This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

Cramer's 'Mad Money' Recap: The Benefit of Doing Nothing

With over $5 billion in cash on its books, Amazon currently trades at a whopping 110 times earnings. That may sound wildly expensive, noted Cramer, but fund managers look at the "out years," like 2015, where Amazon is expected to trade for a more reasonable 35 times earnings. This makes the stock not so expensive given its 36% growth rate.

Google is in a similar position. It dominates online search, commanding a 66% market share in the U.S. The company is a major in mobile with its Android operating system and it has a mobile and social strategy, as well as YouTube and other opportunities.

Given that online advertising still represents only 10% of all advertising, Google clearly has lots of growth ahead of it. Google trades at only 11 times its expected 2015 earnings of $67 a share.

Lightning Round

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

Equinix (EQIX): "That's a cloud play that I don't expect to come down at all before the end of the year."

Cliffs Natural Resources (CLF): "No. If it goes up tomorrow, I want you to ring the register."

EOG Resources (EOG): "I think that EOG goes to $150."

Hospira (HSP): "I like this one. I also like Covidien (COV)."

NovaGold Resources (NG): "I prefer the SPDR Gold Shares (GLD) if you want to earn gold."

Computer Sciences (CSC): "I worry about them. I don't like the fundamentals."

Questcor Pharmaceuticals (QCOR): "No, they blew it."

OraSure Technologies (OSUR): "Everyone is selling it, but I like it. I think it's cheap."

Diageo (DEO): "If that stock comes down even $1, I like it. "

Express Scripts (ESRX): "When this stock comes in I want you to pull the trigger."

Johnson & Johnson (JNJ): "I think they have a great balance sheet and new management."

Executive Decision

In the "Executive Decision" segment, Cramer sat down with Edward Aldag, chairman, president and CEO of Medical Properties Trust (MPW), a real estate investment trust that specializes in hospitals, acute care and rehab facilities. Medical Properties currently has a 7% yield.

Aldag started off by saying that over the past year his company has raised over $1 billion in capital and has put all but $400 million of it to work for shareholders. He said Medical Properties' prospects for 2013 now look outstanding.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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 16,768.17 +90.27 0.54%
S&P 500 1,961.08 +10.26 0.53%
NASDAQ 4,471.3720 +18.58 0.42%

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