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: Has the Tech Bubble Already Popped?

Lodging companies use revenue per available room, or RevPAR, to analyze their business. RevPAR looks to be accelerating, and when that happens, hotel stocks go higher.

While the whole industry looks promising, Cramer decided to rank the four big hotel stocks you hear the most about: Hilton (HLT), Hyatt (H), Marriott (MAR) and Starwood (HOT).

Starwood received Cramer's top spot. The company manages 1,200 hotels in nearly 100 countries through its various brands. Under the leadership of CEO Frits van Paasschen, a frequent Mad Money guest, Starwood has pioneered the "asset light" business model, recognizing that its true expertise lies in running hotels, not in owning and operating real estate.

The company has about half of its business overseas, and has a track record of transcending international weakness, particularly relevant at a time when emerging markets appear to be struggling. Starwood closed Monday at $79.95 a share, up 3.71% in the past three months.

Cramer hoped to place Marriott, a "truly fabulous operator," next of his top four. However, the downside to being an elite operator is that you don't have much room to improve.

Cramer tapped Hilton for his #2 slot. Hilton is up 4.8% over the last three months even though it is an inferior company to Marriott. With over 4,100 hotels, Hilton is the largest lodging company on Earth. Hilton has the market share, and there's plenty of room for it to improve. That's what Wall Street is seeking.

Marriott is up 20.0% for the year to date, one of many reasons Cramer was not crazy about it. The company has nearly 4,000 properties under management, a ton of cash and a "terrific" buyback program.

Hyatt brings up the rear, in Cramer's mind. It is the smallest of the group and pretty expensive now that it's up almost 17.6% over the last three months.

Tortoise vs. Hare

"We've seen some staggering losses from some recent hottest stars," Cramer said. And so he decided to take a look at McDonald's (MCD) vs. Chipotle Mexican Grill (CMG) in his modern-day retelling of The Tortoise and the Hare.

Until a couple of months ago, Cramer said, Chipotle's turbocharged growth was exactly what this market wanted. By early this March, its stock had climbed to $622. In the last three months, it is down more than 6.5%, closing Monday's trading at $510.

Chipotle is a textbook growth stock, and while that may be the future of food, that is not what's controlling its stock price.

As momentum stocks are falling, McDonald's has been climbing, closing Monday at nearly $103 per share, up 6% year-to-date. That's not about the food, Cramer said. It's about the dividend.

Executive Decision: Mark Bristow

Cramer still believes it is worth having some gold in your portfolio, even if only as a hedge against inflation and globe chaos.

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 16,979.13 +59.54 0.35%
S&P 500 1,986.51 +4.91 0.25%
NASDAQ 4,526.4820 -1.0320 -0.02%

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