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Cramer's 'Mad Money' Recap: A Tale of Two Markets

Nike (NKE): "I think Nike is good to go. I think they will reward patient people."

Atlas Pipeline Partners (APL): "I think they are money makers. Reinvest that yield. I like it."

TJX Companies (TJX): "TJX acts terrific. I think that company is doing well."

Universal Health Services (UHS): "It doesn't get much better than that. That company is well run."

Executive Decision

In the "Executive Decision" segment, Cramer sat down with Nick Schorsch, chairman of American Realty Capital Trust (ARCT), a real estate investment trust with 485 properties in 45 states, a 6.5% dividend yield and a 100% occupancy rate.

Schorsch started off by explaining his company's sale and leaseback business model, which provides its 100% occupancy. Rather than buying properties, developing them and then looking for tenants as other REITs do, American Realty Capital buys existing properties from banks, drugstores and other companies and then leases those properties back using long-term leases of at least 10 years.

Schorsch explained that the lease back arrangement allows companies like CVS Caremark (CVS) or Dollar General (DG) to free up their investments into their properties while at the same time offering his company durable income streams for years to come. Schorsch noted that American Realty Capital avoids properties that would be difficult to lease and the deal only with established corporate tenants, not franchisees.

So with so many properties spanning so many industries, tenants and geographies, how is the American economy faring? Schorsch said the economy is essentially flat, but corporations are stable and their earnings are beginning to pick up.

Cramer said that American Realty Capital is a terrific domestic story and another example of how stocks can vastly outperform U.S. Treasuries that yield next to nothing.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer reiterated that he remains a huge fan of stocks with big dividends, but also cautioned that not all big dividends are created equal.

Case in point: supermarket Supervalu (SVU - Get Report), a stock that going into Thursday yielded 6.5% with repeated assurances from company management that its dividend remained safe. That was until management eliminated its dividend altogether, sending Supervalu shares into free-fall to $2.69 a share.
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