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NEW YORK (
) -- Chalk one up in the win column for individual investors, Jim Cramer told the viewers of his
TV show Monday, as he applauded the government for cracking down on what he coined "soft" insider trading.
Cramer explained that nearly 10 years ago the Securities and Exchange Commission banned the practice of "selective disclosure," where company executives would provide sensitive information to select money managers and hedge funds. Since that action however, Cramer said a new kind of insider trading has been occurring through third parties, or middlemen.
But that practice came to an end today, said Cramer, as these "consultants" will no longer be operating. The result? Cramer said that big money managers and hedge funds desperate to outperform the averages will have to play by the same rules as individual investors, and do their own homework based solely on public information.
Cramer said investors should feel better about the state of the markets. He said fund managers are no longer better off than the little guy, and individuals can beat the averages and the biggest of mutual funds. Cramer told viewers to stay focused on the mega-trends like the mobile Internet tsunami, the bull market in shoes and in healthy foods.
According to Cramer, these multi-year moves will lead investors to stocks like
, a stock which Cramer owns for his charitable trust,
Action Alerts PLUS, along with
. It will also turn up stocks like
Chipotle Mexican Grill
Cramer said couple these mega trends with a gold stock, a foreign stock and some dividend names, and even the smallest of investor will be winning like the pros.
Resonating With Customers
In a special interview, Cramer once again welcomed author and restauranteur Danny Meyer to the show to discuss the amazing success of Meyer's "Hospitality Index," a group of 17 stocks that have rallied 151% since Meyer recommended them on Feb. 2, 2009.
Meyer said that he recommended these stocks, back in the depths of the recession, because he knew that over the past 20 years, Americans have become hooked on quality and won't trade down to lesser items. He said companies that connect with their customers, and share in their values, will always do well.
In the case of Chipotle Mexican Grill, one of the index's shining stars, Meyer said the company serves "food with integrity," and its customers return time and time again because the food is good for them.
Turning to Meyer's own restaurants, he said that Shake Shack, his cheeseburger chain, is taking the unusual route of expanding internationally before it completes its U.S. expansion. Meyer said he plans to use what he learns overseas and bring those experiences back to the U.S.
While Shake Shack is enjoying success, Meyer said that his Indian spice restaurant, Tabla, will be closing on Dec. 30, the first time Meyer has had to close a restaurant. He said while Tabla is loved by many, the restaurant is simply too big, and its been a struggle to fill its seats.
Meyer also commented on his board seat at
, the Website for restaurant reservations. He said that while he was against Internet reservations initially, the concept adds value and hospitality for restaurant patrons and is catching on.
Cisco vs. Sysco
"Forget Cisco, we want Sysco," Cramer told viewers, as he pitted the tech giant
against the food distribution
to see which one is better for your portfolio.
Cramer is already on record as hating Cisco, a company that reported a huge disappointment when it last reported, with sales weak in three major areas. Cramer said Cisco's $10 billion stock buyback has not changed his mind, as the move creates no real value. He said he doesn't like stocks that are devoid of momentum, nor ones without any hope of a turnaround soon.
By contrast, Cramer said food distributor Sysco is worth looking into, as this supplier of frozen foods, dairy, meat, poultry, seafood, beverages and more to restaurants, schools and hospitals is a consistent earner with a 3.6% dividend to boot.
Cramer said with the restaurant stocks in bull-market mode, Sysco sales should be following suit any time now. Sysco derives 62% of its revenue from restaurants, he noted. Cramer said he's not worried about cost inflation, as many of Sysco's contracts pass those costs directly onto their customers.
Sysco is trading near its 52-week low, said Cramer, despite the company's 10% growth rate and the fact it has raised its dividend every year for the past four decades.
Cramer followed up on
, a stock that stumped him in an earlier Lightning Round. Cramer said this provider of integrated call center software has a great story, but is too hot to handle at current prices.
When asked why shares of
is ramping up ahead of a secondary offering, Cramer explained that as the company tells its story, people are getting excited and are buying ahead of the deal.
When asked to choose between
, two Action Alerts PLUS names, Cramer said while he believes strongly in gold, Alcoa has more room to run at the moment.
Finally, when asked about
, Cramer said the markets need more volume before this stock would become attractive
Cramer was bullish on
Kinder Morgan Energy Partners
He was bearish on
Cramer said the media will be all over the retail sector this week, predicting all sorts of doom and gloom. "They will be wrong," he said pointedly.
Cramer said with the rare exception of
, he heard nothing negative from any of the retailers this quarter. He said inventories are lean and the retailers are in better shape than they've been in years.
--Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer was long Apple, NovaGold, Alcoa.
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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