Mad Money Recap

Cramer's 'Mad Money' Recap: Finding Sustenance

 

Cramer and Greenberg also tangled over another stock, Johnson Controls (JCI). "What's the story there? How could you not love that quarter?" asked Cramer.

Greenberg said Johnson Controls is very hard to analyze, and it is still mostly a cyclical, highly-levered auto-parts company. He said even York International (YRK), which is being acquired by Johnson Controls, mentioned recently "how cyclical part of its business is. JCI may rise or fall based on just because it is so hard to get your arms around. That to me is a huge red flag."

Cramer said he believes JCI is better than rivals Delphi (DPHIQ) or Dana (DCN) because "by making it difficult to understand, [it] has lost that Detroit component that's been dragging it down."

Finally, Cramer asked Greenberg about Amylin Pharmaceuticals (AMLN). Greenberg was bullish on Amylin recently when the stock was at $39, said Cramer. Cramer had advised people to "ring the register." The stock closed at $33.52 Friday.

"Jim, you were right on JCI. I will be right on Amylin, and in the end, I will be right on JCI," said Greenberg.

Quelling Qualcomm Fears

Cramer would be buying Qualcomm (QCOM) after the stock dropped 4.6% Friday on news some of its customers and competitors were suing for allegedly charging too much money for licenses to use its technology. Cramer said Qualcomm's stock didn't deserve to be down as much as it was.

Cramer believes investors sold the stock out of fear Qualcomm could wind up like Research In Motion (RIMM), which faces a real risk of losing its patents as a result of lawsuits, said Cramer. But Qualcomm's situation is nothing like Research In Motion's, he said.

Cramer believes the odds are good Qualcomm will prevail. Even if it doesn't, the worst-case scenario for Qualcomm, he said, is that Qualcomm might have to charge less for its technology licenses and pay damages, he said. It is not in danger of losing its patents, he said.

Lightning Round

Bullish

Cramer was bullish on Costco Wholesale (COST), Procter & Gamble (PG), Intel (INTC), National Semiconductor (NSM), Broadcom (BRCM), Best Buy (BBY), Lexar Media (LEXR), Wellman (WLM), Syneron Medical (ELOS), IntraLase (ILSE), OraSure Technologies (OSUR), Southwest Gas (SWX), PNM Resources (PNM), Valero Energy (VLO), Yellow Roadway (YELL), Intuitive Surgical (ISRG) and TurboChef Technologies (OVEN).

Bearish

Cramer was bearish on Energizer Holdings (ENR), California Micro Devices (CAMD), Southwest Airlines (LUV), Blackboard (BBBB), Shaw Group (SGR), Audible (ADBL), Sigma Designs (SIGM), Unisys (UIS), PolyOne (POL), Mesa Air Group (MESA), Cutera (CUTR), Olin (OLN), Georgia Gulf (GGC), Lawson Software (LWSN), Cosi (COSI), CSX (CSX) and Schnitzer Steel Industries (SCHN).


Interested in more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here. It's a series of articles from Cramer on how to become a better investor. The following table lists some of the rules that Cramer dissects.

1. Pigs Get Slaughtered 2. It's OK to Pay the Taxes
3. Don't Buy All at Once 4. Buy Damaged Stocks
5. Diversify to Control Risk 6. Do Your Homework
7. Don't Panic 8. Buy Best-of-Breed
9. Defend Some Stocks 10. Don't Bet on Bad Stocks
11. Own Fewer Names 12. Cash Is for Winners
13. No Regrets 14. Expect Corrections
15. Know Bonds 16. Don't Subsidize Losers
17. No Room for Hope 18. Be Flexible
19. Quit When Execs Do 20. Patience Is a Virtue
21. Be a TV Critic 22. When to Wait 30 Days
23. Beware the Hype 24. Explain Your Picks
25. Find the Bull Market
Check back for more of Cramer's Rules

>To order reprints of this article, click here: Reprints

At the time of publication, Cramer was long Altria, Intel, Procter & Gamble and Qualcomm.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for ActionAlertsPLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." Cramer appreciates your feedback and invites you to send him an email by clicking here.

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