This Day On The Street
Continue to site
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

Cramer's 'Mad Money' Recap: A Pause to Reflect

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.


NEW YORK ( TheStreet) -- With the markets taking a rare pause thanks to Hurricane Sandy, Jim Cramer told his "Mad Money" TV show viewers Tuesday that he's had a chance to catch his breath in the middle of a busy earnings season to make some observations.

Cramer said that for the past few years, U.S. companies have been aggressively trying to distance themselves from the sluggish U.S. market, opting to "go global" and expand into Europe, China and emerging markets. That strategy worked well, he said, up until a few years ago when Europe's financial mess brought the global economy to a screeching halt. Now, the evidence is clear. Those companies that now rely on business overseas are doing poorly, while those still based largely in the U.S. are flourishing.

That's certainly the case with Ford Motor (F), a company whose strength in the U.S. was almost completely wiped out by losses in Europe. Banks like US Bancorp (USB) and Wells Fargo (WFC), a stock he owns for his charitable trust, Action Alerts PLUS , are firmly rooted in U.S. mortgages, said Cramer, and they are performing well, as are others like Whirlpool (WHR).

Meanwhile, companies like Owens Corning (OC) are floundering as their big bet on Europe failed to pay off. Likewise with Stanley Black & Decker (SWK) and luxury retailer Coach (COH).

Cramer said this season's earnings have proven time and time again that it's hard to make money overseas, and the easy money is once again back in the U.S. of A.

Buying Into News Corp

Breaking up is easy to do, Cramer reminded viewers, as he highlighted yet another company that's splitting itself apart in an effort to unlock value.

He said his charitable trust, Action Alerts PLUS , has been buying shares of News Corp (NWSA - Get Report) ahead of the company's plan to spin off of its publishing assets.

Cramer said News Corp is a "best of breed" media company, with solid assets in its Fox News cable franchise, its Fox TV network and its satellite TV and content businesses. The company does have an Achilles heel, however, and that's its slow-growing publishing division, which was hurt by a very publicized phone-hacking scandal last year. Publishing represents 27% of News Corp's revenue and that is the division the company is set to jettison next year.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
SYM TRADE IT LAST %CHG
NWSA $15.54 -0.58%
AAPL $132.54 0.88%
FB $80.54 0.07%
GOOG $540.11 -0.44%
TSLA $247.73 0.86%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs