Cramer's 'Mad Money' Recap for July 15

Cramer said the poor performance of the Wind-ex stocks has nothing to do with the wind power business, but rather with the industrial components of all of the companies.

He reminded viewers that as wind power accounts for larger portions of their earnings, the other divisions will account for less. He views the current weakness in the stocks as a valid pullback and a buying opportunity.

More Wind Power

While most stocks levered to wind were getting hit again today, Cramer said he's still a buyer of Quanta Services (PWR Quote), a stock which he's adding to the "Mad Money" Wind-Ex.

Quanta, a stock owned by Jim's charitable trust, Action Alerts PLUS, was last mentioned on Nov. 15, 2007 at $27.28, and is up 6.3% since that recommendation.

He said that Quanta, which builds and maintains energy infrastructure, is poised to take advantage of the coming boom in wind power.

According to Cramer, the U.S. will invest $1.5 trillion on energy infrastructure between now and 2030, and Quanta will be a beneficiary. The proposed initiative currently in front of the Texas Utility Commission alone could provide for $3 billion to $9 billion in new infrastructure investments.

Cramer said electricity, which accounts for only 60% of Quanta's business, is only part of its operations. He said that 17% of the company's revenue comes from natural gas services and 17% comes from telecom and cable services, which is in the midst of a major upgrade cycle.

Quanta, which currently has $5.2 billion of work in its backlog, sports only a $5 billion marketcap. Cramer said whenever a company's backlog meets or exceeds its total marketcap, it's worth a look. He said he'd be a buyer under $29 a share.

It's Already Illegal

"Today we heard something good from the SEC but also something misguided," Cramer told viewers.

He noted earlier today Chris Cox, chairman of the Securities and Exchange Commission (SEC), said he's banning naked shorting, the practice of shorting a stock without first borrowing shares from a broker, for shares of Freddie Mac (FRE Quote) and Fannie Mae (FNM Quote).

But Cramer said the problem with Cox's statement is that naked shorting is already illegal. The SEC, he noted, just doesn't enforce their own rules. Cramer, a long time opponent of hedge funds pummeling certain stocks through excessive shorting, said the agency needs to stop misleading the public and instead start enforcing the existing rules.

Cramer said the SEC has under regulated and failed to prosecute their own laws. He urged Cox and others at the SEC to start taking action to protect companies and small investors.

A Bearish Overreaction

Shares of Eaton (ETN Quote), a stock he's championed in recent weeks, got pounded today after it lowered its annual guidance by 20 cents.

He talked with Sandy Cutler, Eaton's chairman, president and CEO, to find out what happened.

Cutler defended Eaton's performance, saying it delivered record revenues and profits in the recent quarter. He said he lowered the company's guidance in recognition of a potential global economic slowdown.

He said market overreacted. He said he still sees overall strength in Eaton's global electrical and hydraulics business. In his opinion, he said it was prudent to mention the slowing growth in Europe and elsewhere.

Cramer reminded viewers that his "new-tech" stocks are performing 5.3% better than the overall S&P500. And he said he's standing behind Eaton and agreed the declines today were just an over-reaction.

Lightning Round

Cramer was bullish on Mexican Economic Development (FMX Quote), Transocean (RIG Quote) and Apache (APA Quote).

He was bearish on American Apparel (APP Quote) and AerCap Holdings (AER Quote).

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