Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
NEW YORK (
) -- Give us just a glint of hope that China may be recovering and the markets will take up every stock that's even remotely related, Jim Cramer said on
Tuesday. He spoke on that country's softer-than-expected inflation numbers as well as a positive outlook from
Cramer said that for weeks now the markets have been unable to rally the machinery and materials stocks, as they depend on a strong China for growth. But thanks to some softer-than-expected inflation numbers, these stocks came roaring back to life on the hopes that China may have finally tamed its inflation beast. If that happens, said Cramer, then all will be forgiven in the market's eyes.
Then there's aluminum maker Alcoa, a company that provides one of the best outlooks on the global economy. Cramer said that Alcoa was also positive on China, saying the country is seeing strong demand for cars and trucks, as well as for commercial construction and aircraft. China also used three billion more aluminum cans.
That was enough to send the
iPath Dow Jones Copper ETF
ETF higher, and should be great news for
, a stock Cramer owns for his charitable trust,
Action Alerts PLUS.
The rally should extend to truck makers including
, said Cramer, as well as for oil stocks such as
and casinos including
Cramer said even the stalled tech rally may be helped by a renewed growth in China. Shares of
, another Action Alerts PLUS holding, can't go down forever, Cramer noted, and does appear to be at least trying to form a bottom.
Executive Decision: Alan Wilson
In the "Executive Decision" segment, Cramer sat down with Alan Wilson, chairman, president and CEO of spice maker
, a stock with a 1.9% yield that's delivered an 818% gain over the past 20 years, including reinvested dividends, twice that of the
Wilson said McCormick is the flavor behind many great food products and restaurants, and his company is constantly working toward keeping the category fresh with new products and new flavors. He said spices are a seasonal item, with consumers looking for holiday spices in the winter and grilling spices in the summer, making for a dynamic business that's always changing.
McCormick is also an international story, said Wilson, with his company investing in emerging markets around the world to build its business. He said nearly one-third of all new products are also a result a new technology with improvements in both flavors and efficiencies.
When asked about the company's product strategy, Wilson said McCormick offers a broad mix of items from private label to branded items to gourmet products for every type of customer.
Cramer said McCormick is a great growth story and he continues to recommend owning it.
Merck on the Mend
For the next installment of his Big Pharma series, Cramer highlighted
, an Action Alerts PLUS holding that has lagged the industry and is up only 6% so far this year.
Cramer said that while Merck trades at just 12 times earnings, compared to an industry average of 14 times earnings, the company is actually in excellent shape with a broad pipeline of new drugs and a 3.8% yield. While many Big Pharma names have suffered the wrath of the "patent cliff," Merck now has the least exposure to generic competition.
Among the many positives in Merck's favor is the company's 2009 acquisition of Schering-Plough and its growing animal health business, which racked up $3.4 billion in sales last year. Merck also has a strong diabetes franchise as well as a vaccine business worth $5.8 billion in sales.
Merck's strong pipeline of new drugs is also a plus, said Cramer. The company should have no fewer than five drugs ready for approval this year alone. He said that while Merck may not have many home runs in its portfolio, it's a solid base hitter that can deliver over and over again.
Cramer concluded by saying that Merck should easily be a $60 stock.
In the Lightning Round, Cramer was bullish on
Sirius XM Radio
Enbridge Energy Partners
Cramer was bearish on
Off the Charts
In the "Off The Charts" segment, Cramer went head to head with colleague Bob Lang over the outlook for the online travel sector, pitting the technicals against the fundamentals to see which travel stocks make the grade.
remains the "best of breed" player, and Lang's research agreed. Lang noted that after a giant move since January, shares have been consolidating but still holding above their uptrend line. The MACD momentum indicator is signaling a powerful buy signal, meaning this stock is poised for another move higher.
Lang saw similar patterns in
, noting this stock has a solid floor of support at $60. The MACD is also signaling a buy signal and the Williams oscillator confirms strength in Expedia as well.
, a stock that has tripled since its November lows on strong volume. The stock stalled in mid-March, but also seems poised to follow the group higher. Cramer said he's not a fan of Orbitz and would prefer Priceline or Expedia over this distant-third player.
, the only company of the group that relies on advertising rather than booking fees. Cramer said while this stock has support at its 50-day moving average, he's not a fan given that advertising rates are on the decline.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer opined on the continued collapse of
. He said investors need to steer clear of Penney because the retailer could indeed go away entirely, and owning it is simply not worth the risk.
That's good news for
, said Cramer, as that chain will likely pick up most of Penney's business. He also likes
, an Action Alerts PLUS name.
seems to have lost its way and will not be a big gainer of customers fleeing Penney.
To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC
-- Written by Scott Rutt in Washington, D.C.
To email Scott about this article, click here:
Follow Scott on Twitter
or get updates on Facebook,
At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, MRK, TJX and VALE.
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."
None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.
Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.