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: An Irrational Stock Market

So should investors sell Pfizer to buy Zoetis? Cramer said absolutely not! Pfizer will retain 80% of Zoetis after the IPO and will be using the proceeds to reward shareholders with a sizable stock buyback. In addition, the split companies will both receive higher market valuations as individual companies are easier for analysts to value.

Cramer said he would get in on the Zoetis IPO if possible, but noted that existing Pfizer shareholders will also do quite well in 2013.

Riding the Rails

There's a bull market roaring on America's rails, Cramer told viewers, but that doesn't mean investors should jump into just any rail stock. He said while railroad operators CSX (CSX) and Norfolk Southern (NSC) have all posted terrific results, it's the rail car makers that represent the most value.

Specifically, the demand for tanker cars has been red-hot as the American energy renaissance has created the need for thousands of new tankers. Other industries need them, too, to move everything from chemicals to corn syrup.

The railroad business is highly cyclical, Cramer warned, which means that if the economy falters, this group will be hit hard. But if America continues to recover, then the rail car makers is the place to be.

Of the four major players, Cramer said that American Railcar (ARII) is his favorite, as the company gets 20% of sales from tankers and it offers a 2.8% dividend. Next on the list would be Trinity Industries (TRN), which also gets 20% of revenue from tankers. Unlike American, Trinity has exposure to other industries such as barges and windmills, which makes it more risky.

Cramer said he'd avoid FreightCar America (RAIL) because that car maker has a lot of exposure to the weak coal market. He is also not a fan of Greenbriar (GBX).

Lightning Round

In the Lightning Round, Cramer was bullish on EOG Resources (EOG), Westar Energy (WR), Morgan Stanley (MS), Duke Energy (DUK), Masco (MAS), Healthcare Trust of America (HTA) and Travelers Companies (TRV).

Cramer was bearish on Isis Pharmaceuticals (ISIS), Nuance Communications (NUAN) and Genworth Financial (GNW).

Am I Diversified?

In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.

2 of 3

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 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

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