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Cramer's 'Mad Money' Recap: The Looming Cliff

Ralcorp also gives ConAgra a bigger presence in restaurants, noted Rodkin. His company already provides McDonald's (MCD) with potato products but now gets to add griddle items. In all, Rodkin expects $225 million a year in synergies from the acquisition, much of that in procurement costs.

When asked about the health of the consumer, Rodkin said that, overall, consumers are still looking for quality products that represent good value, which is what ConAgra's branded products, and now Ralcorp's private-label products, provide for customers.

Cramer said plainly that ConAgra's stock is heading higher.

Lightning Round

In the Lightning Round, Cramer was bullish on Pfizer (PFE), CVR Energy (CVI) and Southwestern Energy (SWN).

Cramer was bearish on Permian Basin Royalty Trust (PBT), Research In Motion (RIMM), Abercrombie & Fitch (ANF), Wendy's Company (WEN), McDonald's (MCD), Dynavax Technologies (DVAX) and Fuel Systems Solutions (FSYS).

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Tim Collins over the chart of Banco Santander (SAN), Cramer's barometer for the health of the European economy.

According to Collins, the daily chart of Santander is beginning to show signs of a major move higher. He noted a bullish divergence in the stock's relative strength (RSI) and stochastics (STO) indicators as it has been forming a rounded bottom pattern. Collins also noted the TRIX, or triple exponential moving average, is also displaying a bullish crossover. The last two times that event occurred, Santander rallied 13% and 26%.

Santander's weekly chart also shows promise, according to Collins. He said the stock's latest rounded bottom is different from the previous two as this time the stock has been trading sideways, not lower, in a flag formation. Collins felt that starting half a position now in Santander would be in order, with the second half coming as the stock trends over $8 a share.

Cramer was in agreement with Collins' research, saying that if Santander rallies, it may take the rest of the Spanish economy with it.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on the tale of two retailers, Best Buy (BBY - Get Report) and (AMZN - Get Report).

Cramer said that while Best Buy's founder is looking to raise billions of dollars to take his beleaguered company private at what will likely be sky-high interest rates, Amazon was quietly able to issue three-, five- and 10-year bonds at the super low rates of .74%, 1.3% and 2.6% respectively.

Why the difference? Cramer said it all comes down to execution. Best Buy is a faltering enterprise, he noted, while Amazon continues to grow into an ecommerce powerhouse that doesn't need millions of dollars of stores or staff to sell the same goods at better prices.

He said Best Buy might not make it as a retailer, as he can't think of anyone foolish enough to want to invest in the ailing company. Meanwhile those who invested in Amazon's bonds are probably making a very wise investment.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

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

-- Written by Scott Rutt in Washington, D.C.

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC
At the time of publication, Cramer's Action Alerts PLUS had no position in the stocks mentioned.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 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, 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, 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 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, 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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PVH $95.60 0.00%
AMZN $659.59 0.00%
BBY $32.08 0.00%
CAG $44.56 0.00%
SAN $5.03 0.00%


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