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Cramer's 'Mad Money' Recap: When Bears Become Bulls

Also at the conference: a bearish call against Caterpillar (CAT), a company that Cramer said he neither likes nor dislikes at this point in the cycle.

All Hail Marissa Mayer

Yahoo! (YHOO - Get Report) may have missed on earnings but the markets didn't seem to care because shares rose to new all-time highs. How can that be? Cramer said it's because of CEO Marissa Meyer.

After years of floundering, Meyer has brought fresh ideas to Yahoo!, said Cramer, and she knows how to execute them. First, Yahoo! has been able to stem the tide of falling page views because it has focused its efforts on delivering better content and a better user experience to all of its properties.

Next, Yahoo! has been able to stop losing great talent. Not only has Meyer brought down the attrition rate substantially, but the number of former employees returning to the company is growing. Finally, Cramer said that Yahoo! has been able to refocus on mobile, a key segment for everyone on the Web. The company used to have only a few dozen mobile engineers but now there are hundreds.

Even more impressive, Meyer has been able to achieve all of these feats without dinging the company's balance sheet. Yahoo! still has $4.8 billion in cash, plenty of firepower to keep its turnaround efforts alive.

Cramer said that the decline in advertising revenue, thanks in part to programatic ad buying, is troublesome, but he has no doubt that Meyer will have a strategy to combat the losses once the company has successfully revitalized itself. He said it's clear that the market agrees with everything Meyer is doing.

Lightning Round

In the Lightning Round, Cramer was bullish on Exxon Mobil (XOM), EOG Resources (EOG), Occidental Petroleum (OXY), Chart Industries (GTLS), Lions Gate Entertainment (LGF) and Johnson & Johnson (JNJ).

Cramer was bearish on Walter Industries (WLT) and Lululemon Athletica (LULU).

Executive Decision: Jim Taiclet

In the "Executive Decision" segment, Cramer spoke with Jim Taiclet, chairman, president and CEO of American Tower (AMT - Get Report) on the heels of an extremely negative research report by Carson Block of Muddy Waters that called for a 40% decline in the stock. Shares of American Tower are up 44% since Cramer last spoke with Taiclet in February 2011 and 111% since Cramer first got behind the stock in September 2009.

Taiclet said that normally American Tower would not even respond to such an "ill-informed" report. However, given the allegations of fraud, the company felt compelled to set the record straight.

At issue are some of the company's recent acquisitions in Brazil. According to the report, American Tower overpaid and misrepresented how much it paid for those assets. However, Taiclet explained that the deals were made using both debt and equity, and the report only cites part of the overall deal. He said American Tower will be filing an 8-K form with the Securities and Exchange Commission to set the record straight.

Taiclet continued that American Tower has reputable, U.S.-based accounting firms that audit all its acquisitions as well as the company's financials at large. He said the company's international assets are the highest-returning assets in the company.

Finally, Taiclet responded to the allegation that he's selling 90% of his stock in the company. He said that nearly two-thirds of his net worth is in American Tower stock, and the option sales are part of a standard selling plan to pay taxes and other expenses. Taiclet said the report grossly misrepresents both his holdings and American Tower overall.

Cramer said the company's 8-K filing should put these allegations to rest. He said he's a believer in Taiclet, but advised investors to do their homework once the 8-K report is filed.

Executive Decision: Gary Burnison

In a second "Executive Decision" segment, Cramer sat down with Gary Burnison, CEO of Korn/Ferry International (KFY), the high-end headhunting firm that helps companies around the world find top-level executives.

Burnison said that many companies are still slow to hire new executives and that trend may become the new normal. That's why Korn/Ferry has made a series of acquisitions to become a full-fledged talent management agency, offering adjacent services to help companies build capability within their organizations.

Burnison said people still make the difference to the bottom line, which is why his company focuses a lot on who a candidate is and how his or her unique skills will make a difference to his client's firm. Among the most sought-after traits: cultural dexterity, or the ability to operate in countries around the globe.

When asked about the global economy, Burnison said Europe does appear to be bottoming, at least for the larger firms. Overall, life and bio sciences are among the hottest sectors looking for quality people.

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 DD, OXY and WFC.

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.
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