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: The Market's New Reality

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.

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 17,086.63 -26.91 -0.16%
S&P 500 1,987.01 +3.48 0.18%
NASDAQ 4,473.6970 +17.6810 0.40%

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