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Jim Cramer's 'Mad Money' Recap: Bubbles vs. Valuation

Cramer said the production growth play cuts both ways, however. When Gulfport Energy (GPOR) lowered guidance by 30% thanks to the unpredictable Utica shale region, shares immediately plummeted 18%.

Executive Decision: Jim Hughes

For his "Executive Decision" segment, Cramer sat down with Jim Hughes, CEO of First Solar (FSLR - Get Report), which just delivered a monster quarter but still trades like a value stock at just 14 times earnings.

Hughes said First Solar continues to have a robust business model with long sales cycles and a huge backlog of business that affords it excellent visibility into the future. He said while the price of solar energy continues to fall, other fuels continue to rise, making solar even more economical.

Hughes continued that even with government subsidies scaling back or ending, solar remains a compelling option for more and more places around the world.

When asked whether his company will compete in the residential solar space, Hughes explained the market for utility-scale projects is so big the company will continue to focus on that segment of the market.

Cramer called First Solar a solar stock that offers deep value for investors.

Am I Diversified?

In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.

The first portfolio included Facebook (FB), Gilead Sciences (GILD), Bank of America (BAC), Merrimack Pharmaceuticals (MACK) and iRobot (IRBT).

Cramer said this portfolio has too much speculation with iRobot and Merrimack. He suggested adding General Electric (GE).

The second portfolio's top holdings included Enterprise Product Partners (EPD), Apple (AAPL), Honeywell (HON), Johnson & Johnson (JNJ) and NuStar Energy (NS).

Cramer identified two of a kind with NuStar and Enterprise. He suggested selling NuStar and adding a retailer like Costco (COST).

The third portfolio had Alcatel Lucent (ALU), Alcoa (AA), General Electric, Rite-Aid (RAD) and Xilinx (XLNX) as its top five stocks.

Cramer said Alcatel and Xilinx were too similar and suggested adding a drug stock like Bristol-Myers Squibb (BMY).

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