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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cramer's 'Mad Money' Recap: No Stopping Apple (Final)

Big Dividend Companies

"In this market, you need companies that will pay you to wait," Cramer told viewers, as he began a week-long series highlighting companies with big dividends as well as plans for continued growth. He started with paper giant International Paper (IP), which currently yields 3.85%.

Cramer said International Paper is being run better than ever. With new pricing controls and supply and demand in balance, the company has more control over inventory, and thereby pricing, than ever before, he said. According to Cramer, even in this miserable downturn, International Paper has been able to shine.

The company also has a great track record of acquisitions, as noted by the company's proposed $3.2 billion bid for Temple-Inland (TIN), a deal that is expected to close in early 2012. Cramer said that the company expects $300 million in synergies between the combined companies, but those estimates are likely far too low.

After many years of being more "domestic paper," Cramer said that International Paper now has a great international business, with growing assets in Russia poised to service all of China's growing paper needs. Cramer said that International Paper has a lot of room still to go in its international efforts.

International Paper last reported a 12-cent-a-share earnings beat, a feat Cramer said will likely be repeated when the company reports in October. Shares of the company trade at just 8.4 times earnings and Cramer said now is the perfect time to begin building a position, buying on any weakness.

Tech Value Play

Kicking off a new series entitled the "Time For Tech," featuring tech companies poised for breakouts to the upside after a horrible summer season, Cramer highlighted Juniper Networks (JNPR), another Action Alerts PLUS holding.

Cramer explained that Juniper is now off 55% from its March highs after posting an utterly horrible second quarter earlier in the year. He said the stock, now flirting with its 52-week lows, will be hard pressed to head much lower and it's almost impossible for the company to really disappoint amongst drastically lowered estimates.

Cramer liked the fact that just about everyone has lost faith in this network equipment provider, especially given that the back half of the year is usually the best time for corporate and government IT spending. He said Juniper still has a small market share, but a strong line of new products ahead of it, so it should be easy for the company to once again begin taking market share.

But mainly, Cramer said Juniper is a value play, with shares trading at rock bottom prices. Juniper currently has $3.2 billion in cash on its books, the equivalent of $6 a share. That leaves shares trading at just 10 times earnings, despite the company's 16.9% growth rate and 20 times historical average.

Cramer said Juniper is likely to also report a weak third quarter, but that lackluster performance is already baked into its share price. He said that not much needs to go right for Juniper and even if the company reports inline numbers, the stock could rebound. Cramer said he sees three points of downside versus 10 points of upside.

2 of 3

Select the service that is right for you!

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 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from

  • 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