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Cramer's 'Mad Money' Recap: Don't Fight the Fed

In the losing column, there's Intel (INTC), down 15% in the third quarter, but there's no bull case to be made with that stock or with Hewlett-Packard (HPQ), another Dow laggard.

Over on the S&P 500, Cramer said there are lots of hot stocks including Sprint Nextel (S) and Tesoro (TSO), but those stocks also need big pullbacks to be investable. Monster Beverage (MNST) is intriguing, he said, but energy drinks are a tricky category.

That's why Cramer chose next to look for sectors that have been left behind, particularly the transports. He immediately said no to the airlines and the trucking companies after FedEx (FDX) gave such poor guidance, which left him with the rails, a sector that doesn't compete with itself, doesn't have European exposure and was been hit hard by falling coal demand.

Cramer said he chose Union Pacific (UNP) as his favorite rail, as it transports the cheaper coal that does well as natural gas prices rise. He said utilities need to restock their coal, which is good news for Union Pacific, and most of the west agricultural demand is already priced into the stock.

Cramer said that investors don't always have the pass the ball, they can choose to keep it in cash instead, but hopefully this "check down" sheds some light on how to find some new ideas for the new quarter.

A Bouncing Reborn Yahoo!

Cramer offered a heartfelt congratulations to Yahoo! (YHOO - Get Report) CEO Marissa Mayer on the birth of her baby boy this week and also on the rebirth of her other baby, Yahoo!. He said this ailing Internet giant is now finally worth buying again.

After years of a flatlined stock price and a revolving door in the CEO suite, Cramer said Mayer may finally be the one to unlock the tremendous value that's hidden inside the company. He said Mayer's choice for CFO, Ken Goldman of Fortinet (FTNT) proves that Mayer is serious about returning value to shareholders.

So what's the real value hidden inside Yahoo!? Cramer said the company's remaining stake in the Chinese Alibaba is worth at least $5.8 billion, while its Yahoo Japan assets can add on another $4.77 billion. Add that total to the $5.84 per share of cash the company has on hand and Yahoo! is already valued at $14.84 a share, leaving its core U.S. businesses, including mail, sports, finance, Flickr and more, valued at just $1 per share.
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