This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Jim Cramer's 'Mad Money' Recap: Here's Why the Bears Were Dead Wrong

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

NEW YORK ( TheStreet) -- You'll never hear an apology from the bears when they're wrong, Jim Cramer told his Mad Money viewers Thursday as he called out all those who have been predicting doom and gloom as the Federal Reserve ends its bond buying program.

Cramer said the critics of the Fed's quantitative easing had a laundry list of negatives that were supposed to happen, including runaway inflation, soaring interest rates and plummeting stock prices, to name a few. But in reality, the bears have been dead wrong.

Cramer said now that the Fed's stimulus is behind us, our GDP grew at a respectable 3.5%, with almost no signs of inflation. As for interest rates, they remain super low, making it a great time to buy a home or finance a car or truck. What about those plummeting stock prices? Most stocks seem to be doing just fine.

Must Read: 7 Stocks Warren Buffett Is Selling in 2014

Cramer went on record praising the Fed for a job well done. Thanks to its keen eye on the economy, he said it's a great time to buy technology stocks including Apple (AAPL) , a stock he owns for his charitable trust, Action Alerts PLUS. Cramer also gave the nod to the biotechs, reiterating buys on Celgene (CELG) , Regeneron (REGN) , Gilead Sciences (GILD) and Biogen Idec (BIIB) .

So Cramer said while the bears will never admit they are wrong, mainly because they're still hoping they're right, the rest of us should stay the course and keep buying into weakness.

Executive Decision: Strauss Zelnick

In his first "Executive Decision" segment, Cramer sat down with Strauss Zelnick, chairman and CEO of Take-Two Interactive (TTWO) , which last night posted a 44-cents-a-share loss, which was better than analysts were expecting, along with higher revenue and a guidance bump for 2015. That news sent shares up 11% on the day and a full 46% since Cramer first recommend the stock back in January.

Zelnick said that while many analysts have traditionally felt the video game business is all about generating hit after hit, Take-Two actually derives 30% of its revenue from its expansive back-catalog of games, music and merchandise.

Zelnick said he has high hopes for the next installment of the Grand Theft Auto franchise, and expects the current game console upgrade cycle to be just as exciting as the last. He also noted the broadening appeal of gaming, with 48% of Take-Two's customers now being women.

Finally, when asked about the company's growing balance sheet, Zelnick said Take-Two now has enough cash to make acquisitions as well as invest in the existing business and still have money to buy back stock.

Cramer said that he remains a big fan of Take-Two.

Must Read: What the Strong GDP Report Is Really Saying About the Economy

Best of Breed Stocks

Best of breed stocks don't stay down for long, Cramer reminded viewers as he highlighted just a few names from the market's recent dip that are now well on their way towards a recovery.

Cramer said you never know when Bristol-Myers Squibb (BMY) will have positive things to say about its anti-cancer drugs, but when tit does, you get a 9% pop like we saw today.

Then there's Chipotle Mexican Grill (CMG) , which worried investors with "cautious guidance" but now is well on its way back to where it was before it reported.

Other Cramer faves include Honeywell (HON) and 3M (MMM) , companies that innovate regardless of the economic environment. He was also bullish on Action Alerts PLUS names Facebook (FB)  and Starbucks (SBUX) .

Executive Decision: James Foster

In his second "Executive Decision" segment, Cramer spoke with James Foster, chairman, president and CEO of Charles River Labs (CRL) , which just delivered a 6-cents-a-share earnings beat, sending shares up 2.6%. Shares of Charles River are up 7% since Cramer last checked in this past August.

Foster touted his company's acquisition in April of ChanTest as being a big driver of growth for Charles River going forward. He explained that ChanTest allows drug targets to be discovered without the need for animals. Once these targets are identified, drug companies can hone in on these areas faster. Foster called the acquisition a wonderful addition to their portfolio of services.

Foster also commented on the recent Ebola outbreak, saying Charles River did help in testing some of the drugs that are now being used to treat the disease.

Cramer said Charles River had a great quarter and made a great acquisition. With so many drugs needing their help in discovery and development, owning this stock makes a lot of sense.

Must Read: Why Nintendo and Microsoft Are Diving Head-First Into the Health-Tech Business

Lightning Round

In the Lightning Round, Cramer was bullish on Wabash National (WNC) , Schlumberger (SLB) , MGM Resorts (MGM) , Alliant Techsystems (ATK) , Energy Transfer Partners (ETP) and United Parcel Service (UPS) .

Cramer was bearish on Armour Residential (ARR) , Westport Innovations (WPRT) , Melco PBL Entertainment (MPEL) , Diamond Offshore (DO) and YRC Worldwide (YRCW) .

Executive Decision: Mike McNamara

In a third "Executive Decision" segment, Cramer sat down with Mike McNamara, CEO of Flextronics (FLEX) , a stock that trades at just nine times earnings despite just delivering a 2-cents-a-share earnings beat and having a monster stock buyback program.

McNamara said if there's one thing Flextronics has gotten really good at it's generating a lot of free cash flow. That's how the company has been able to continue buying back so much of their own stock over time.

When asked about the company's exceedingly strong results, McNamara noted that the windfalls came from execution. As a contract manufacturer, if you complete more items you get paid faster, and that's what happened this quarter.

With Flextronics having its hand in many industries -- from medical devices to automotive, aerospace and technology -- McNamara said he's seeing the global economy as stable and not falling apart.

Finally, when asked about the wearable device market in particular, McNamara noted that Flextronics currently makes more wearable devices than anyone in the world and is rapidly streamlining operations to make even more items as fitness trackers and smart watches go mainstream.

Cramer said he likes all of the industries in which Flextronics participates and continues his recommendation of the stock.

Must Read: Retail Investors Flock to Derivatives for Income and Safety

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

-- Written by Scott Rutt in Washington, D.C.

To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, FB and SBUX.

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!
DOW 17,195.42 +221.11 1.30%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,566.1380 +16.9120 0.37%

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