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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cramer's 'Mad Money' Recap: Day of Atonement

Cramer said he slammed Procter & Gamble (PG) CEO Bob McDonald for a string of disappointments, even going as far as adding him to his "Wall of Shame" list of the worst corporate CEOs.

But that was before Cramer did his homework and learned of McDonald's $10 billion cost-cutting initiatives, a renewed sense of innovation with dozens of new products and a huge bet on the Olympics that paid off big. Shares of P&G are unstoppable now, said Cramer, which is why he owes McDonald an apology.

However, when it comes to Energy Transfer Partners (ETP) CEO Kelcy Warren, Cramer said he gave this Action Alerts PLUS holding way too much of the benefit of the doubt. He said that even this stock's 8% yield can't save it from Warren's lack of discipline, which has led the company to countless acquisitions that have buried existing shareholders and piled on the debt.

Cramer said he's not willing to throw in the towel quite yet on Energy Transfer, as the company has yet to close its big acquisition of Sunoco (SUN). He said the stock will likely pop once that deal closes. If it doesn't, Warren will find his face replacing McDonald's on the Wall of Shame.

Be Patient

Cramer's next lesson for investors: Don't be impatient and give up just because your thesis hasn't happened yet. He said that when oil prices bottomed, he flagged offshore driller Ensco (ESV) as being the biggest beneficiary. He even bought some for Action Alerts PLUS. That call proved initially to be right as shares rose 10 points over the following weeks.

But then oil prices sank, enough for investors to get worried. That sent shares back to the low $40s, a full round trip up and back, much to Cramer's dismay. So when shares returned to his breakeven, Cramer said he couldn't take it and sold.

In the days that followed, Ensco got added to the S&P 500 index, sending shares up $3, after which they only continued to rise, eventually ending up a full $10 higher than where Cramer sold.

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 16,945.73 -138.07 -0.81%
S&P 500 1,978.31 -9.67 -0.49%
NASDAQ 4,447.9820 -24.1260 -0.54%

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