Cramer's 'Mad Money' Recap: Patterned Boldness

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The Rubber Match

The best way to make money is to find the patterns that send stocks into bull mode, Jim Cramer told "Mad Money" viewers Friday, and that's why he said to take a look at Newell Rubbermaid(NWL Quote).

To identify the winning formula that will push Rubbermaid higher, Cramer said to look no further than Hewlett-Packard(HPQ Quote), a company that went from $22 to $34 a share in just about a year.

The stock jumped 55% in a matter of months, and Cramer said the H-P story "has gold in it."

For starters, the pattern begins with a great company that ousts a bad chief executive, he said. In the case of H-P, it got rid of Carly Fiorina and replaced her with Mark Hurd, a man who had the potential to turn the company around.

The other key to H-P's winning formula was low expectations, he said, because no one thought Hurd would salvage the company so quickly. That allowed people to get in before the stock jumped, Cramer said.

The same pattern is being repeated at Newell Rubbermaid, a company Cramer said has fabulous brands and has already gotten rid of a bad CEO.

And now the company's acting replacement, Mark Ketchum, has announced that he will stay on as chief executive.

Cramer said that his record makes you want to get behind him, since he spent three decades at Procter & Gamble(PG Quote) PG, which he called "the greatest training ground on earth."

He also said that there are "low expectations in spades, with analysts saying that when commodity costs come down and when the restructuring begins to pay off that the company might be a buy.

But Cramer said that if investors wait for that stuff to happen, by then the stock will be up so huge that it will be too late.