally right? Not so fast, Cramer said. A slower U-shaped recovery in oil prices is probably more likely. While it's true that several oil companies have announced cutbacks in drilling for 2015, Cramer said investors need to read the fine print because no company has forecast a cut in production for 2015. Once a well is drilled it's more costly to shut it down than it is to keep on pumping, Cramer said. That means there will likely be plenty of oil for the remainder of this year. Cramer also said the oil markets won't likely see any help from overseas markets, which will also drag on oil prices for the foreseeable future. So while reports indicate gas usage here in the U.S. is on the rise, Cramer said he's expecting $80 oil a year from now and not six months from now. Make no mistake, oil prices will be going back up, Cramer concluded -- just not as fast as some proponents claim. Must Read: Apple Becomes Top Luxury Brand Among China's Millionaires Tune Into Harman What can investors learn from some of last night's Super Bowl ads? Cramer said one takeaway is 2015 will be the year of the connected car, a trend that explains the huge rally in Harman International . Cramer spoke with Harman's CEO just a week and a half ago, but since then the company delivered a 51-cents-a-share earnings beat on a 19% rise in revenue. No whining about currency pressures on this conference call, only winning, Cramer quipped. Cramer reiterated that the connected car trend matters and Harman's connectivity, safety, entertainment and navigation technology is exactly what the trend is all about. Moreover, Harman derives 70% of its revenue from software, which is only solidifying its position as the market leader with differentiated technology. It's no wonder shares of Harman jumped from $101 to $125 in a single day and have just kept rising to $131 since reporting its earnings. Cramer said Harman is still inexpensive, trading at just 18.5 times earnings despite its 18.6% long-term growth rate. That makes Harman still worth buying. Off the Charts In the "Off The Charts" segment, Cramer went head to head with colleague Dan Fitzpatrick over the chart of direction of the overall markets and of one stock in particular, United Rentals . According to Fitzpatrick, the daily chart of the S&P 500 is an ugly one, displaying a rare but deadly diamond pattern, one made by increasing volatility -- with higher highs and lower lows, followed by a decrease in volatility where the highs become an impenetrable ceiling. Fitzpatrick was also bearish on United Rentals, a longtime Cramer fave. He noted that after an 800% rally since 2011, the stock is now breaking down, falling below its 20-day moving average, which went from being a floor of support to a ceiling of resistance. It has now fallen below its 200-day moving average. Cramer disgreed with Fitzpatrick's doom and gloom, saying that United Rentals is a very well run company that's not as levered to the oil industry as many believe. He felt he stock was too cheap and is a strong buy on any weakness. As for the overall markets, Cramer said there, too, we may see some consolidation before resuming higher. Must Read: 5 Rocket Stocks to Buy for February Gains: Apple, Mallinckrodt and More Lightning Round In the Lightning Round, Cramer was bullish on Packaging Corp of America , International Paper , Illumina and Whirlpool . Cramer was bearish on Atlas Energy and Southern Copper . Executive Decision: Terry Gregg For his "Executive Decision" segment, Cramer sat down with Terry Gregg, executive chairman of DexCom , the glucose monitoring company whose shares have risen 40% since Cramer last checked in back in August. Gregg showed off some of DexCom's latest innovations including the latest wearable glucose monitoring patches that connect via Bluetooth to a smartphone for real-time monitoring. However, even more exciting is the company's new companion app that allows parents, loved ones and health care professionals to remotely monitor a patient's glucose levels, also in real time, sending alerts to any potential dangerous conditions. Gregg explained that the FDA approved this new technology in just 122 days, recognizing its groundbreaking nature. Gregg also touted DexCom's new deployment system, currently pending approval, which will deploy a monitoring patch in just four steps, down from the current 11 steps. While the company awaits approval for this fourth-generation system, it plans to submit its fifth-generation technology this quarter. Cramer told viewers this is what true innovation looks like. Must Read: Obama’s Proposed Tax on Foreign Earnings Would Hurt Retired Americans 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: Why Own Whiners When You Can Own Winners?

Wednesday, January 28th, 2015

TheStreet is providing FREE access to Jim Cramer’s charitable trust (Action Alerts PLUS) and his premium articles on Real Money this weekend. Please register here. Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK ( TheStreet) -- Would you rather own a winner or a whiner? Jim Cramer asked on  Mad Money Tuesday. Cramer sounded off against all those companies complaining a strong U.S. dollar ruined their quarterly results. Cramer said it's time to throw out the whiners and buy the winners at a great price. Who are these whiners? Cramer said Microsoft , a stock he owns for his charitable trust, Action Alerts PLUS, turned out to be one of them. The company complained about weak sales in China and Japan, sending shares down 9%. Other whiners included Procter & Gamble , down 3.4%, FreeportMcMoran , down 6% and the biggest whiner of them all, Caterpillar , down 7%. Must Read: 16 Rock-Solid Dividend Stocks With 50 Years of Increasing Dividends and Market-Beating Performance Cramer said he's taking a pass on the "whine bar" and sticking with the winners. If Procter is losing sales, those sales must be going to Action Alerts PLUS holding Unilever , based in Europe, or Kimberly-Clark . Cramer is also a fan of domestic winners including Apple , another Action Alerts PLUS holding, and Yahoo!  along with Kroger , Southwest Airlines and just about any of the biotech names including Regeneron . More Winners The markets are driving down the prices of just about every international company as investors attempt to get ahead of real, or perceived, currency problems, Cramer said. But that may create opportunities, if you know where to look. Case in point: Boeing . Cramer said the demand for planes is still strong and military spending around the globe is on the rise. But with 43% of Boeing's sales stemming from overseas, there's a good chance the company might report some currency weakness. Fortunately, shares of Boeing have already come down ahead of earnings, making an attractive entry point. Cramer said Pepsico also fits this pattern, a strong company with falling shares. What other companies can be bought? Cramer said he likes those that triumphed over currency issues, companies such as Honeywell and Starbucks , another Action Alerts PLUS holding. Then there are the stocks that have already "reset" to the new expectations, stocks like Kimberly-Clark. Must Read: Yahoo! Surges After Announcing Tax-Free Spinoff of Alibaba Executive Decision: Scott Wine For his "Executive Decision" segment, Cramer spoke with Scott Wine, chairman and CEO of Polaris Industries  , which rallied 5.4% on strong quarterly results. Wine noted that while Polaris delivered strong results for the quarter, he also said, "We can do better." Polaris can execute even better and manage inventory even better, Wine continues. While Polaris did see significant currency pressures in the quarter, more important for the company was continued innovation. Wine said the company plans on continuing its fierce innovation, delivering higher-quality products to customers even faster and with higher gross margins. When asked whether this week's record snowstorms in the Northeast helped drive sales, Wine confirmed that the more snow there is, the better for Polaris. Cramer said Polaris' stock has been under pressure for no reason and he wants viewers to "have faith" in the company. Off the Charts, Super Bowl Edition In a Super Bowl edition of his "Off The Charts" segment, Cramer went head to head with colleague Bob Lang to pit four Seattle-based companies, Costco , Nordstrom , Microsoft and Starbucks against four New England-based companies, Boston Beer , CVS Health , Skyworks Solutions and Dunkin Brands . In the first matchup between Costco and Boston Beer, Lang noted Costco has a nice floor of support while Boston Beer is in overbought territory and is likely to take a rest. In this matchup, Costco wins. Next, Lang said Nordstrom is in a solid uptrend and has a nice entry point. CVS is also rallying strong with tremendous performance. In a close matchup, Lang gave the edge to Nordstrom. In the next contest, Lang said today's breakdown of Microsoft sent it below its 200-day moving average, meaning it will likely trade sideways. Skyworks, however, has been rallying on strong volume. Advantage Skyworks. Finally, Lang called Starbucks the winner among the coffee group, noting a strong MACD momentum indicator and a recent gap higher with no resistance above its all-time high. Meanwhile, Dunkin has seen a strong rally since December but also displays the dreaded head-and-shoulders pattern. With a final score of Seattle three, New England one, Cramer declared his stock market winners. Must Read: Weaker-Than-Expected Winter Storm Will Still Hurt Retailers Lightning Round In the Lightning Round, Cramer was bullish on First Horizon National . Cramer was bearish on State Street , Achillion Pharmaceuticals and Martin Midstream Partners . Executive Decision: Tim Walbert In his second "Executive Decision" segment, Cramer spoke with Tim Walbert, chairman, president and CEO of Horizon Pharmaceuticals , a small biotech company with five drugs on the market, four of which stemmed from smart acquisitions. Walbert said Horizon's recent acquisitions have been very exciting because his company is able to provide focus to drugs that were lost when part of bigger pharma companies. Walbert also touted Horizon's "Prescriptions Made Easy" program that aims to do the right thing for patients by making treatments easier to access and more affordable when needed. In addition to helping to widen distribution of its drugs, Horizon is also actively developing them to treat new indications, with some exciting Phase III studies currently underway. Cramer said Horizon is a niche player that has a lot of positive things going for it. Must Read: Facebook Quarterly Earnings Report: Top 4 Things to Watch For 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 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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