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Cramer's 'Mad Money' Recap: Finishing Strong

TheStreet.com Staff

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The best way to finish the year is by taking advantage of the opportunity in stocks being "marked up," Jim Cramer told viewers of his "Mad Money" TV show on Friday.

Cramer said he has five targets, which not only should get an end-of-the-year performance boost from institutional shareholders buying additional shares, but are worth owning anyway.

First, Cramer said, is Jacobs Engineering (JEC - Cramer's Take - Stockpickr). This company has a strong demand for new projects and should see increased profits.

Next is MEMC Electronic Materials (WFR - Cramer's Take - Stockpickr), which makes the ever-popular silicon wafers, has a new contract with Conergy worth $7 billion or $8 billion and could have a similar contract next year.

Another markup target is Apple (AAPL - Cramer's Take - Stockpickr), a stock that needs no introduction, Cramer said. Apple's product demand is strong, and it's a stock that money managers need to show they own at the end of the year.

Also, video-game retailer GameStop (GME - Cramer's Take - Stockpickr), which is selling the popular Nintendo Wii console, should benefit from an end-of-the-year markup.

Finally, there is Monsanto (MON - Cramer's Take - Stockpickr), which sells hybrid corn seeds that increase corn production.

There is some time sensitivity involved here, so people should consider pulling the trigger next week on these stocks, Cramer said.

Welcome to the Wall of Shame

Cramer has removed both Marsh & McLennan's (MMC - Cramer's Take - Stockpickr) Mike Cherkasky and Sprint's (S - Cramer's Take - Stockpickr) Paul Saleh from his "CEO Wall of Shame" because both are no longer at the helm of their respective companies.

But Cramer has inducted Gary Dunton of MBIA (MBI - Cramer's Take - Stockpickr) as a new chief on the Wall of Shame -- a place reserved only for the men and women who destroy a company's value by having their name at the top of the masthead.

"He is a man I believe you will hear quite a bit about in the coming weeks as his company fights for its life," Cramer said. "If the board sacrificed Dunton, the company would stand a better chance at surviving."

Agrium's Green Thumb

The demand for agriculture products is huge, and many companies are benefitting, Cramer told viewers. One such company is Agrium (AGU - Cramer's Take - Stockpickr), a long-term Cramer favorite.

Not only is Agrium priced well below where it should be, but it looks like it's poised to profit from its acquisition of UAP Holding (UAPH - Cramer's Take - Stockpickr), he said.

In fact, the deal reminds Cramer of when Freeport-McMoRan(FCX - Cramer's Take - Stockpickr) bought Phelps Dodge. Back in March, Freeport issued stock to pay for Phelps Dodge. Freeport's offering broke through the "print" price -- the price of the deal -- which shook out a lot of short-term investors and took down the share price, he explained. However, since then FCX is up 65%.

Agrium did the same thing to acquire UAP, and its stock went down as well, Cramer said. Even though the stock has recovered a bit, "this looks like the FCX story all over again, so being up seven doesn't mean anything."

Moreover, Agrium, although up this year, is the cheapest in its group, he said. But that's not to say that Deere (DE - Cramer's Take - Stockpickr), Monsanto (MON - Cramer's Take - Stockpickr) and Bunge (BG - Cramer's Take - Stockpickr) are too expensive, because they're not, Cramer stressed. However, "Agrium has a whole lot higher to go."

Speculation Friday

For Speculation Friday, Cramer suggested a flier on LSB Industries (LXU - Cramer's Take - Stockpickr), a company that has exposure to both the agriculture business and the climate-control business.

This stock, he said, is unknown on Wall Street, but as it starts to receive attention it should go higher.

Cramer said he likes the fact that the company is in the climate-control industry because of the fact that Trane (TT - Cramer's Take - Stockpickr), a heating and cooling company, got a big bid from Ingersoll Rand (IR - Cramer's Take - Stockpickr) on Monday. That makes Cramer believe the heating and cooling business has a lot more going for it than previously thought.

It's possible LSB could become the next Trane, Cramer said.

He also likes that the company has "great visibility" with two deals that should last through 2010.

The main reason it's a speculative play is because 95% of its business is in the U.S., Cramer said. However, if things go right and its climate-control business gets the legislative mandates it needs, it could be a big winner.

The Bridgeway Way

Cramer asked Bridgeway Aggressive Investors(BRAGX - Cramer's Take - Stockpickr) fund owner John Montgomery about his strategy, which allows the fund to make money in good times and bad.

"We focused on not only the return, but the other half of that is controlling risk," Montgomery responded. In 1999, when technology went through the roof, the fund was exposed to that sector, he said. But coming into 2000, Bridgeway's overlay of risk kicked in and they started cutting back from a risk control standpoint.

When asked how he determines if a stock is expensive or not, Montgomery said the fund follows the disciple of its quantitative models.

Cramer noted to viewers that Bridgeway has seen an average return of more than 18% in the last five years.

Lightning Round

Cramer was bullish on Garmin (GRMN - Cramer's Take - Stockpickr), First Solar (FSLR - Cramer's Take - Stockpickr), MEMC Electronic Materials (WFR - Cramer's Take - Stockpickr), IntercontinentalExchange (ICE - Cramer's Take - Stockpickr), Occidental Petroleum (OXY - Cramer's Take - Stockpickr), Horsehead (ZINC - Cramer's Take - Stockpickr), Freeport-McMoRan (FCX - Cramer's Take - Stockpickr), Lundin Mining (LMC - Cramer's Take - Stockpickr) and Johnson Controls (JCI - Cramer's Take - Stockpickr).

Cramer was bearish on Star Bulk Carriers (SBLK - Cramer's Take - Stockpickr),

Sterlite Industries India (SLT - Cramer's Take - Stockpickr), Yingli Green Energy (YGE - Cramer's Take - Stockpickr), Blue Coat Systems (BCSI - Cramer's Take - Stockpickr), Art Technology (ARTG - Cramer's Take - Stockpickr) and Seaspan (SSW - Cramer's Take - Stockpickr).

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

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