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: A Divided Market

Ponsi also went further, using an hourly chart to note that the retail stocks are now just 1% below their all-time closing highs, meaning there will be little resistance to the upside. He suggested adding to a position in the group if it either pops above $46 or pulls back below $45.

Cramer was skeptical of this view, however. He said while the retail group has been resilient, he's worried about individual company blowups, as seen in Wal-Mart (WMT) or Gap today. He said losses from these names would undo any upside seen in stronger names like Home Depot (HD).

The Future of Starbucks

Investors have lots of questions about the future at Starbucks (SBUX), Cramer told viewers, but the company's analyst meeting is Wednesday so those questions will soon have answers. He said this company's bi-annual meeting is an important one as Starbucks made good on all its promises from 2010 and should have a promising roadmap through 2014.

Cramer expects to hear how the U.S. market is doing, a market that still accounts for 75% of company sales. He also expects to hear about international sales, including Europe and China as well as the company's debut into India. There are also questions surrounding Starbucks' single-serve k-cup business and how that relates to its new Verismo line of single-serve brewers.

In addition, there is Starbucks' proposed merger with Teavana (TEA), which is steeped in controversy, causing a field day for the short-sellers.

Starbucks has plenty of room for growth, both domestically and abroad. The company is also flush with cash. Cramer said with the price of coffee now 30% off its highs there are many things going right for this company, which currently trades at just 23.8 times earnings with a 19% growth rate.

Lightning Round

In the Lightning Round, Cramer was bullish on Coca-Cola (KO), Sprint Nextel (S), Kinder Morgan Energy Partners (KMP), Linn Energy (LINE), Pepsico (PEP), Berkshire Hathaway (BRK.B) and Kellogg (K).

Cramer was bearish on Toyota Motor (TM) and Capital Product Partners (CPLP).

Executive Decision

In the "Executive Decision" segment, Cramer sat down with Russell Goldsmith, chairman and CEO of City National (CYN), a Los Angeles-based business bank that also offers wealth management services.

Goldsmith said that many of City National's customers fall into two camps when it comes to the looming fiscal cliff. He said that many are simply sitting on their hands, not hiring, not investing and not borrowing. Uncertainty breeds caution, Goldsmith noted, which is why many are waiting to see what the new rules will be before moving forward.

But a few customers see opportunity, even in an uncertain market, and City National has been making loans to those customers, primarily in the technology and entertainment sectors.

Goldsmith also commented on California's growing economy. He said his state is now number one in job creation and unemployment is finally coming down thanks to some budget stability at the state level. You can't have an American recovery without California, Goldsmith continued.

Turning back to the business at City National, Goldsmith said his bank continues to have a strong balance sheet and has been making smart acquisitions to bolster its already strong wealth management business. He expects the U.S. economy to pick up in the second half of 2013.

Cramer continued his recommendation of City National, one of the few growth banks he follows.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer reminded viewers that things are only relevant until they aren't.

He said that at this time last year the markets were embroiled in Europe's sovereign debt woes, troubles that, it was thought at the time, would never end. But they did. The European Central Bank hammered out a grand compromise, banks raised cash and the countries themselves forged the budgets thy needed to regain their footing.

That's why Banco Santander (SAN), which traded just above $4 a share this time last year, is now worth almost $8 a share today, because the crisis has largely passed, he said.

Fast forward to today, when the U.S. is having its "Santander" moment, taking stocks like KeyCorp (KEY), a stock Cramer now owns for his charitable trust, Action Alerts PLUS , from almost $10 a share to now down below $8. Cramer said there's nothing wrong with KeyCorp other than being based in the U.S.

Be prepared to buy when everyone else is selling, Cramer concluded.

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 a position in KEY, KO and SBUX.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com 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 TheStreet.com, 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 TheStreet.com 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, TheStreet.com 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 TheStreet.com, 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 TheStreet.com. 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 TheStreet.com, 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.

2 of 2

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 16,677.90 +216.58 1.32%
S&P 500 1,950.82 +23.71 1.23%
NASDAQ 4,452.7920 +69.9450 1.60%

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