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: Digging Deeper (Final)

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

NEW YORK ( TheStreet) -- "I'm tossing out the red flag," Jim Cramer told his "Mad Money" TV show viewers on Wednesday.

He said that too many investors aren't doing their homework and are relying on the headlines alone, and that's why the markets have been so wrong about so many corporate earnings this quarter.

Cramer said the markets are still dominated by news from Europe, but that doesn't exempt investors from doing the homework, listening to conference calls and finding out what's really going on with a company's earnings. Skip this said, he said, and you're sure to lose money.

Consider Johnson & Johnson (JNJ), which reported $1.24 per share in earnings versus estimates of $1.21. A solid beat, right? Cramer said absolutely not. Turns out Johnson & Johnson only gained from one-time charges and divestitures. Earnings were pitiful. Cramer continues to like private label drug maker Perrigo (PRGO).

A similar story with Travelers (TRV), which reported only 79 cents a share when the markets were looking for 83 cents. Did the stock plummet lower? Not at all. Cramer said earnings were light, but in the conference call the company revealed that it's writing new policies like crazy and pushed through a price increase, two things that will benefit the company for years to come.

Then there's Coca-Cola (KO), a stock which Cramer owns for his charitable trust, Action Alerts PLUS . Coke seemingly disappointed with its earnings, but the company is seeing North American sales picking up and Coke Zero is growing like a weed.

Cramer said this is a most confusing earnings season and investors must remain disciplined and informed. Headlines alone are not enough. Skip the homework, he said, and you'll miss how this might be the last bad quarter for Goldman Sachs (GS), which would make now a great time to start a position.

1 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 17,131.97 +100.83 0.59%
S&P 500 1,998.98 +14.85 0.75%
NASDAQ 4,552.7590 +33.8570 0.75%

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