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

Stocks in this article: HAIN YHOO BIDU AOL BGCP QRE

Tasty Healthy Foods

In the "Executive Decision" segment, Cramer sat down with Irvin Simon, chairman, president and CEO of Hain Celestial Group (HAIN), a company making healthy foods that taste great. Hain shares are up 61% since Cramer first got behind the stock last April 6.

Simon said Hain has done a great job in reinventing its Celestial Tea brand, and has introduced a host of new teas and has a lot more distribution than it ever had before. In other areas, like yogurts, Hain is also making strides to offer good nutrition that tastes good.

Among the bright spots for Hain are schools, which Simon said are calling on a weekly basis to replace their traditionally fatty snacks with healthier alternatives. China is also growing for Hain, with the company's baby food now in 110 cities in China and commanding a 10% market share in Hong Kong.

Simon also noted the changing food guidelines, which not only require new food labels, but also overall are pushing for more grains and healthier foods. Even the food pyramid that we all grew up with has changed, said Simon, and Hain is there with the foods we all should be eating.

Cramer said Hain is still a great investing opportunity and could double from current levels.

Multiples No Concern

Sometimes if you wait, you miss it, Cramer told viewers. And that's certainly the case with yoga apparel maker Lululemon (LULU). Cramer said while investors may worry that the company's 42 times earnings multiple is too high, the stock continues to rocket still higher.

Cramer first got behind Lulu in September, and since then shares are up 81%. He again recommended the stock in December, and shares are up 15% in just the last two months.

When analyzing a stock like Lulu, Cramer said investors need to ignore the traditional price earnings multiple and instead look at the company's addressable market. How big can this company grow? In the case of Lulu, a lot. Cramer said this company is still in its infancy, with only 134 stores across the U.S. But Lulu is growing at a rate of 29%.

Cramer said with a $4 billion market cap, Lulu is still just one tenth the size of Nike (NIKE), yet Lulu is "shaping up" to become Nike for women. He said if investors wait, they're going to miss it.

Cramer said Lulu has everything he wants in a growth stock. Great earnings, solid management, and products that could easily expand from their current Yoga focus into running and other sports and leisure applications.

"Don't let the multiple scare you," said Cramer, who likened Lulu to Coach's (COH) 81 multiple in 2001. Over the next 10 years, shares of Coach rose 15% a year on average.

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