Mad Money Recap

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Cramer's 'Mad Money' Recap: Sure-Fit Stocks

TheStreet.com Staff

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

Just like any other year, this year many Americans made the resolution to lose weight. Therefore, the first three months of the year is the best time to own weight-loss companies, Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

Cramer named Life Time Fitness (LTM Quote) as his "No. 1, best-of-breed, health club pick," saying he is a "huge fan" of this weight-loss stock.

The health fitness business is a big industry that's getting bigger, he said. And as the weight-loss play is about people trying and failing time and time again to lose weight, it is everlasting, Cramer added.

Of the two high-growth fitness clubs, Cramer prefers Life Time to Town Sports (CLUB Quote).

Not only does Life Time have better operating margins and higher revenue per member than Town Sports, but also based on its growth, it is not an expensive stock, he said.

In addition, Life Time is in a better position with a better business model and has larger clubs with better amenities, Cramer said.

It is true that Prudential recently gave Life Time an underweight rating, meaning a sell, he said. But "this one deserves to be a buy."

Even though it will cost more for Life Time to expand into wealthier areas, that's where the company will be able to charge outrageous prices and make more money, Cramer said, arguing Prudential's reasoning for its downgrade.

"Go with Life Time," he said.

Food for Thought

NutriSystem (NTRI Quote) has gotten "crushed" in the last couple of days because it came out with "awful" guidance, Cramer told viewers.

The company, which makes preprepared foods and sells it directly to consumers, was "flying high, then got pounded," he said.

But even though NutriSystem looks cheap, Cramer believes that the stock is too dangerous to own now, just as it was to own it 20 points higher.

"It is done," he said, adding that the market won't get fooled again by the stock. Think of it as a "one-hit wonder," Cramer said. It will go through "a long period of decline."

NutriSystem's average customer stays only 10 weeks before leaving, he said. And given the fact that almost no one out there hasn't been exposed to it -- as its ads are everywhere -- Cramer doesn't believe that the stock has any reason to do well.

"Forget it," he said. Instead, look at Weight Watchers (WTW Quote), Cramer advised. It has growth you can count on, and it has great customer retention.

Am I Diversified?

In his "Am I Diversified?" segment, Cramer's first caller named the following five top stocks: Bank of America (BAC Quote), Medtronic (MDT Quote), Nxstage Medical (NXTM Quote), Respironics (RESP Quote) and Amgen (AMGN Quote).

Cramer said the portfolio was not at all diversified. Other than Bank of America, the other four are related to health care, he said, advising the caller to get into other sectors.

Cramer's next caller owned the following five stocks: Genentech (DNA Quote), Google (GOOG Quote), Altria (MO Quote), NYSE Group (NYX Quote) and Goldman Sachs (GS Quote), the latter three of which Cramer owns for his charitable trust, Action Alerts PLUS.

Cramer blessed the portfolio as diversified.

In his "Mad Mail" segment, when a mailer asked how to buy Waste Services (WSII Quote) with a limit order, Cramer urged the viewer to refrain from acting on stocks the same night he recommends them.

Day one, do your homework; day two, let others get discouraged and throw the stock out; and then on day three, back up the truck, he said.

During his "Sudden Death" round, Cramer was bullish on GameStop (GME Quote), Alcoa (AA Quote) and Deere (DE Quote).

Lightning Round

Cramer was bullish on Zimmer Holdings (ZMH Quote), Hewlett-Packard (HPQ Quote), VeriFone (PAY Quote), Southern Copper (PCU Quote), Phelps Dodge (PD Quote), Syneron Medical (ELOS Quote), BEA Systems (BEAS Quote), NYSE Group (NYX Quote) and NTL (NTLI Quote). Advanced Micro Devices (AMD Quote),

Cramer was bearish on EMC (EMC Quote) and Intel (INTC Quote).

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.