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Jim Cramer's 'Mad Money' Recap: Some 'Buys' for the New Year

The Road Ahead

It's been a full 18 months since Congress passed its last highway bill, and that can only mean one thing... the money is finally starting to flow to the companies that build roads. That's why Cramer said it's time to start picking up shares of Cemex (CX) and Vulcan Materials (VMC).

There are a lot of things going right for the aggregate and cement makers, including a huge boost in a federal loan program, states increasing funds for their own infrastructure projects and the recovering non-residential construction industry.

Cemex, based in Mexico, is the third-largest cement maker on Earth, with 21% of its earnings stemming from the U.S., 40% from Mexico and another 28% from northern Europe. The company just completed a major restructuring, strengthening its balance sheet and making it a great bet on a recovery in infrastructure spending.

Vulcan Materials is the best pure-play on U.S. construction and is the higher-risk, higher-reward stock of the two. The company never recovered to its 2007 highs of $121 a share, trading today at just $57 a share. Vulcan has a superior geography footprint, said Cramer, and investors shouldn't fear its 87 multiple as the earnings estimates will increase dramatically once stalled projects start moving again.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer schooled viewers on how the laws of supply and demand affect stock prices.

First, there's the notion of supply and demand for the stocks themselves. In the case of Twitter, there simply aren't enough shares to satisfy demand. Since Twitter is the only company of its kind, that makes it all the more valuable.

Contrast that to a stock like Citigroup (C). Not only does Citi have a ton of its own shares, it's one of a hundred banks investors could choose for investment.

There's also supply and demand for what a company makes. In the computer parts business, companies like Micron Technologies (MU) and Seagate (STX) fall on even a rumor that new factories might be built, increasing supply of things like memory and hard drives.

"Know your metrics," because simple economics affects stocks more than you might realize, Cramer concluded.

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 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 AAPL, BAC, CAT, LINE, M, NBL and NOV.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com 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 TheStreet.com, 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 TheStreet.com 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, TheStreet.com 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 TheStreet.com, 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 TheStreet.com. 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 TheStreet.com, 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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