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Cramer's 'Mad Money' Recap: Sept. 24

Scott Rutt

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Jim Cramer told viewers on his "Mad Money" TV show Wednesday that Treasury Secretary Henry Paulson is doing a terrible job of selling the bailout plan.

Instead of speaking in plain English, Paulson has made his sales pitch much more difficult to comprehend by using Wall Street rehetoric.

Cramer said that the Paulson plan should be called "Invest In America" and not be referred to as a "bailout" of Wall Street. He said the plan is about keeping people in their homes and banks having the money to lend so that kids can go to college. "It's about cash in the ATM machine," he said, and keeping the problems of Wall Street from spilling over onto Main Street.

Cramer said he's mystified that a plan that is designed to avert economic disaster and possibly turn a profit for taxpayers, could be so hated. He said the financial markets revolve around credit and confidence, two things that totally disappeared last week.

Cramer made his point very clear, saying without this plan, unemployment could skyrocket to 20% to 30%. This is not about saving Wall Street executive salaries, he said, "this affects you." He told viewers they need to stop looking at the plan as a bailout and start looking at the facts.

Cramer advocates doing whatever it takes to get the Paulson plan passed and passed quickly.

Spicy Stock

In his hunt for stocks that can survive even the worst of economic times, Cramer recommended spice-maker McCormick (MKC Quote).

Cramer's thesis for McCormick is simple: In hard, uncertain economic times, McCormick's spices sell well because people eat out less and cook more at home. The company commands 50% of the herb, spice and marinade market in the U.S. and France and 40% of the market in the UK.

Cramer likened McCormick to his earlier recommendation of private-label food maker Ralcorp (RAH Quote). With fewer people buying luxury foods and instead opting for store brands, the demand for spices and sauces can only increase. A recent study indicated that 37% of consumer mentioned price as the No. factor influencing their food buying decisions, ahead of even location.

Cramer said McCormick is also a play on healthier eating. The company is currently promoting the many health benefits of its spices and other products In addition, Cramer called the company very shareholder friendly, with a 2.3% dividend yield and $49 million left in its share repurchase program.

"Bad markets send good stocks down," Cramer told viewers. However, he said he would only be a buyer of McCormick if it reports a better-than-expected quarter this week. If the company misses the estimates, Cramer told viewers to take a pass as the markets will surely send shares tumbling.

Staying a Step Ahead

Cramer welcomed Dan Deinst, CEO of Sims Metal Management (SMS Quote), to the show for another take on the health of the economy outside of Wall Street.

Deinst said that while the scrap metal business is, has been and always will be a volatile one, his company is still thriving. He said the world has never seen a business like Sims Metal before and his company is providing real leadership in trying economic times.

Deinst said that while smaller competitors are now choking on falling steel prices, Sims has been able to use its size to both foresee and capitalize on falling commodity prices. He said Sims has been able to lock in lower prices and continues to benefit from the sustainability of its business model.

Cramer said Sims is another example of a "real world" company thriving outside of the financial chaos.

Am I Diversified?

Cramer spoke with callers and evaluated their portfolios. The first caller told Cramer he had these stocks in his portfolio: Eaton (ETN Quote), Johnson Controls (JCI Quote), Petrohawk (HK Quote), Trinity Industries (TRN Quote) and Genentech (DNA Quote).

Cramer said that Eaton, Johnson Controls and Trinity are three of a kind in the industrial space, calling the portfolio far too concentrated in that area. He recommended adding a defense stock and a consumer stock. He also said to sell Genentech and not get caught up in the takeover bid.

The second caller's top holdings included Caterpillar (CAT Quote), Covance (CVT Quote), Transocean (RIG Quote), Whirlpool (WHR Quote) and Masco (MAS Quote).

Cramer said this portfolio was also too concentrated, only this time in household appliances, with Whirlpool and Masco. He recommended selling Whirlpool and replacing it with a food or beverage stock.

The third caller's portfolio included Boeing (BA Quote), Johnson & Johnson (JNJ Quote), Safeway (SWY Quote), Duke Energy (DUK Quote) and Spectra Energy (SP Quote) as their top five stocks.

Cramer identified Duke and Spectra as two of a kind and recommended swapping Safeway in favor of Kroger (KR Quote). He also said that Boeing, which is in the thick of labor troubles, needed to be sold.

The final caller's portfolio included AK Steel (AKS Quote), Schlumberger (SLB Quote), McDonald's (MCD Quote), Coca-Cola (KO Quote) and Apache (APA Quote).

Cramer flagged Schlumberger and Apache as two oil stocks, noting Schlumberger should be replaced by a defense stock.

Lightning Round

Cramer was bullish on Research In Motion , Apple (AAPL Quote), Sociedad Quimica , Exco Resources (XCO Quote), Ultra Petroleum (UPL Quote), Equitable Resources , America Movil (AMX Quote), Nordic American Tanker , Frontline (FRO Quote) and Comcast (CMCSA Quote).

He was bearish on Ford Motor (F Quote), Gushan Energy (GU Quote), James River Coal , Diana Shipping (DSX Quote) and NYSE Group (NYX Quote).

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