Cramer's 'Mad Money' Recap: Next Week's Game Plan
In addition to day rates finally stabilizing, Cramer said the dry bulk shippers are also scrapping old ships at a faster rate than they're buying news ones, which is helping to bring down supply and raise rates for the remaining fleet. So good are the shippers, said Cramer, that he's willing to recommend Nordic American Tanker (NAT) in the tanker group, which now yields 6.7%.
But in the dry bulk group, Cramer said that Diana Shipping (DSX) is his favorite, as the company has less leverage than its competitors and is buying up ships that once cost $155 million for just $34 million today. While many shippers are struggling with the continued low rate, Diana has stability, as it locked in 92% of its sailing days with one to two year contracts.
Cramer said that shares of Diana are just off their highs, but they're still trading for a 4.5% discount to the company's net asset value.
Beating the Averages
The goal of investing isn't to just keep up with the major averages, it's to beat them handily, Cramer reminded viewers. That's why while many money managers will tell you to invest in index funds, Cramer has a different strategy -- investing in individual high-quality stocks.How did Cramer do against the averages? The S&P 500 is up 52% over the past eight years since "Mad Money" has been on the air, but Cramer highlighted eight stocks that have done a whole lot better. Of the stocks that were big enough to talk about eight years ago, Priceline.com (PCLN), the king of online travel, tops the list with that stock up 3,133% over the past eight years. Coming in a close second was Regeneron (REGN), which Cramer recommended at just $5 a share. That stock has soared 2,780%. Next on the list was Netflix (NFLX), up 1,882%, and NewMarket (NEU), up 1,587%. Cramer said he's long been a fan of Netflix, while he's been remiss in neglecting to mention NewMarket. Also making the list were two orphan drug makers, Alexion Pharmaceuticals (ALXN) and Biomarin (BMRN), up 1,579% and 1,197% respectively. Rounding out the top eight were Salesforce.com (CRM) and Core Labs (CLB), which still managed to eek out a 1,046% gain over "Mad Money's" lifetime.
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