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Cramer's 'Mad Money' Recap: Piercing the Negativity

TheStreet.com Staff

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"When opportunities present themselves, you need to take action," Jim Cramer told viewers of his "Mad Money" TV show Thursday.

Cramer said it's easy to say the market is all bad, but that's just not true. He said there are excellent managers out there who can deliver on their promises."You have to trust the CEOs who have earned it," he said.

When Indra Nooyi, chairman and CEO of Pepsico (PEP Quote - Cramer on PEP - Stock Picks), last appeared on "Mad Money," she promised Cramer that the company would be introducing new products, including healthier snacks, and would get a better grip of the company's raw costs. "She delivered," he asserted, "and Pepsi finished up $3.68 a share today."

Cramer has also been behind Mike Ullman, chairman and CEO of JC Penney (JCP Quote - Cramer on JCP - Stock Picks). Cramer said JC Penney has turned the corner, with its venture with Ralph Lauren and what he called the best online store of any of the major retailers.

He said Ullman is just too good a manager to have two bad years in a row. JC Penney closed Thursday, up $3.72 a share.

Finally, Cramer gave credit to Bob Iger, chairman and CEO of The Walt Disney Co. (DIS Quote - Cramer on DIS - Stock Picks).

Cramer has praised Disney's strong quarter, especially its theme park revenues. There were a lot of people doubting Disney and Iger, but they were wrong, he said.

Bottom line, Cramer concluded: "Trust the CEOs who have earned your trust."

Brazil's Hot Cellphone Market

"The best play on the continued prosperity in Brazil isn't in Brazil," Cramer told viewers. "It's in Mexico."

He touted Mexican telecommunication giant America Movil (AMX Quote - Cramer on AMX - Stock Picks) as one of the best ways to invest in Brazil's growth.

America Movil operates the largest cellphone network in Latin America, and Brazil is the fastest growing country in the region for the company, he said.

Although the company has two other competitors in the market, Cramer said, "America Movil is the best of the breed."

The company recently reported quarterly earnings, delivering 84 cents a share and exceeding analysts' estimates by 8 cents a share.

Cramer said the company beat every metric that mattered, as it added 10.1 million new subscribers and increased its stock buyback program.

According to Cramer, the company trades at just 14 times this year's earnings estimates, which makes it cheaper than Verizon (VZ Quote - Cramer on VZ - Stock Picks), which only has a fraction of America Movil's growth.

Cramer also reminded viewers that Carlos Slim, the richest man in the world, owns 33% of America Movil.

Don't Touch Tech

Cramer said he's not buying that there's a rally coming in tech stocks.

Headliners like Cisco (CSCO Quote - Cramer on CSCO - Stock Picks), Microsoft (MSFT Quote - Cramer on MSFT - Stock Picks), Intel (INTL Quote - Cramer on INTL - Stock Picks), Google (GOOG Quote - Cramer on GOOG - Stock Picks) and Apple (AAPL Quote - Cramer on AAPL - Stock Picks) may appear like they're bottoming, "but they aren't," Cramer says.

"Now is the time on the calendar when big institutions begin selling tech," Cramer said. When that happens, the stocks get slaughtered.

Technology is seasonal and summer is also the slowest season. "It's been that way for years," Cramer said. He also cited economic sluggishness in Europe and continued low interest rates as two other huge negatives for tech stocks.

These three factors create a "toxic combination" for technology, Cramer said, adding he would use any upcoming bounce in the stocks to escape from tech. He told viewers a good time to sell tech stocks would be before the Goldman Sachs tech conference in two weeks.

Hoping Housing Gets Better

Cramer welcomed Bruce Carbonari, the new president and CEO of Fortune Brands (FO Quote - Cramer on FO - Stock Picks) to the show to discuss the company's disappointing earnings.

Fortune is a huge conglomerate with a wide portfolio of goods, including products for the home as well as liquor and golf brands.

The housing slump has weighed on the company's sales. But Carbonari said the current weakness in housing is only a correction and not long term. He said the company continues to invest in its brands to deliver higher growth in the future.

Carbonari would not comment on the company's potential acquisition of the "Absolut" Vodka brand, but he did say the brand has significant value and fits in well with its other spirits business.

Cramer said his opinion on Fortune rests solely on the current housing crisis. He said investors should not buy Fortune if they believe the housing crisis is going to drag on for longer than six months.

Sudden Death

Cramer was bearish on SiRF Technology (SIRF Quote - Cramer on SIRF - Stock Picks) and Broadcom (BRCM Quote - Cramer on BRCM - Stock Picks).

Lightning Round

Cramer was bullish on St. Jude Medical (STJ Quote - Cramer on STJ - Stock Picks), Avery Dennison (AVY Quote - Cramer on AVY - Stock Picks), Accenture (ACN Quote - Cramer on ACN - Stock Picks), Akamai Technologies (AKAM Quote - Cramer on AKAM - Stock Picks), China Life Insurance (LFC Quote - Cramer on LFC - Stock Picks), Focus Media (FMCN Quote - Cramer on FMCN - Stock Picks), Baidu.com (BIDU Quote - Cramer on BIDU - Stock Picks), Riverbed Technologies (RVBD Quote - Cramer on RVBD - Stock Picks), Capital One Financial (COF Quote - Cramer on COF - Stock Picks) and Apollo Group (APOL Quote - Cramer on APOL - Stock Picks).

Cramer was bearish on Boston Scientific (BSX Quote - Cramer on BSX - Stock Picks), Cypress Semiconductor (CY Quote - Cramer on CY - Stock Picks), Infosys Technologies (INFY Quote - Cramer on INFY - Stock Picks), American Express (AXP Quote - Cramer on AXP - Stock Picks), Triumph Group (TGI Quote - Cramer on TGI - Stock Picks), JetBlue Airways (JBLU Quote - Cramer on JBLU - Stock Picks) and ITT Educational Services (ESI Quote - Cramer on ESI - Stock Picks).

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.