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Cramer's 'Mad Money' Recap: Bears Will Return (Final)

Working on the Right Mix

In the "Executive Decision" segment, Cramer spoke with Kieran Gallahue, chairman and CEO of CareFusion (CFN), a little-known health care company that delivered a two-cent-a-share earnings beat on a 3.7% increase in revenues. CareFusion currently has $1.2 billion in cash and trades at just 12.4 times earnings with a 13% long-term growth rate.

Gallahue explained that CareFusion has market-leading brands in the infusion and medical dispensing markets, but since the company was a spin-off of Cardinal Health (CAH), the hard part is getting the CareFusion company name to become recognized.

Gallahue went on further to explain that CareFusion is "where you want to be in health care," by having products that not only save on costs but also improve the efficiency and safety of hospital operations. He said since the company's spin-off, it has spun off two businesses and acquired two others as it attempts to rebalance its portfolio of products.

Gallahue said over the next few years, CareFusion will continue to simplify its business, eliminating the parts that don't add value and reinvesting in the areas that matter most.

Cramer said he likes the CareFusion story and the fact that the company is a virtual unknown despite its industry leading products and brands. He said CareFusion is worth a second look.

Lightning Round

Cramer was bullish on Caterpillar (CAT - Get Report), Public Storage (PSA - Get Report), Dover Corp (DOV - Get Report), BJ's Restaurants (BJRI - Get Report), Ariad Pharmaceuticals (ARIA - Get Report) and Starbucks (SBUX - Get Report).

Cramer was bearish on Travelzoo (TZOO).

Closing Comments

In his "No Huddle Offense" segment, Cramer told viewers that they shouldn't take their cues from the oil futures market, which has been in rapid decline as of late.

Cramer said the Transocean's (RIG) $1.43 billion bid for the Norweigan Aker Drilling proves that there's still a need for new deepwater rigs to keep drilling for oil. He said that the futures declines are nothing more than hedge funds liquidating their portfolios, and has nothing to do with tepid global demand for more oil.

Cramer once again noted that a vital commodity such as oil shouldn't even be allowed to trade on margin for precisely this reason.

--Written by Scott Rutt in Washington, D.C.

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To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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For more of Cramer's insights during the Lightning Round, click here .
At the time of publication, Cramer was long Oracle.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.
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ARIA $7.18 0.00%
BJRI $44.60 0.00%
CAT $77.72 0.00%
DOV $65.70 0.00%
ORCL $39.86 0.00%


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