This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cramer's 'Mad Money' Recap: It's Time to Buy

Click here for an archive of Cramer's "Mad Money" recaps.

"The market has gotten way too negative," Jim Cramer told viewers of his "Mad Money" TV show Tuesday.

"The market took down a lot of good stocks that don't have anything to do with the economy, consumer spending or Fed chairman Ben Bernanke," he said. "Pull the trigger and just buy something."

Cramer still sees bull markets in agriculture, defense, mining and minerals, oil and natural gas and healthcare cost containment stocks. He reiterated his buys on natural gas driller Chesapeake Energy (CHK) and Agnico-Eagle Mines (AEM) in the gold sector.

He also defended his call on fertilizer giant Potash (POT), saying, "Anyone who thinks agriculture stocks are not going up is just stupid."

Cramer also identified several recession-proof stocks with big dividends as a safe place to invest, including BP (BP) and AT&T (T), along with Altria (MO) and Verizon (VZ), both of which he owns for his charitable trust Action Alerts PLUS .

One area Cramer recommended staying far away from is bank stocks. He warned that many banks still need to raise capital, and that puts their stocks and dividends at risk. He was especially leery of Citigroup (C), Freddie Mac (FRE) and Fannie Mae (FNM).

"Now is the time to buy," said Cramer, "because everyone seems petrified." He sees tremendous short-selling and put-buying in the market, saying that usually signals a bottom is near.

"Anything positive in the market will have a huge impact," he said.

Defending the Merger

Cramer once again voiced his outrage at efforts in Congress to block the merger of Sirius Satellite (SIRI) and XM Satellite Radio (XMSR).

He dismissed the argument that a combined Sirius-XM would raise pricing and noted the company's plans to offer a la carte pricing for as little as $6.99 per month. "Consumers will have lower prices with the combined company," he explained.

Cramer also debunked the notion that the Sirius-XM merger is similar to the blocked merger attempt between DirecTV (DTV) and Echostar (SATS).

"TV is not the same as radio," he said. Unlike the world of TV where satellite TV often competes with only a single cable operator, there will always be terrestrial radio to compete with satellite radio, he said.

Finally, Cramer took issue with the notion that XM and Sirius can survive just fine without the merger. He said he's worried about XM's balance sheet and noted that consumers will get a monopoly anyway if XM goes under.

He urged viewers to contact their members of Congress and demand that the merger get done.

Western Union's Rising Star

Cramer called Moneygram (MGI) "one of the worst companies I've ever seen."

He told viewers that when a company is in turmoil, investors should be running to its closest competitor. In this case, Cramer suggested that Western Union (WU) is now poised to aggressively take share from the ailing Moneygram.

According to Cramer, Moneygram's recently announced recapitalization plan is horrible for the company and its shareholders. That leaves Western Union with attractive opportunities as Moneygram restructures.

Even before its recent collapse, Western Union was already three times larger than Moneygram. Cramer says Western Union is in great financial shape and noted that "the outlook for wire transfers is bright, regardless of which political party takes control of the White House in November."

Western Union recently beat earnings estimates by a penny a share and gave good guidance for the rest of 2008. The company trades at just 17 times its current earnings, but trades at just over 12 times its long-term growth rate.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs