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NEW YORK (
) -- "A rally is a rally," Jim Cramer told the viewers of his "Mad Money" TV show Monday, "even if the wrong stocks are leading it."
He said that today's action proved that Friday's sell-off was not a time to panic, but a terrific buying opportunity.
Cramer said it became clear today that the government's case against
, a stock which he owns for his charitable trust,
Action Alerts PLUS, may have been overblown by the media, allowing the markets to rally. But, he said the stocks that led last week's rally before Friday, did not lead today.
Cramer explained that today's rally was propelled by the recession stocks, companies that investors flock to when they're concerned with a slowdown, not a recovery. He said that's why stocks like
Johnson & Johnson
Procter & Gamble
did so well today.
But Cramer said he's a buyer, not a seller, of this market, regardless of who's leading the charge. He said when companies like
report a monster good quarter, it's hard to ignore the facts that the economy is indeed getting better. He reiterated his buy on Citigroup, saying that the stock should now be able to clear $5 a share.
Cramer said perhaps the only thing that can stifle this market is what he called the "limbo stick" problem, in which it might be difficult for companies this week to top last week's great earnings. But while that may stymie some stocks, Cramer said he expects the market overall to resume its upward trajectory.
A Safe Syringe
In the "Executive Decision" segment, Cramer spoke with Alan Shortall, CEO of
, maker of clinical safety syringes. Cramer panned the stock on April 9, but welcomed Shortall to the show to prove him wrong.
Shortall said there are over 3 million needle injuries around the world every year, and his company's patented safety syringe has validated technology to reduce those injuries. He demonstrated how Unilife's syringe contains a retractable needle, thereby eliminating the possibility of injuries.
Shortall said that there are over 2.5 billion pre-filled syringed produced every year, and Unilife is on track ramp up production to 800 to 900 million units per year in just the next five to six years. He said Unilife's gross margins are also better than transitional syringes given that its partners absorb most of the marketing costs.
When asked about the company's volatile share price when it came public, Shortall explained that due to a glitch in the IPO, some of the company's Australian shares did not transfer correctly to the NASDAQ, causing a shortage, and a spike in the share price.
After hearing Shortall's case, and seeing the Unilife's products first hand, Cramer said he'd blessed the stock as a speculation, given that it still has a long way to go towards becoming a large medical device company, and its product offerings, while patented, are still narrow in scope.
Not all gaming stocks are created equal, Cramer told viewers. That's why when
pre-announced bad news last week, it created a buying opportunity for rival
Cramer explained that MGM's problems just don't translate to Wynn, as MGM derives 80% of it's revenue from the ailing Las Vegas, while Wynn only derives 37% of it's revenues from Vegas. Then there's MGM's embattled balance sheet, with over $13 billion in debt and only $2 billion in cash.
When it comes to gaming stocks, Cramer said China's Macau region is all that matters. But even here, MGM is faltering, with its 76-acre City Center property posting an $84 million loss.
In contrast, Wynn is set to open its second Macau casino this week, and already commands 16% market share in the region. Its balance sheet is stellar, said Cramer, with only $3.6 billion in debt, and $2 billion in cash. Then there's Wynn's management, which Cramer called hands down, the best in the business.
Since Cramer last recommended Wynn on July 9, 2009, its shares are up a whopping 108%. Cramer said it's not done yet.
In a special interview, Cramer welcomed author and fashion designer Daymond John to the show to discuss the importance of branding for business in America.
John explained that in his latest book, "The Brand Within," he details how most CEOs truly don't understand branding, mainly because they have too many other things to worry about. He said successful companies and celebrities can often be summed up in three words, like
"Just Do It" or Gov. Arnold Schwarzenegger's famous "I'll Be Back," catch phrase.
John said that in his mind, companies like
Research In Motion
( RIMM) are doing a terrible job managing their brands, while
sells hundreds of thousands of its products before the public even see them.
Turning to celebrities, John said that Tiger Woods' brand is all about playing the best game of golf in the world, and as long as he returns to that brand, his image will transcend recent indiscretions.
Cramer was bullish on
Bank of America
Chipotle Mexican Grill
He was bearish on
, and it's CEO Vikram Pandit, for delivering a stellar quarter that not only provided genuine revenue growth, but also a stronger balance sheet. "Citigroup is doing everything right."
-- Written by Scott Rutt in Washington D.C.
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At the time of publication, Cramer was long Goldman Sachs.
Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."
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