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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Jim Cramer's 'Mad Money' Recap: Lost in the Rotation

Schiller continued there are tons of synergies that will be realized from the merger of two Gulf drillers. He said boats and helicopters that are running at 60% capacity can now run at 80% or more, saving money. Insurance costs can be combined, saving money. Add that to the boost in reserves and the deal is clearly a big winner.

Cramer agreed, saying at this new lower price shares of Energy XXI, with EPL included, are a steal.

When Breaking Up Doesn't Work

Cramer has long been a fan of corporate breakups as a way of unlocking shareholder value. Sometimes, however, not breaking up may be the best course of action. That's the case with Dow Chemical (DOW) despite activist investor Dan Loeb suggesting otherwise.

Cramer said while it's true Dow makes both commodity and specialty chemicals, the stock's performance, up 10% so far this year and 50% over the past 12 months, proves Dow's vertically integrated model is working just fine.

Unlike other chemical breakups, Dow makes commodity chemicals that it then uses as feedstock for its specialty operations. Dow has already announced plans to spin off a few ancillary businesses, making its remaining business all the more focused.

After delivering a 22-cents-a-share earnings beat on a 3.4% rise in revenue, Cramer said there's little more investors could ask for. Dow has already announced an increase to its buyback program as well as a boost of its dividend to 3%.

Trading at just 14 times earnings, Cramer said there's nothing better than a motivated CEO with an activist push.

Lightning Round

In the Lightning Round, Cramer was bullish on Skyworks Solutions (SWKS) and DaVita (DVA).

Cramer was bearish on Cara Therapeutics (CARA), ARM Holdings (ARMH), Raven Industries (RAVN) and Lionsgate Entertainment (LGF).

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
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 16,943.16 +23.57 0.14%
S&P 500 1,983.07 +1.47 0.07%
NASDAQ 4,526.0850 -1.4290 -0.03%

Brokerage Partners

Rates from Bankrate.com

  • 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