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
TheStreet Open House

Jim Cramer's 'Mad Money' Recap: Fear and Loathing on Wall Street

It's not as if the established players don't have the capital, Cramer noted. Facebook (FB) clearly had the capital for What'sApp and Google (GOOG) just bought an aerial drone company, of all things. So why aren't they snapping up GrubHub (GRUB) or Zoe's Kitchen (ZOES)?

Cramer said once these companies go public, their valuations simply get too high. Zillow (Z) could buy Trulia (TRLA), for example, and own the online real estate market in perpetuity, but now that Trulia is public that deal would be very costly.

That makes buying up companies pre-IPO the thing to do, Cramer concluded, which is why the fact it's not happening should raise eyebrows.

Off the Tape

In his "Off The Tape" segment, Cramer sat down with Daymond John, founder and CEO of the privately held FUBU, as well as co-host of Shark Tank and the self-proclaimed "king of branding." Back in April 2010, John created his "Lifestyle Brand Index," a collection of stocks that is now up 92%, beating the S&P 500 and its growth of 54%.

John said that Samsung (SSNLF) still has the smart phone buzz and Apple's (AAPL) iPhone is still lagging behind. He was still bullish on both Under Armour (UA) and Facebook, two stocks in his 2010 index.

John added two new names to his index, Walgreens (WAG) and Tesla Motors (TSLA), and also touted AOL (AOL) and Netflix (NFLX) as the content delivery systems of the future.

Finally, John and Cramer were both bullish on Whole Foods Markets (WFM) and Starbucks (SBUX).

Cramer's Playbook

For the next installment of "Cramer's Playbook," Cramer once again helps investors build a solid financial footing, this time by answering the question of whether or not to use stop-loss orders to protect yourself from big market selloffs.

Cramer said he's not a fan of stop-loss orders -- which automatically sell a stock if certain conditions are met -- for regular investors. He said home gamers should be longer-term investors and not traders worried about the day-to-day action in the markets.

One of the hardest lessons for beginning investors to master is not worrying about selloffs and actually embracing them. Selloffs are nothing more than stocks being put on sale, he said, and are a normal part of a healthy market. Investors should love market declines and use them as buying opportunities.

2 of 3

Select the service that is right for you!

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 17,031.14 +43.63 0.26%
S&P 500 1,984.13 -1.41 -0.07%
NASDAQ 4,518.9020 -48.6960 -1.07%

Brokerage Partners

Rates from

  • 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