This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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 2012 Stock Market All Over Again

Stocks in this article: TWTR GNC VSI UA GPRO KMI PAA D TSLA NFLX AAPL YELP HD M KR CMB DIS T VZ FMC DOW LVS MGM ACHN

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.


NEW YORK ( TheStreet) -- It's time to dust off your 2012 game plan, Jim Cramer said on Mad Money Tuesday. The markets are once again divided into two groups -- companies that are impacted by European events and those that aren't.

Yes, it's 2012 all over again, Cramer told viewers. Investors are dumping the industrial and technology stocks in favor of anything domestic, including health care, transportation, restaurants and entertainment. With the U.S. dollar continuing to strengthen, the banks and the consumer packaged goods stocks continue to slide, but names like Twitter (TWTR) , a stock he owns for his charitable trust, Action Alerts PLUS, GoPro (GPRO) , Tesla Motors (TSLA) and Netflix (NFLX) will likely be go-to names for money managers for the rest of the year.

Read More: 7 Stocks Warren Buffett Is Selling in 2014

Cramer said he's also still a fan of Apple (AAPL) , another AAP holding, and Yelp (YELP) , as well as Home Depot (HD) and Macy's (M) .

What else is on Cramer's buy list? He said both Kroger (KR) and Chipotle Mexican Grill (CMG) are, along with health care, biotech, railroads, liquor and entertainment stocks like Walt Disney (DIS) .

Focus on domestic strength, Cramer concluded, and protect your gains by avoiding anything with exposure to Europe.

Stocking Up on Vitamins

There are too many bricks and mortar stores in America, Cramer told viewers, which is why the markets have been rewarding companies making acquisitions, merging to take out their competition and preserve their growth and margins.

That's why Cramer said he's a big fan of a recent report suggesting GNC Holdings (GNC) will acquire its rival, Vitamin Shoppe (VSI) . He said these two chains are suffering at the hand of intense competition, but a combined company would indeed be a thing of beauty.

Cramer said according to his own research, a full 100% of Vitamin Shoppe locations are within five miles of a GNC location. By shutting down half of those locations, a combined company could cut costs in half and still preserve almost all their sales. Even just merging back-end operations would be a huge win for GNC.

Read More: Big Three U.S. Airlines and Labor Get First Round Win Over Norwegian Air

Vitamin Shoppe shares trade at just 15.4 times earnings, Cramer noted, so even offering a 35% premium would still be a steal for GNC. Projecting $140 million in synergies, Cramer said the combined company would see a huge 40% increase in earnings.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

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