This Day On The Street
Continue to site
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

Cramer's 'Mad Money' Recap: The Urge to Merge

The weekly chart of the SPDR Gold Shares also confirmed this analysis because Collins noted a failed cup-and-handle formation, which is a bearish indicator. Collins felt GLD would remain rangebound between $150 and $175 a share, giving investors no reason to be long or short the commodity.

Cramer said while he continues to think gold should remain a part of every portfolio, he agreed with Collins that there's no reason to add to a position, and it makes sense to remain cautious on gold. He said the SPDR Gold Shares ETF has held up far better than any of the gold mining stocks, which is why he continues to recommend that ETF over any other gold investment.

Making Money After the Breakup

Breaking up may be easy for companies to do, Cramer reminded viewers, but the real money seems to be made after the breakup has occurred. That's certainly been the case with Tyco International (TYC), he noted. The company's spinoffs of Covidian (COV), TE Connectivity (TEL) and most recently ADT (ADT - Get Report) have been off to the races.

ADT came public in October 2012, said Cramer, and since then has risen 30%, a move that he's caught for his charitable trust, Action Alerts PLUS . But with the housing recovery powering ever higher, is the move in ADT over? Not by a long shot.

ADT currently has 6.5 million customers for its safety and security services that include everything from fire and carbon monoxide monitoring to home and business security products. A full 90% of the company's revenue are recurring and ADT enjoys 25% market share, making it the largest provider in its markets.

Cramer said ADT would make an excellent takeover for a larger company, but even without a takeover the company is still attractive because it's expanding its services and always offers the best products and pricing around. ADT is paying down debt and returning cash to shareholders with a 1% dividend yield and a stock buyback program that was recently accelerated by management.

Cramer noted that while ADT has already run up big, given the company's potential for growth this is one name that's just getting started.

Lightning Round

In the Lightning Round, Cramer was bullish on Trulia (TRLA), Realogy Holdings (RLGY), Banco Bilbao Vizcaya Argentaria (BBVA), Green Mountain Coffee Roasters (GMCR), Annaly Capital (NLY), Cisco Systems (CSCO) and American Tower (AMT).

Cramer was bearish on Banco Latinoamericano (BLX) and Imax (IMAX).

Executive Decision

In the "Executive Decision" segment, Cramer spoke with Nick Akins, president and CEO of American Electric Power (AEP - Get Report), a utility at the heart of North America's oil and natural gas renaissance, but also one that's transforming itself to an environment where coal is no longer king.

Akins said that during 2012, American Electric Power was focused on transition and removing risk from its business. As the economy stabilizes in 2013, his company is now poised for growth and prosperity. American Electric offers a 4.1% dividend yield and Akins said he's confident that yield will only go higher as the company continues to grow.

Akins said that with so much growth in the Eagle Ford and Utica shale regions of the country, American Electric will be well-positioned for future growth and its customers will also benefit from the transition away from coal towards cleaner-burning natural gas. The company will also continue to invest another $4 billion to $5 billion into retrofitting and cleaning its coal-fired facilities as well, dramatically lowering emissions.

Cramer said American Electric Power is a utility that's doing a lot of things right, which is why it should be a part of investors' portfolios.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer told viewers not to be squeamish about buying a stock on weakness.

Take Google (GOOG - Get Report), a stock that everyone wants to be in as it powers over $800 a share, said Cramer.

But where were all those investors back in October when the stock fell $60 a share on a weak quarter? Google didn't have many believers back then, he recalled, despite the company continuing to deliver a ton of growth and profit potential.

Google was able to turn itself around since October, Cramer concluded, but only those with the guts to buy on the pullback were able to truly profit from the move.

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 ADT and CSCO.

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.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GLD $123.65 1.95%
AEP $63.50 0.70%
ADT $41.98 0.07%
GOOG $693.01 0.29%
AAPL $93.74 -1.15%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs