Cramer's 'Mad Money' Recap: Stay with New Tech

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"When stocks are down big, stick with the long-term themes that work," Jim Cramer told viewers of his "Mad Money" TV show Tuesday.

He told investors to stick with the many long-term theses he's been highlighting over the past few weeks: including agriculture, oil and gas, infrastructure, minerals, and aerospace.

Cramer explained that while all of these sectors do better as oil prices head higher, it's the "new tech" companies, companies that are solving the world's problems, that hold the most promise. He referenced the newly published "Top 10 Needs of Humanity" list to future illustrate his point.

According to the list, humanity's top 10 needs over the next 50 years include energy, food, water, the environment, poverty, fighting terrorism, disease, education, democracy and population. "These are long-term issues that aren't going away," said Cramer. "You'll notice how videos games and cell phones and sales management software [aren't] on this list," he continued.

Cramer continued to recommend the many "new-tech" names he's been highlighting, including names like Eaton (ETN Quote - Cramer on ETN - Stock Picks), Parker-Hannifin (PH Quote - Cramer on PH - Stock Picks), Emerson (EMR Quote - Cramer on EMR - Stock Picks) and First Solar (FSLR Quote - Cramer on FSLR - Stock Picks). He gave special mention to Parker-Hannifin, which he said is not only helping to solve the world's problems, but also supports its shareholders with a solid dividend.

"These are the themes that let you sleep at night without nightmares," Cramer told viewers. "New tech," he said, is the place to be.

Cramer Interviews Herbalife CEO

Gas Up on Navistar

Cramer said when it comes to fuel-efficient trucks, Navistar International (NAVZ Quote - Cramer on NAVZ - Stock Picks) is the market leader, just behind his other favorite engine play, Cummins (CMI Quote - Cramer on CMI - Stock Picks). According to Cramer, Navistar is a great company with a catalyst that's poised to take its stock higher.

On a fundamental level, Cramer said he likes Navistar for its manufacturing of fuel-efficient school buses and trucks. The company has new hybrid diesel engines that tout fuel savings of 9%-13% over traditional engines. The company also has growing military division which the company says could see up to $2 billion in sales.

But Cramer said the real catalyst for Navistar is the company's expected relisting on the New York Stock Exchange. Navistar was delisted from the exchange back in 2005 for accounting issues, but Cramer said the company's accounting problems are now behind them. He likened Navistar to Terex (TEX Quote - Cramer on TEX - Stock Picks), which saw shares double after recent accounting issues were resolved.

Cramer first mentioned Navistar back on Sept. 25, 2007 at $60. Since then, the stock has risen 14%. Cramer said when the company files the last of its financials and gets relisted on the exchange, the big institutional money will return, taking the stock higher. The company currently trades at just 7.7 times its forward earnings, but Cramer predicts Navistar could fetch an 11.6 multiple, taking it to $104 for a 51% gain.

Herbalife Chief Speaks

Cramer again welcomed Michael Johnson, chairman and CEO of Herbalife (HLF Quote - Cramer on HLF - Stock Picks), to the show to discuss the company's outlook amid the continued controversy surrounding it.

Cramer first recommended Herbalife back on May 15, 2007 at $39.39. Since then, shares have been "a complete roller-coaster," according to Cramer. The company has been under almost constant attack by critics of its products and marketing methods.

Yet, said Cramer, Herbalife continues to deliver on its earnings quarter after quarter, beating its estimates.

Johnson defended his company's products as completely safe, saying that Herbalife continues to test and retest its products and refine its supply chain to bring the best possible products to market. He called concerns over lead in their products a "non-issue." He defended other allegations by saying that no Herbalife products have ever been recalled by any country at any time.

When asked about possibly taking the company private to avoid the onslaught of allegations, Johnson said both he and Herbalife's board talk about options often, but are committed to rewarding their shareholders with the best possible outcome.

Cramer commended Johnson for discussing his company's problems in a public forum.

Mad Mail

In the "Mad Mail" viewer feedback segment, Cramer told a viewer that he still believes in NYSE Euronext (NYX Quote - Cramer on NYX - Stock Picks), but wouldn't pull the trigger until the stock pulls back.

Cramer told a second viewer that he recommends Corning (GLW Quote - Cramer on GLW - Stock Picks) as a play on high-definition television.

Sudden Death

In Sudden Death, Cramer was bullish on Energy Conversion Devices (ENER Quote - Cramer on ENER - Stock Picks).

Cramer was bearish on Home Depot (HD Quote - Cramer on HD - Stock Picks) and Zoltek (ZOLT Quote - Cramer on ZOLT - Stock Picks).

Lightning Round

In the Lightning Round, Cramer was bullish on World Wrestling Entertainment (WWE Quote - Cramer on WWE - Stock Picks), Waste Management (WMI Quote - Cramer on WMI - Stock Picks), IDEXX Laboratories (IDXX Quote - Cramer on IDXX - Stock Picks), Marathon Oil (MRO Quote - Cramer on MRO - Stock Picks), Coca-Cola (KO Quote - Cramer on KO - Stock Picks), PPL Corp (PPL Quote - Cramer on PPL - Stock Picks) and Exelon (EXC Quote - Cramer on EXC - Stock Picks).

Cramer was bearish on Tesoro (TSO Quote - Cramer on TSO - Stock Picks) and Coca-Cola Enterprises (CCE Quote - Cramer on CCE - Stock Picks).

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Jim Cramer writes about all the stock trades in his charitable trust for TheStreet.com in Action Alerts Plus. Recent stocks he's traded in this account include Schering-Plough(SPG Quote - Cramer on SPG - Stock Picks), Yamana Gold(AUY Quote - Cramer on AUY - Stock Picks) and Abbott Laboratories(ABT Quote - Cramer on ABT - Stock Picks).

Want more Cramer? Check out Jim's rules and commandments for investing by clicking here.

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