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: Looking for Real Leaders

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

NEW YORK ( TheStreet) -- This market needs leadership, but not reckless leadership, Jim Cramer cautioned his "Mad Money" TV show viewers Thursday. He said now is the time when investors need to stay focused because the markets may now be due for a pause.

Cramer explained that the market's big move in recent weeks started off well enough, with high-yielding dividend stocks leading the way. Those stocks were followed by the food, drug and beverage names, also great companies. Then the transports and technology names rallied, he said, followed most recently by the industrials, oils and mineral stocks. That was all well and good, until yesterday.

Yesterday and today saw big moves in Micron Technology (MU), which rallied over 4% despite being a second-tier semiconductor company. Boston Scientific (BSX) was also up big, despite that company being an also-ran. These are not stocks that should be leading a rally, said Cramer.

Other stocks with huge moves included Tesla (TSLA), a stock with 46% of its shares currently sold short. Green Mountain Coffee Roasters (GMCR), another hotly contested stock, saw its shares up 27%, along with Barnes & Noble (BKS), a company Cramer called the best house in a terrible neighborhood.

Cramer said it's certainly possible to be intellectually right on names like these while at the same time being practically wrong -- as many of the shorts found themselves over the past two days -- but moves likes these seem "frothy" he said, and could be indicative of an imminent pullback.

"This market needs to cool down," Cramer concluded, or these moves simply won't last.

Executive Decision: Joseph Papa

In the "Executive Decision" segment, Cramer sat down with Joseph Papa, chairman and CEO of Perrigo (PRGO), a company that just delivered a two-cents-a-share earnings miss on what was perceived as lighter-than-expected revenue. Shares of Perrigo are up 152% since Cramer first recommended the company in February 2010.

Papa said he's excited about his company's 18% growth in the quarter, along with its 20% growth in its health-care product division. He said Perrigo's entrance into pet care products has been a big win for consumers, retailers and his company, with Perrigo products now available in our country's largest pet care chain, PetSmart (PETM).

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from

  • 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