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Cramer's 'Mad Money' Recap: No Easy Answers

Cramer said Tibco is in a tough business and commended Ranadive for coming on the program and taking the blame. He fell short of recommending Tibco but told investors that it is entirely possible to miss big then come on strong thereafter.

Gambling on MGM

In this uncertain market, investors can bank on a good old-fashioned turnaround story, Cramer told viewers as he featured MGM Resorts (MGM - Get Report), a company that's not beholden to the stalemate in Congress nor the outcome of the fiscal cliff.

Cramer explained that MGM was on death's door in 2008, when the company's new CEO took over and started a relentless march towards fixing its many problems. Like many casino operators, MGM took on far too much debt in the go-go 2000s, only to be hit hard when the recession took hold. But now traffic in Las Vegas in on the mend, rising 3% this year and approaching its 2006 highs.

Cramer was also quick to note there are no plans to build new casinos in the next few years, giving MGM further room to recover.

MGM is in the middle of refinancing much of its high-interest debt at rates between 9% and 13% with far more reasonable terms. The company has already retired $4 billion of debt over the past five years.

Adding icing to the cake, MGM owns 51% of its business in China's Maccau, a privilege that only six operators have been given thus far. MGM has a second casino under construction, which will only further add to its bottom line in the coming years.

Adding it up, Cramer said MGM, a stock he hasn't spoken about in years, is now giving investors three ways to win: a rebound in Vegas, a better balance sheet and a pickup in Maccau.

Lightning Round

In the Lightning Round, Cramer was bullish on Enterprise Products Partners (EPD), Dunkin Brands (DNKN) and Snap-on (SNA).

Cramer was bearish on Pandora Media (P).

Shining Blackstone

If Washington could only solve the fiscal cliff, we could indeed have a pretty strong bull market, said Cramer. That means a stock like Blackstone Group (BX - Get Report) would become an excellent investment.

Cramer explained that Blackstone makes money in a multitude of ways. First, it's a hedge fund that makes a percentage off the amount of money it has under management. On a fiscal cliff resolution, more people are likely to leave bonds, said Cramer, in favor of Blackstone's higher-yielding funds.

Next, Blackstone also buys up troubled companies, fixes them and returns them to the IPO market, a market that would yield higher prices with a booming economy.

Blackstone is also a real estate play, said Cramer, as the company has $54 billion in real estate holdings including Hilton Hotels, another winner if the economy takes off. Shares of Blackstone currently trade at just 7.3 times earnings with a 19% growth rate.

Cramer admitted he hasn't liked the opaque nature of how Blackstone makes its money. But with so many ways to win in a booming economy, the company will surely make a ton for investors one way of another.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer reminded investors that when stocks come under fire, they need to run from, not to, the battlefield. Cases in point: Herbalife (HLF), Mellanox Technology (MLNX) and Allscripts Healthcare (ESRX).

Cramer said he had previously put both Mellanox and Allscripts into the sell block: Mellanox when the company's CFO "retired" without warning, and Allscripts when the company's fundamentals began declining. The lessons? When management leaves unexpectedly, sell. When the fundamentals are declining, don't bet the farm on a takeover.

Then there's Herbalife, a company Cramer had come to like but changed his mind after colleague Herb Greenberg began raising red flags about the company's sales model. Thursday, an activist investor made formal allegations at the company, sending shares down hard.

The lesson? Don't take unnecessary risks and sell at the first sign of trouble.

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 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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