The chart of Potash also followed Fibonacci theory, with the stock displaying a 50% retracement from its highs, making it now poised for a powerful move to the upside and with $56 a share now feasible.
Cramer said while he's a believer in the technical analysis, he's not been a fan of either of these two stocks. He said investors who believe in a global turnaround should consider Potash, but that would be a bold call this early in the economic cycle. As for Intuitive Surgical, Cramer told viewers to look up CNBC colleague Herb Greenberg's recent analysis on that company's outlook.
In Defense of Harris
The defense stocks have been on fire all year despite the sequester, Cramer told viewers, that is, except for Harris (HRS), which has remained flat. But that doesn't have to be the case, said Cramer, because this company is the perfect candidate to break itself up and reward shareholders.
Cramer explained that Harris manufactures communications equipment for both military and commercial applications. The company has a hand in everything from aircraft communications systems to those used on ships and oil rigs to those used by hospitals to transfer high-speed medical records. Harris even maintains its own fleet of satellites to help make communications possible in the most remote areas of the globe.But with its commercial and military divisions having very different buying cycles and growth rates, Harris is the perfect candidate to unlock tremendous value, said Cramer, as the separate entities will attract different investors. Harris' defense business is a slow grower with a juicy 3% yield, while its commercial division is a faster growth deserving of a higher multiple. Cramer compared the possibility of a Harris breakup to Motorola in 2011. He said that split generated a 52% return for investors, compared to only 30% for the broader averages. According to his analysis, Harris could be worth a full 47% more than it trades today just by separating its two businesses.
Lightning RoundIn the Lightning Round, Cramer was bullish on Applied Materials (AMAT), Enterprise Products Partners (EPD), Loews Corp (L), MGM Resorts (MGM) and Las Vegas Sands (LVS). Cramer was bearish on BMC Software (BMC).
Executive Decision: Peter McCauslandIn the "Executive Decision" segment, Cramer sat down with Peter McCausland, executive chairman, and Mike Molinini, president and CEO, of Airgas (ARG), a stock that has soared since the company rebuffed a hostile takeover in 2011. McCausland said that back in 2011 he had no idea Airgas' stock would rise as much as it has, but he did know the recession was a low point for the company and earnings would rebound, and they have. Molinini noted the company's nonresidential construction customers have been weak of late, as many projects are on the books but have yet to begin construction. That led to the company offering only tepid guidance this quarter. Among some of the other concerns for Airgas: the company's conversion and integration of its software to a system provided by SAP (SAP). McCausland said much of the heavy lifting for that conversion is now behind the company, but it has indeed been a huge distraction as workflows and processes had to be adjusted. Also weighing on the company was the government sequester, which Molinini said is causing biotech companies to be reluctant to spend because their grant funding has become uncertain. But even with all of the negatives and concerns, McCausland said he's never been more excited about the company, noting Airgas is very well positioned to take advantage of the recovery once it begins in earnest. Cramer said he agreed with that sentiment because Airgas has a hand in so many different growth businesses.
No Huddle OffenseIn his "No Huddle Offense" segment, Cramer said now is the time to consider buying some old-school tech names that have been hammered and left for dead. He said after lower PC sales crushed the sector, stocks like Microsoft (MSFT) and Intel (INTC) have been not only cheap, but have lowered expectations to a level where beating them will not be a problem. Cramer said there are a number of names that could be considered including the revived Hewlett-Packard (HPQ), AvNet (AVT), Seagate (STX) and Cree (CREE). 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
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV