Cramer's 'Mad Money' Recap: Bears Blinded by Negativity (Final)

Building Strong Brands

In the "Executive Decision" segment, Cramer spoke with Martin Franklin, chairman and CEO of Jarden Corp (JAH Quote), purveyors of the Sunbeam, Oster, Rival and Mr. Coffee appliance brands among dozens of others. The stock of Jarden is up 129% for the year.

Franklin said the strategy at Jarden hasn't changed in the eight years he's been at the helm. He said the company is building a portfolio of niche brands that dominate their markets with strong brand equity.

When asked about the company's future plans, Franklin said Jarden is looking to expand its portfolio of brands to include products for both juvenile and the over-55 markets, as well as expand internationally. He said now that the company's sales are topping $5.2 billion annually, Jarden is looking much more strategically than it has previously.

Finally, when asked about the company's dividend and why Jarden doesn't use that cash for acquisitions, Franklin said that 80% of the consumer stocks in the S&P 500 pay dividends and Jarden wants to be among that list. He said the company now generates enough cash from operations to fund its growth needs.

Cancer Drug Plays

Cramer kicked off his self-proclaimed "cancer research week" by recommending two defensive drug stocks that he said can weather even the toughest of markets.

He said that both Pfizer (PFE Quote) and Bristol-Myers Squibb (BMY Quote), a stock which he owns for his charitable trust, Action Alerts PLUS, are steady pharmaceutical stocks with great oncology divisions.

Cramer said Bristol-Myers remains his favorite. The company reported strong third-quarter sales with 16% earnings growth and has a 5.7% dividend yield. He said while the company will be hurt by its blockbuster drug, Plavix, coming off patent in 2012, Bristol-Myers is taking steps to diversify itself and expand its pipeline to cover the shortfall.

Bristol-Myers' main cancer drug, Erbitux, is used to treat colorectal cancer. The company also makes Sprycel to treat leukemia and is working on drugs for breast cancer and other cancers. Bristol-Myers has made seven acquisitions since 2007, all in efforts to diversify its drug portfolio.

Cramer's second recommendation, Pfizer, comes as a surprise, as Cramer's hated the company since 1998. However, he said with the recent acquisition of Wyeth, Pfizer is a "whole new drug company."

Like Bristol-Myers, Pfizer is also set to lose a major drug to patent expiration. The company's drug Lipitor is set to lose patent protection in late 2011. When it comes to cancer drugs, company executives have said "we've never been in a better position."

Cramer said what makes Pfizer attractive is that many of its drugs can be used for "multiple indications," or to treat multiple forms of cancer, which make them more desirable. He said these multiple indications will help bump oncology drug from only 5% of the company's sales to a number much higher.

Cramer said with both stocks down with the markets, this is a good entry point for investors.