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Cramer's 'Mad Money' Recap: Upside Action in AIG, Commodity-Linked Stocks

Just a few years ago, AIG was a mess, taking a $182 billion life-line from the government. Yet today, the company is leaner, meaner and more simplified, focusing mainly on life, property and casualty, auto and mortgage insurance. These changes have paid off, said Cramer, as shares of AIG are up 37% so far this year.

Yet despite the run-up, Cramer said that shares of AIG are still cheap. How cheap? The company's book value equates to $58.71 a share, a full $27 a share higher than current levels. Cramer said AIG deserves to be trading at one time its book value and therefore should be trading 45% higher than where it does today.

The U.S. government still does own 63% of AIG, but Cramer said he's no longer worried about this fact, as the recent secondary offering showed that investors will not be hurt. AIG plans to buy back some $10 billion worth of stock this year and an additional $8 billion next year.

Cramer said AIG is a company with a plan and investors looking to buy into that plan should "go for it."

Executive Decision

In the first "Executive Decision" segment, Cramer once again sat down with Irwin Simon, chairman and CEO of Hain Celestial (HAIN), a stock that's up 29% year to date as the grind toward healthy eating continues. Shares of Hain are up 23% since Cramer last spoke to Simon on February 22.

Irwin reiterated that healthy eating is not a fad, with research just today saying that the best way to reduce cancer risk is to reduce obesity. He said in just about every category, Hain is growing. Soups were up 12%, he said, despite a warm winter. Baby foods continue to grow, despite a slumping birth rate. And Hain's yogurt business is up 60%, while competitors are struggling. "The consumer is catching on," Simon concluded.

Irwin dispelled the myth that only the rich can eat healthy. He said that the bulk of Hain's products are not sold at higher-end stores like Whole Foods (WFM); they're sold as mass retailers like Wal-Mart (WMT). Irwin said the move toward healthy eating is still in the early innings and it's clear that all consumers are making the move to healthier foods.

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