Cramer's 'Mad Money' Recap: A Rally Based on Facts

Wal-Mart (WMT): "The last quarter wasn't that good. I want to wait to re-test $71 before pulling the trigger."

Executive Decision

In the "Executive Decision" segment, Cramer sat down with Nick Schorsch, chairman of American Realty Capital Trust (ARCT), a stock that's seen a 14% gain since Cramer last spoke with Schorsch on July 12, but also one that's come under fire after the company announced it was selling itself to Realty Income (O).

Schorsch said the merger was a perfect example of one plus one equaling three, as Realty Income is a great company with a terrific balance sheet. He said the combined company will be able to boost dividends by 7% and Realty Income has a track record of raising their dividend 67 times in a row.

Additionally, Schorsch said American Realty shareholders get to tap into Realty Income's higher multiple, making the deal accretive for everyone. The combined company will be more stable, he said, as well as having a much better cost of capital for the future.

Cramer said that normally he advises shareholders to sell on a takeover, but in this case he's advising investors to stick with the company and get shares in the new entity.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer sounded off against Alcoa (AA) and Bank of America (BAC), the two biggest laggards over the past two years.

Cramer said while he could argue that both companies are better now than they were two years ago, it simply doesn't matter. Alcoa, he said, is suffering from an aluminum glut that has no end in sight while Bank of America is competing against Wells Fargo (WFC) and losing at every turn.

With no catalysts in sight for either company, Cramer said he prefers Wells Fargo and Vale (VALE), both of which are Action Alerts PLUS holdings.

And in Closing...

In his closing comments, Cramer said earnings at Palo Alto Networks (PANW) were disappointing, but he liked the quarter at dollar store chain Five Below (FIVE).

--Written by Scott Rutt in Washington, D.C.

To email Scott about this article, click here: Scott Rutt

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To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, JPM, VALE and WFC.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC Universal or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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