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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cramer's 'Mad Money' Recap: Keeping Up With the Rally

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


NEW YORK ( TheStreet) -- Fund managers are scrambling to keep pace with this market, Jim Cramer told "Mad Money" viewers Wednesday, and that will only help send stock prices even higher.

Cramer said, yes, the return of the individual investor to the stock market is helping to fuel the 2013 rally, but it's only part of the story. He said as these investors pile into index funds, it's also forcing hedge funds and money managers to put their money to work even faster just to keep up. As of right now, the big boys are well behind the curve.

Cramer explained that with GDP slowing in the fourth quarter thanks to fiscal-cliff concerns and Hurricane Sandy, money managers had no choice but to raise cash and play it conservative. After all, they couldn't afford a quick 10% haircut if the U.S. economy did indeed fall over the cliff. But when the worst case didn't happen, that left them chasing the rally as seller's remorse kicked into full gear.

U.S. stocks will remain desirable investments because the Federal Reserve remains committed to keeping interest rates low and thereby hampering the bond market. Cramer said that will make high-yielding dividend stocks among the hottest stocks around in the weeks to come.

Executive Decision

In the "Executive Decision" segment, Cramer spoke with David Demshur, president and CEO of Core Laboratories (CLB), a stock that's up 228%, including reinvested dividends, since Cramer first recommended the stock in August 2006. Demshur has appeared on "Mad Money" seven times to update viewers on the growth of his company.

Demshur said the renaissance in American oil and gas is only just beginning. He said production may be at 15-year highs but development in our shale resources has only just begun. Demshur also noted that the latest data suggest North America may have not one, but two additional shale regions yet to be discovered.

Elsewhere in the world, Demshur noted Mexico is looking to expand its deepwater drilling efforts, something with which Core Labs will be helping. The company also has 12 projects underway in Iraq, including the revival of older oil fields in the south as well as new projects in the north of the country. The North Sea is another area of interest, said Demshur because that region is now aging, which plays right into the technology that Core Labs provides.

Cramer said Core Labs remains a terrific technology company that's rooted in the booming oil and gas markets. He continues to recommend the stock.

Amazon Vs. Apple

Not all stocks are treated equally on Wall Street, Cramer told viewers. For proof, look no further than the earnings releases from Amazon.com (AMZN) and Apple (AAPL), a stock Cramer owns for his charitable trust, Action Alerts PLUS .

1 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!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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