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Cramer's 'Mad Money' Recap: Expectations Jinxing Apple (Final)

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NEW YORK (TheStreet) -- Jim Cramer tells "Mad Money" viewers Monday of two $700 stocks passing in the night: Google (GOOG) going up and Apple (AAPL), a stock he owns for his charitable trust, Action Alerts PLUS, going down.

The expectations for Apple have gone bonkers, Cramer said. After its stock run-up, it's only natural for the stock to come back a bit. People are selling on the stories Cramer says are not true.

Meanwhile, Google stock is on a stealth rally. It's an easier buy, he said. Google is a cheaper, better stock. As for Apple's maps in its new phone, Cramer likened it to Microsoft (MSFT) stifling other products that were better by bundling its software into Windows.

Google is a machine, not a man, and not beholding to one person, Cramer said. Whereas when Steve Jobs was alive, people bought based on that.

Upon Further Review

In his "Upon Further Review" segment, Cramer says that Kellogg (K) is stealing General Mills' (GIS) breakfast. Stealing market share, that is, from GM and Conagra Foods (CAG).

Conagra says commodity costs can be moderated and General Mills says it is losing market share. Cramer sees that as a good sign for Kellogg.

Despite Kellogg being a laggard, it has the catch-up potential to GM and Conagra. Cramer says he sees all the ingredients for an upside surprise when Kellogg reports Nov. 1. The new CEO has been working on pricing and new products to turn the company around, and Cramer says it seems to be working.

The General's pain could be Kellogg's gain, he said. The time to buy Kellogg has arrived.

Executive Decision

In the "Executive Decision" segment, Cramer looked at the online real estate market with Zillow (Z) CEO Spencer Rascoff.

Cramer wondered whether Zillow's stock is too hot to handle. It's up 98% in a year. The online real estate site's stock momentum is holding up, he said.

Rascoff said his company has about 1% of realtors' annual advertising budget and his company's investors see the size of the market potential.

Zillow's revenue rose 75% last year, Rascoff said. Real estate agents collect about $60 billion in commissions and they turn around and spend $6 billion to $10 billion a year on advertising. He's optimistic that ad dollars will follow eyeballs to the most popular online real estate site.

Zillow is clearly the best story in the group, Cramer said, urging viewers to listen to the company's conference call so they don't come back later and say, "Jim, why didn't you tell me this?"

In the second "Executive Decision" segment, Cramer looked at retail through the eyes of the Ascena Retail Group (ASNA), or the artist formerly known as Dress Barn.

CEO David Jaffe said the company bought five brands that focus on their niche customer. The company allows the brands to focus on target customers and support them through their shared service group, such as common distribution centers, buyers and other economies.

Cramer asks about Jaffe's conference call comment about results being "choppy."

The CEO says "choppy" was referring to the consumer, not the business. The consumer still feels a little less ebullient than in the past. The industry has seen strong weeks and some other weeks that make them scratch their heads.

Ascena has been a huge winner for us, Cramer said, and yet remains incredibly inexpensive versus the rest of the group.

Lightning Round

Here's what Cramer had to say about callers' stocks during the "Lightning Round."

Tesla Motors (TSLA) is too dicey.

Bank of America (BAC) at about $9, is worth a buy.

Lorillard (LO) is fine, but he prefers Philip Morris (PM) in that group.

McDonalds (MCD), a stock which he owns for his charitable trust, Action Alerts PLUS, can still go higher. Petroquest Energy (PQ) is highly speculative. If you think oil is going to go up 20% to 30%, you buy it; if you don't think it is, you sell it.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer said coal is the key to transports. Transports won't be coming back real soon. However, the market rally isn't built on transports. It's been built on consumer package goods, health care, financials, telcos, the Internet and Apple. Transports are a subset, so don't worry so much.

In Closing

In his closing comments, Cramer said the weakness in Caterpillar (CAT) is buyable, not sellable.

--Written by Anthony Buccino in New York for The Street.

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

Stock quotes in this article: AAPL, GOOG, MSFT, K, GIS, CAG, Z, ASNA, TSLA, BAC, LO, PM, MCD, PQ 
At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL.

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."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

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