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TheStreet Open House

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

Lightning Round

P/> Here's what Cramer had to say about caller's stocks during the "Lightning Round":

MetroPCS Communications (PCS): "I think it's time to move on. I'd rather own some Sprint Nextel (S) bonds."

Chimera Investment (CIM): "I want you to own Annaly Capital (NLY). I feel much better about that."

Realty Income (O): "I think that's a great domestic call with great growth prospects."

Office Depot (ODP): "I think you need to stay away. It's not even a lottery ticket. Home Depot (HD) is the depot that you want."

Brocade Communications (BRCD): "I still don't like the stock, or the segment either."

Virgin Media (VMED): "Why do you need that craziness? I like Verizon (VZ) because I like to sleep at night."

Executive Decision

In the "Executive Decision" segment, Cramer sat down with Gregg Engles, chairman and CEO of Dean Foods (DF), one of the best-performing stocks in the Standard & Poor's 500 over the past month. Shares of Dean are up 9.3% since Cramer last recommended it last Monday.

Engles said all of the challenges facing his company over the past two years have finally reversed themselves, with milk prices now falling along with resin and fuel costs. He said Dean is also seeing top-line growth thanks to its expansion into plant-based products.

Engles pointed to Dean's Silk brand of soy and other plant-based products as being a real driver for the company. He said while regular milk is a commodity, soy milk is a value-added product that's lower in calories and healthier as well. Plant-based products have accounted for just 15% of profits for Dean just a few years ago, but in the company's most recent quarter they accounted for 31%.

When asked about the overall economic environment, Engles noted that during the recession many supermarkets heavily discounted gallons of milk to drive foot traffic, something that crimped demand. However, today, he noted, Dean is seeing robust demand at healthier margins.

Finally, when asked whether it makes sense to spin off the company's Dannon yogurt brand along with a few other products, Engles said his company does realize the value in separating its low-growth, low-margin business from its higher-growth, higher-margin businesses. He fell short of suggesting that Dean is actively looking into a breakup.

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