Cramer's 'Mad Money' Recap: Market Dichotomy (Final)

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NEW YORK (TheStreet) -- "There's a dichotomy in the market of 2012," Jim Cramer told his "Mad Money" TV show viewers Tuesday.

He told investors to forget about the predictions that January's trading action determines how the markets will perform for the year and instead focus on what today's earnings releases told us.

Cramer explained that today's earnings were a perfect dichotomy of what's working and what's not. On the good side, there was Mattel (MAT), which reported revenues up 16% with good margins and boosted its dividend by 35%. Cramer said its no wonder this great company hit a new 52-week high and rallied 5% on this great news.

Also on the plus side, Limited Brands (LTD), whose brands like Victoria's Secret and Bath & Body Works helped this retailer raise its dividend by 25%.

Then there was the bad, said Cramer, and that came in the form of Exxon-Mobil (XOM). Even with impossibly high oil prices, this pitiful giant saw production fall by 8% and refining profits nose-dive by 63%. Cramer said Exxon did also boost its dividend, but with almost no growth and falling profits, the company offered little to impress investors.

Finally, Cramer said there was the ugly, with was undeniably Radio Shack (RSH). Cramer could hardly contain himself when conveying that Radio Shack management actually blamed a key supplier, Sprint (S), for what was a massive earnings shortfall that sent shares plummeting down 33%. Cramer called Radio Shack pathetic and said its shares deserved the beating it received.

In closing, Cramer said that these earnings show the dichotomy of the markets. He said great companies that reward shareholders are being rewarded by the markets, while those that cannot deliver growth, earnings, or even a valid reason for not hitting their targets are seeing their stock prices crushed.