Cramer's 'Mad Money' Recap: Signs of Housing Turnaround (Final)

Winning Strategy

In the "Executive Decision" segment, Cramer sat down with David Wenner, president and CEO of B&G Foods (BGS), one of the few consumer foods companies that Cramer said are worth owning.

Wenner said that B&G is very comfortable with its dividend exposure due to the fact that the company always does acquisitions that are accretive to earnings. He said his company specializes in buying under-invested brands, like Mrs Dash, which has not seen any new products over the past three years. Wenner said that with brands like Mrs Dash, B&G can launch new products, expand distribution and grow.

When asked about commodity costs, Wenner explained that B&G does not have as much exposure as other food companies. He said that commodity costs rose 1.5% last year and will grow another 2% this year, but the company has already offset those costs with price increases. Wenner noted that for many of B&G's brands, like Cream of Wheat, there are loyal followings of customers, which make price increases less of a factor.

Also providing B&G with a tailwind is the company's aggressive move into the dollar store segment. Wenner said that B&G didn't necessarily notice the trend before the competition, but given the company's smaller size, it was able to move more quickly into the segment with much success.

Wenner also discussed how B&G does much of the research in-house. He also said the company uses economies of scale when buying its packaging, which also offsets rising costs in that area of its business.

Cramer said that B&G continues to be a winner for both consumers and shareholders. He continued his recommendation.

Lightning Round

Cramer was bullish on Panera Bread (PNRA), Chipotle Mexican Grill (CMG), Yum! Brands (YUM), Kinder Morgan Energy Partners (KMP) and Beckman Coulter (BEC).

Cramer was bearish on Bravo Brio Restaurant (BBRG), Fidelity National Financial (FNF), Frontier Communications (FTR), Strayer Education (STRA) and HollyFrontier (HFC).

Dividend Debate

In his "No Huddle Offense" segment, Cramer highlighted the differences between Apple (AAPL), an Action Alerts PLUS holding, and Berkshire Hathaway (BRKB), explaining why Apple should not pay a dividend, but Berkshire should.

Cramer said there's far too much chatter about Apple and what the company "should be doing" regarding a dividend or a stock split. Cramer said frankly "I don't care about a dividend," since Apple is a growth stock and is adding value for shareholders simply by continuing with what it's doing.

Berkshire, on the other hand, has little earnings momentum, said Cramer, and is more of a value stock than a growth stock at this point. Thus Cramer said disagrees with Buffett's decision to focus on the company's book value rather than paying its shareholders a dividend while they wait for growth to pick up once again.

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

To contact the writer of this article, click here: Scott Rutt.

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At the time of publication, Cramer was long Stanley Black & Decker, Kelloggs, Conoco-Phillips, Schlumberger, Apple.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com 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 TheStreet.com, 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 TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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