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Jim Cramer's 'Mad Money' Recap: The Market's New Reality

Stocks in this article: AAPL FB PPG VRX XLI URI TYC MU UA MTB XCO EOG NVAX PKI SIVB WFC AGN MDLZ PEP IR

Cramer said he remains critical of Bill Ackman's and Valeant Pharmaceuticals' (VRX) proposed bid for Allergan (AGN), as he fears Valeant will destroy the rich research and development program for which Allergan is known. But, he said, there's no denying the deal has been a huge win for Allergan shareholders thus far.

Whether it's Mondelez (MDLZ), Pepsico (PEP), Ingersoll Rand (IR) or, more recently, Carl Icahn's public battle with Apple, Cramer said that in the end countless companies and their shareholders have been helped by these activists.

What's Up With Micron?

What's happening with Micron Technologies (MU)? Cramer said this memory chip supplier has followed the same pattern for decades. When supply is tight the stock roars, but when excess manufacturing capacity comes online the stock gets crushed.

But with Micron now up 20% for the year, this time things might be different.

Cramer said this time the analysts are sticking by Micron, with 19 buy recommendations, 11 holds and only four sells. Why the change? In a word, consolidation. Cramer said there are only three major players left in the DRAM market, which still accounts for 70% of Micron's sales. With the steep decline in PC sales finally moderating, there's a good chance that Micron can increase its margins.

Then there's Micron's NAND flash business, which makes the memory needed for smartphones and mobile devices. Here, Micron is the third-largest player in a rapidly expanding market.

That's why Cramer said he's willing to bless Micron for speculation only because the stock is still not for the faint of heart. This time, he concluded, the rally in Micron may last a lot longer than usual.

Executive Decision: Chuck Bunch

For his "Executive Decision" segment, Cramer spoke with Chuck Bunch, chairman and CEO of PPG (PPG), the chemicals and coatings maker that just delivered a 10-cents-a-share earnings beat on a 17% rise in revenue along with a $2 billion stock buyback program and a 10% hike in the company's dividend. Shares of PPG are up 400% since Cramer first spoke with Bunch in June 2009.

Bunch painted a positive picture of PPG, saying that volumes in Europe were up for the first time in 10 quarters. He said PPG is seeing a broad-based recovery in Europe that includes a lot more than just automotive sales.

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