Cramer's 'Mad Money' Recap: Pricing Powers the Market

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Jim Cramer let viewers of his "Mad Money" TV show in on a secret Wednesday and told them there is one reason why certain stocks are going up, while others are going down: pricing power.

Cramer said he has a list of the top-10 sectors and stocks with the power to raise prices.

Before listing the stocks, he told viewers of certain sectors that do not possess pricing power. He pointed out Advanced Micro Devices(AMD Quote) and Intel (INTC Quote) as two examples of companies that are in the midst of a pricing war.

When companies fight over pricing, everyone loses, he said. But it's not just computer chips that are bad, he added. General Motors (GM Quote) and Ford (F Quote) are powerless too, as are Dow Chemical (DOW Quote) and Gap (GPS Quote).

Discount online brokers, media companies and software/hardware companies, such as Nortel (NT Quote) and Lucent (LU Quote), are having pricing trouble, too, he said, adding that the telecom sector doesn't have an ounce of pricing power.

10 Sectors With Plenty of Juice

All of these stocks are getting killed because they don't have pricing power, he said. So which stocks can and do make you money? Cramer had a list of 10 price increases that can make you money.

First, he started with the commercial real estate sector, while pointing out a Wall Street Journal article that said Manhattan office space is a hot spot. To take advantage, Cramer said, he is in favor of Equity Office Properties Trust (EOP Quote) and Vornado Realty Trust (VNO Quote).

"These stocks shouldn't get hit with downside surprises," he said. "They have pricing power in the real estate area."

The second sector Cramer concentrated on was aerospace market, which he called a duopoly. In this, he recommended buying Boeing (BA Quote).

Its competitor, Airbus, is not doing well and can't seem to build its planes right. But all the while, he said, the demand for planes is increasing, and Boeing is likely to take prices up as Airbus falls apart.