Cramer's 'Mad Money' Recap: Housing Comeback

One of Alkermes' most promising treatments is for alcoholism. Pops noted that unlike drug addictions, which are often treated with medications, alcoholism is often treated with counseling alone, which makes for an uphill battle to educate both patients and doctors that alternatives are available. Alkermes also has a promising drug in phase III testing for schizophrenia.

Cramer said he continues to like the innovation and growth at Alkermes, even if the company remains a speculative play, as it still has no earnings.

Hospitality Index

"Individuals can be better stock pickers than the pros," Cramer told viewers, as he revisited the Hospitality Index, a group of stocks created by restauranteur Danny Meyer in 2009. During the heart of the recession, Meyer theorized that companies focused on delivering outstanding customer service would outperform those that aren't. The Hospitality Index consisted of 17 stocks including Whole Foods (WFM), Chipotle Mexican Grill (CMG), Apple (AAPL), Costco (COST) and Amazon.com (AMZN).

Since its introduction in 2009, the S&P 500 has delivered a 65% return while the Hospitality Index returned a stellar 257% return with only one stock, DreamWorks Animation (DWA), posting a loss.

Cramer said it's easy to see why a $5,000 investment in these companies is worth $48,000 today, as all of them deliver a customer experience that's world class. Whole Foods posted the highest return among the 17 stocks, with Chipotle Mexican Grill and Apple rounding out the top three.

Cramer said the same things that have made these companies a success over the past three years still hold true today and are proof positive that someone with no knowledge of stocks can pick better names than professional analysts.

Lightning Round

Here's what Cramer had to say about the stocks that callers offered up during the "Lightning Round":

Hewlett-Packard (HPQ): "Wow. I don't like that stock at all. That stock can go lower, much lower."

Pan American Silver (PAAS): "It's the best house in a shaky neighborhood. I don't want to own any miners, they're too dangerous."

Hercules Offshore (HERO): "This is a dicey stock. If you consider it a speculative stock, I'll bless it as a long-term bet on oil."

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