Cramer's 'Mad Money' Recap: July 16

The final step is to emphasize natural gas. He said that the U.S. has discovered huge amounts of natural gas recently and with gas 50% cheaper than oil, it's the cleanest, safest and most abundant fuel alternative.

With just the stroke of a pen, Cramer said the government could make natural gas the fuel of choice, create jobs and spark the entire economy.

Back on Track

CSX(CSX Quote) and its incumbent CEO Michael Ward have been in a battle with hedge fund TCI over control of the company's board. Cramer said it now appears that TCI has the upper hand, and he's not happy with the outcome.

Despite the proxy fight, Cramer said he still likes the company's fundamentals, which are being driven by high demand, resulting in increased revenues in eight out of 10 of the company's markets.

CSX is a long-time favorite of Cramer. It is currently up 186% since it was first mentioned on March 22, 2005.

Ward returned to the show to talk about the quarter and the continuing battle for the company's board of directors.

Ward said business is strong at CSX, with earnings per share up 25% for the quarter and 75% of the company's key markets up on revenue. Ward said that housing does not take up as big a portion of the company's portfolio as it did previously.

Ward said the volume of coal shipments has not declined at CSX. He said export demand remains strong and domestic utilities will begin adding reserves of coal in the third quarter.

Regarding the battle with TCI, Ward said the hedge fund has indicated that if it is successful in replacing board members, it wants to work with existing management. Regardless of the outcome, Ward said he'll remain focused on creating shareholder value.

Cramer said he's sticking with Ward and CSX.

A Retail Hero

Cramer regularly takes the pulse of the American economy by talking to CEOs in consumer sensitive areas.

In this regard, he talked with Eric Wiseman, VF Corp's (VFC Quote) president and CEO.

Wiseman said the company raised both its revenue and earnings per share guidance yesterday. While the U.S. economy is spotty, VF remains strong because of its diversified portfolio of brands and its global reach, he said.

He highlighted several of the company's recent acquisitions as evidence of the company's successful strategy.

Cramer told viewers that VF Corp has the longest running string of earnings beats in retail. He called Wiseman a hero of retail.

Am I Diversified?

Cramer talked with callers about their portfolios. The first caller's portfolio included Yum! Brands (YUM Quote), Shaw Group (SGR Quote), Cummins (CMI Quote), Visa (V Quote) and Chesapeake (CHK Quote).

Cramer said he prefers MasterCard (MA Quote) over Visa, but called the portfolio what diversification is all about.

The second caller's top holdings included Denbury Resources (DNR Quote), Illinois Toolworks (ITW Quote), Kraft Foods (KFT Quote), Medco Health (MHS Quote) and ExxonMobil (XOM Quote).

Cramer advised selling Denbury in favor of a defense stock, but called this portfolio also diversified.

Sudden Death

Cramer was bullish on American Superconductor (AMSC Quote) and Suncor Energy (SU Quote).

He was bearish on Ambac Financial Group (ABK Quote).

Lightning Round

Cramer was bullish on Carnival Corp (CCL Quote), Gen Probe (GPRO Quote), Thompson Creek Metal (TC Quote), MDU Resources Group (MDU Quote), Yum! Brands (YUM Quote) and Western Gas Partners (WES Quote).

He was bearish on CVRD (RIO Quote), Domino's Pizza (DPZ Quote) and Gushan Energy (GU Quote).

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