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Cramer's 'Mad Money' Recap: Nasdaq's Integrity Outage

Cramer said at IBM, under Louis Gerstner's leadership in the 1990s, the company exited the retail desktop PC market, fixed the balance sheet and reinvented the company as a primarily software and service company. That's where Whitman finds herself with HPQ, Cramer said. The industry is moving so quickly to smaller, faster devices. Cramer doesn't know if this is transitioning too fast for Hewlett-Packard to transcend the riptides.

Unlike Howard Shultz, the CEO at Starbucks who expanded overseas and turned the stores into places that beckons customers inside, there's no new products coming from HPQ, and it's already huge internationally. HPQ can become a value-added software, service and printer company, Cramer says. Without economic growth worldwide, it can't make owning the stock a worthwhile proposition right now.

Bottom line: Cramer says HPQ needs a new product, worldwide growth and a lot of luck to spark another turn.

Lightning Round

In the Lightning Round, Cramer was bullish on Xerox (XRX), Baxter (BAX) and LinkedIn (LNKD).

Cramer was bearish on Amarin (AMRN), Baidu (BD) and Interpublic Group (IPG).

Cooking With Hain's

In today's installment of this week's "Cramer's Cookouts," Cramer took a look at Hain Celestial Group (HAIN - Get Report), which offers a defensive position in today's market.

On Monday, Cramer suggested buying Hain's ahead of its quarterly earnings announcement. On Wednesday, the company blew away fourth-quarter expectations, reporting 32.1% year-over-year revenue growth and posting earnings of 65 cents per share, besting estimates by 3 cents per share.

At the close Thursday, Hain was up 10.96% over the last two days, hitting an all-time high.

Cramer welcomed Irwin Simon, the founder, chairman and CEO of Hain Celestial, to his cookout. Simon joked that there was so much excitement about his company that HAIN froze the Nasdaq. He said he shared Cramer's disappointment in the Nasdaq, particularly on a day when his company reported such promising numbers.

Simon said that with childhood obesity on the rise, his organic and natural food products are selling more and more. He pointed to juices and personal care products as a key area of growth. At home and overseas, combined consumption of its products has increased 6.7% over the last 12 weeks, compared with 8% in the previous quarter. Conventional food business is flat, Simon said. The juicing category is soaring, and consumers are moving away toward organic, natural products.

Whole Foods (WFM) is the biggest purchaser and retailer of Hain's products, followed by other retail giants Wal-Mart (WMT), Costco (COST) and Wegmans.

Eating healthy is not a fad, or a trend, Simon told Cramer. It's becoming a more important part of life.

No Huddle Offense

Cramer wanted to know: Could we be more in hostage to bonds? He sees an angry, mean bond market, bent on revenge. The Federal Reserve is fed up of shouldering the load. Where is Congress? Where is the president? Cramer wonders how many houses can Fed Chairman Ben Bernanke buy and sell? How many bridges, tunnels and exit ramps?

If this is what the bond market is like when the Fed is buying, who knows how high rates will shoot when it stops, Cramer said. If he was Bernanke, he'd stop talking about what he's doing -- can the transparency and start playing a little coy.

With 10-Year Treasury yields nearing 3%, where is the demand coming from? Even if homebuilders are optimistic, Cramer thinks the bond market has cooled off housing, the recovery's leadership sector. His best guess is that foreign governments are selling. Given that foreigners own nearly 50% of the U.S. $15 trillion debt, why shouldn't they be selling? They're hearing comments about tapering, they don't want to see their gains disappear, they want to ring the register and repatriate the money, Cramer said.

The trend of higher rates is here to stay, Cramer said. The economy can handle that if it can just catch its breath.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

-- Written by Chris Sahl in Boston.
At the time of publication, Cramer's Action Alerts PLUS had a position in COST.

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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AFCE $52.44 0.00%
HAIN $42.24 -0.87%
HPQ $12.57 -1.49%
AAPL $95.03 -2.90%
FB $116.73 7.20%


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