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: Out With a Bang

But Cramer warned that, for the moment, Kandi is simply a go-cart company, one with no analyst coverage and little oversight by the Chinese government. That fact was driven home when the company received a formal investigation letter from the SEC back in November, yet chose not to disclose it in the company's quarterly earnings. Kandi buried the investigation in the 16-page "risk factors" section of its annual report.

Maybe someday Kandi will be the way to play electric cars in China, Cramer concluded, but for now this stock is just far too risky.

Respect the Rotation

"Respect the rotation," was Cramer's next lesson for viewers as he recounted when he first learned this lesson in the early days of his hedge fund.

Cramer explained the first two stocks purchased by his fund were Heinz and Kimberly-Clark (KMB), two stocks he deemed as unassailable, with solid products and terrific management. The only problem was the economy was picking up and investors were leaving the consumer products stocks for everything related to industry and construction.

That was a big problem, Cramer recalled -- his fund ticked down 9.5% in the blink of an eye, coming dangerously close to the dreaded 10% loss that would have allowed investors to take their money back.

But Cramer said that's why investors need to know what they own and why they own it. For only with that knowledge can they take the beatings the biotechs and the cloud stocks are currently taking. Only with knowledge and homework will you have the courage to buy more as everyone else is heading for the exits.

Lightning Round

In the Lightning Round, Cramer was bullish on New York Community Bancorp (NYCB), DigitalGlobe (DGI), GNC Holdings (GNC), Chicago Mercantile Exchange (CME), Sony (SNE) and First Solar (FSLR).

Cramer was bearish on Volaris (VLRS), Endocyte (ECYT), eBay (EBAY), SunEdison (SUNE) and Questcor Pharmaceuticals (QCOR).

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 17,122.01 +15.31 0.09%
S&P 500 2,000.12 +0.10 0.00%
NASDAQ 4,569.6210 -1.0160 -0.02%

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