This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Cramer's 'Mad Money' Recap: Don't Panic, Look for Discounted Stocks

Looking into each of the parts separately, Cramer said there's lots to like. The company's publishing arm is set to benefit from new textbook standards coming in 2014, plus McGraw-Hill also has a partnership with Apple (AAPL), a stock Cramer owns for his charitable trust, Action Alerts PLUS , to publish digital books on the iPad.

On the ratings side of the business, McGraw-Hill is also set to prosper because countless companies will be taking advantage of record low interest rates to issue new debt, all of which will need a Standard & Poor's credit rating.

Cramer said the sum of McGraw-Hill's parts could be worth 34% more than where the combined shares trade today, plus the company also has an aggressive stock-buyback program in place that's removing 12% of the total float in the interim.

Who's Right on Wynn?

When Wall Street analysts fight, investors win. Those were Cramer's thoughts regarding Wynn Resorts (WYNN), the casino operator that received a Goldman Sachs (GS) upgrade on Tuesday, the day before a J.P. Morgan Chase (JPM) price target cut.

Goldman likes Wynn's prospects in the longer term. With shares off 40% from their highs, the firm felt that most of the negatives are already baked into Wynn's stock. Additionally, the Goldman analyst cited positives for the company such as its new property under construction in the hottest portion of China's Macau province, as well as its limited competition in the region and its 2% dividend yield.

J.P. Morgan, however, trimmed its price target for Wynn from $160 a share to just $134 citing a steady decline in high rollers, who account for nearly 40% of the company's earnings. Despite China's economy still being in flux, J.P. Morgan felt the high-roller trend could continue.

Cramer said he has confidence in Wynn's management and is intrigued by its valuation of just 14 times earnings with a 14% growth rate. He called the company's long-term prospects fabulous. However, in this turbulent market, Cramer concluded that Wynn is the right stock but at the wrong time.

Cramer said there's no reason to own Wynn now with its new casino still years away. He said it's better to wait for additional clarity on both the company's business and the Chinese economy overall.

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs