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Cramer's 'Mad Money' Recap: Taking Stock of the Rally

Stocks in this article: GOOG FB LNKD LCC BMC MTG ASNA RDN HPT VALE HNZ

Shares of US Airways will be trading in a range until the deal is approved, said Cramer, but if it follows the pattern of other acquisitions that stagnation will be quickly replaced by a sharp move to the upside in the following years.

Lightning Round

In the Lightning Round, Cramer was bullish on MGIC Investment (MTG), Radian Group (RDN), Hospitality Properties Trust (HPT) and Vale (VALE).

Cramer was bearish on BMC Software (BMC) and HJ Heinz (HNZ).

Executive Decision: David Jaffe

In the "Executive Decision" segment, Cramer sat down with David Jaffe, president and CEO of Ascena Retail Group (ASNA), a stock that popped 14.3% Tuesday on the company's three-cent-a-share earnings beat and 2% rise in same-store sales. This came after the company's shares dropped after lowering its full-year guidance on Jan. 10.

Jaffe said with Ascena's recent acquisition of Charming Shoppes, it has "had a lot going on" over the past few months. He said that unlike other acquisitions, which only included a single brand, Charming had three brands plus a lot of extras. Ascena continues to focus on both the Lane Bryant and Katherine's brands, Jaffe noted, and has already shuttered Fashion Bug and continues to work on integrating the company's shared services. Ascena has a new president for Lane Bryant, Jaffe added, along with several other new key executives.

Jaffe said he feels good about the spring season, which includes an early Easter. He said time will tell how the new spring merchandise will be received but added "so far so good."

When asked about Ascena's foray into boys clothing, Jaffe said that of the stores where it has tested a dual-gender concept, sales for the girls' merchandise have not declined, which is translating into an increase for overall store sales.

Cramer said that after stumbling last quarter, he now feels Ascena is back to delivering positive results for its shareholders.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer addressed all those who are worried about what happens when the Federal Reserve stops its stimulus efforts. He said these "fear mongers" are doing everything they can to scare investors out of the markets and are, in fact, only hurting individual investors with their "cautious" advice.

Cramer said investors need to give Fed Chairman Ben Bernanke some credit because he most certainly has an orderly exit plan for the Fed's stimulus activities. Furthermore, if investor had listened to the bears and stayed out of the markets out of fear, they would have missed this miraculous rally over the past few years.

Maybe the rich can afford to sit on the sidelines, Cramer concluded, but the individual investor needs to be in this rally and making as much money as he or she can and as fast as possible.

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 FB and VALE.

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.

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