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Cramer's 'Mad Money' Recap: A Gift From J. Crew

TheStreet.com Staff

Click here for an archive of Cramer's "Mad Money" recaps.

"Tonight it's time to attack enthusiasm," Jim Cramer told viewers of his "Mad Money" TV show Thursday.

While Cramer said he enjoys enthusiasm, if market players want to make money, they must "check their enthusiasm at the door," he said.

Taking Global Sources (GSOL) as an example, Cramer said that when he mentioned it as a buy last week, the stock "went up huge" immediately after hours.

He urged people not to buy after hours, advising them to take a day to do their homework on a stock before buying it.

J. Crew (JCG) spiked after it reported its last quarter, but as it was likely that the stock would make its way down again, Cramer said this is the type of enthusiasm people should have sold.

After waiting for a pullback from J. Crew, the market finally got one Thursday, he said. The retailer closed that day at $39.99, and Cramer believes it's time to pull the trigger on this stock -- but not all at once, he warned.

Even though J. Crew's been trading down on good numbers, it should still continue to trade down a bit, Cramer said. He thus recommended that people put their position in J. Crew carefully and then keep track of it.

The fact that the company tends to underpromise and overdeliver is the main reason to buy this stock, he went on to say. Also, Cramer said he likes J. Crew's CEO, Millard "Micky" Drexler, who resigned from Gap (GPS) in May 2002.

If investors had stuck with Gap from 1995 to 2002 while Drexler was there, they would have been up 368% in the stock in that time period.

Moreover, since Drexler came to J. Crew in 2003, "he has been running a very tight ship," Cramer said. He believes the company's estimates are too low, which is why he recommends that people buy it on a pullback.

"The bottom line: You're being handed a gift with this pullback in J. Crew," Cramer said. "It is a gift that keeps on giving because I don't think this pullback will be through until J. Crew's share lockup expires on Dec. 27."

He advised viewers to do their homework and put a quarter of their J. Crew position in now. Further, he told people to be patient and wait for a pullback to buy more of the company's stock.

Holiday Heist

As there are no more obvious ways to make money off Christmas, Cramer said he has come up with a list of ancillary ways of exploiting the holiday season.

On his Dec. 11 "Mad Money" show, Cramer named Safeway (SWY) as his first auxiliary Christmas play, and on Thursday, he named GSI Commerce (GSIC) as his second.

Once again, he insisted that GSI investors refrain from buying the stock after hours.

GSI is in the business of Web site administration, Web design, maintenance, order management, online marketing and other Web-related services for companies such as Dick's Sporting Goods (DKS) and Burberry.

The reason many people don't know about the company is because everything it does is behind the scenes, Cramer said. Go with this stock if you want to make money, he said.

Not only does it have "Google-esque (GOOG) growth," but it's also trading at a 35% discount to the lagging Amazon (AMZN), its competitor, he said.

Moreover, Cramer believes that GSI is "criminally undervalued" and "truly an incredible business." Also, as it is not one single company, it is a "play on the secular growth of online retail" in general, he said.

GSI Commerce has done a better job than Amazon and is a play on one of the strongest secular trends out there, Cramer continued. Further, Cramer believes that the company should make a heavy profit this holiday season.

"This one is a buy," he said.

Sell Block

In his "Sell Block" segment, Cramer recommended people ring the register on some of the homebuilders, which were all up big Thursday.

Out of the homebuilders, he said it's likely KB Home (KBH) could get a takeover bid.

But even though there are a lot of great reasons to own KB Home, Cramer believes it's time to sell the homebuilders, including KB Home, because these stocks are high. If market-players don't want to relinquish their positions in KB Home completely, he said they should at least take some off the table.

Moving on, Cramer said if people listened to his recommendations and bought Brazil-based Banco Bradesco (BBD) they should have caught a double gain in this stock.

The play has gone from $19 to $38 since Cramer advised buying it and now it's time to get out of it and cash in on that gain, he said.

He advised swapping out of itm and if people still need to have Brazilian exposure, he suggested buying Banco Itau (ITU), which is "better at managing its assets than Banco Bradesco."

"Take all of Banco Bradesco off the table and buy a quarter of your position in Banco Itau," Cramer said.

Finally, he said he was wrong about United Technologies (UTX) and said to sell it on any strength.

The fact that J.C. Penney (JCP) is offering a dividend does not mean its growth has slowed, Cramer told a viewer in his "Mad Mail" segment.

It is an example of a company that has excess cash and wants to return value to its shareholders, he said.

Responding to his next piece of mail, Cramer said that although some people were "disappointed" with SAIC's (SAI) quarter and sold it, he believes that people who have sold it will be wrong and the stock will go up.

He told another mailer that he refuses to recommend nuclear fuel or uranium stocks as they are too speculative.

Lightning Round

Cramer was bullish on Hain Celestial (HAIN), Walter Industries (WLT), Las Vegas Sands (LVS), Exxon Mobil (XOM), Lundin Mining (LMC), Cisco (CSCO), AES (AES), Archer Daniels (ADM) and Seagate Technology (STX).

Cramer was bearish on SunOpta (STKL), Intuitive Surgical (ISRG), Dynamic Materials (BOOM), Nuance Communications (NUAN), Intevac (IVAC), Suntech Power (STP) and NutriSystem (NTRI).

For more of Cramer's insights during the Lightning Round, click here.

Want more Cramer? Check out Jim's rules and commandments for investing from his popular book by clicking here.