Cramer's 'Mad Money' Recap: Big Government Not Protecting the Little Guys

Chico's had lost its way with its customers, explained Cramer. That's why the company reshuffled its merchandise and took the rare step of raising prices in order to attract its core, older customers while shunning a younger demographic.

This strategy worked. Chico's reported a 21% pop in year over year revenue with a 9.6% increase in same store sales. Now that Chico's is profitable, the company is only returning to a growth strategy that is more in line with Wall Street's expectations.

"The proof is in the pudding," Cramer concluded. J.C. Penney needs to stop pandering to Wall Street and get to work on the almost impossible task of a retail turnaround.

In A Pickle? Here's How To Play Defense

Investors need to play defense with their portfolios, Cramer told viewers. That means high-quality domestic companies with no exposure to the trials and tribulations of Europe and a juicy dividend yield. One such company that fits the description is B&G Foods (BGS), purveyors of Ortega tacos, Cream of Wheat and B&G pickles.

Cramer said what makes B&G great is not its products per se but its business model. The company buys ailing brands from much larger companies and nurses them back to health for sizable profits. While many of B&G's acquisitions are number one or two in their categories, these brands simply don't even register at the bigger companies.

B&G may seem like a ho-hum investment, but slow and steady are exactly what investors should be seeking, said Cramer. The company has the unique talent of being able to reinvigorate brands, catering to dollar stores, discount chains and cost clubs by making exclusive products just for those markets.

In an environment where commodity costs are falling, Cramer said that B&G, with its excellent balance sheet and great gross margins, is in a terrific position to surprise Wall Street. The company last reported a one-cent-a-share earnings beat on a 19% rise in revenue. Shares trade at just 15 times earnings and the company has a 12% long-term growth rate.

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