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
TheStreet Open House

Cramer's 'Mad Money' Recap: Stocks Too Cheap (Final)

Stock quotes in this article: HAIN, YHOO, BIDU, AOL, BGCP, QRE

Search Jim Cramer's Mad Money trading recommendations using our exclusive Mad Money Stock Screener and watch Jim Cramer's Mad Money Post Game video exclusively on TheStreet.com.


NEW YORK ( TheStreet) -- "This market is too cheap," Jim Cramer announced to the viewers of his "Mad Money" TV show Monday, as he told them that companies simply are worth more than their stocks are selling for.

He said the "wisdom" of the crowd has chronically mis-valued stocks, and the evidence is showing up all around us.

No. 1. Takeovers. Cramer said the uptick in mergers and acquisitions, if not about consolidation in an industry, has been about companies being undervalued. He said even after big moves in the stock prices, companies are still confident they can pay big premiums and make money.

No. 2. Sellers Remorse. Cramer said after F5 Networks (FFIV) reported a "disappointing" quarter, its stock dipped 26%. But a week later, the sellers have realized their mistake, sending the stock up some 20 points.

No. 3. Downgrades Don't Stick. Last week Chipotle Mexican Grill (CMG) received a downgrade by an analyst, but the stock barely flinched, and has been rising ever since.

No. 4. Adding Value By Splitting Up. Cramer said stocks like Chesapeake Energy (CHK) have been adding value by selling assets, which is why he still thinks Chesapeake's parts are worth twice that of the whole company.

No. 5. Market Forgetfulness. Remember a few weeks ago when Apple (AAPL), a stock which Cramer owns for his charitable trust, Action Alerts PLUS , was down big on Steve Jobs' medical leave? Today Apple took out its 52-week high.

6. Revaluations. Cramer said on the news of a single blowout quarter, Acme Packet (APKT) has risen 27%, as the market revalues that company against much higher earnings.

For all these reasons, Cramer said stocks remain far too cheap, which is why he's remains a bull.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
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 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from Bankrate.com

  • 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