Cramer's 'Mad Money' Recap: Buying Into Fear (Final)

Cramer debunked the arguments of the bears and offered a long list of stocks to buy in a down market.
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NEW YORK (

TheStreet

) -- "Try to ignore the bears that are spewing out the negatives," Jim Cramer told the viewers of his "Mad Money" TV show.

Cramer told viewers that despite the media's depiction, we are not on the eve of destruction, and in fact, there are even still some opportunities out there.

Cramer said the bears' arguments for why the markets should be dramatically lower are endless, from a government-mandated slowdown in China, to debt woes in Europe, to a mining tax in Australia.

The list continues, he said, to include the price of oil, banking regulation, fears of terrorism and even the investigation into

Apple

's

(AAPL) - Get Report

business practices. "We have to wait until all these fears are though," said Cramer, but that doesn't mean there aren't opportunities out there.

Cramer said the drug companies, including

Abbott Labs

(ABT) - Get Report

, a stock which he owns for his charitable trust,

Action Alerts PLUS, are very cheap at the moment. He said food stocks, like

General Mills

(GIS) - Get Report

and

Perrigo

(PRGO) - Get Report

are also ripe for the picking.

High-Yielding Stock Ideas

Top 10 Dow Dividend Stocks

Cramer also gave the nod to high-yielding dividend stocks like

Inergy

(NRGY)

and natural gas plays like

National Fuel Gas

(NFG) - Get Report

. And he liked utilities such as

Dominion Resources

(D) - Get Report

which is seeing an uptick in demand.

Cramer's list of opportunities continued to include

Nike

(NKE) - Get Report

and

Starwood Hotels

(HOT)

, two recently featured companies on "Mad Money," along with retailers

Wal-Mart

(WMT) - Get Report

and

Costco

(COST) - Get Report

.

Finally, Cramer said investors can speculate on names like

Sprint

(S) - Get Report

or

Motorola

(MOT)

, or even on some big, beaten down industrialslike

3M

(MMM) - Get Report

or

Boeing

(BA) - Get Report

.

Off the Charts

Cramer went head to head with colleague Dan Fitzpatrick over the chart of

Weyerhaeuser

(WY) - Get Report

, a stock which Cramer owns for his charitable trust,

Action Alerts PLUS.

According to Fitzpatrick, Weyerhaeuser has already made its move, and is out of fuel, after completing a reverse head and shoulders pattern from 2008 through mid 2009. Fitzpatrick didn't like the stock and gave it a price target of only $54 a share.

But Cramer said Fitzpatrick is wrong, arguing Weyerhaeuer has plenty of room to run, as evidenced by the company's most recent quarter. While Weyerhaeuser reported a seven-cent-a-share loss for the quarter, that was a full 18 cents better than Wall Street was expecting.

The company saw strength in all of its businesses, with its timberland assets outperforming them all. Weyerhaeuer saw a 11.3% increase in revenue, stronger pricing and better costs throughout the quarter.

Cramer said as housing prices continue to bottom, Weyerhaeuser will be the natural way to play the recovery. Better still, Weyerhaeuser will be converting itself into a REIT later this year, a move that made shareholders of similar companies a lot of money, he said.

Pizza Growth Story

In the "Executive Decision" segment, Cramer spoke with Patrick Doyle, president and CEO of

Domino's Pizza

(DPZ) - Get Report

, a stock that received a 13% haircut after it reported 35 cents a share in earnings, two cents better than expections, on revenue growth of 18%.

Doyle said Domino's had a stellar quarter thanks to the company's introduction of new pizzas and its associated ad campaign billing its old pizza as "tasting like cardboard." Doyle said that 75% of the people who tried Domino's new pizzas loved them.

Doyle also said Domino's is seeing growth in its online business, where 25% of the company's orders now originate. He said based on the number of transactions, Domino's is now the fourth largest e-commerce site on the web.

Also on the list of positives, Domino's international growth. Doyle said he was present for the opening of the company's 300th store in India, a country where he said they could easily open 700 or more.

Given Domino's renewed growth, Doyle said issues such as commodity costs, such as the price of cheese, are no longer a factor.

Cramer said he agreed with Doyle's outlook, and continued to recommend the stock, despite its 36% rise since his last recommendation on Jan. 13.

Avoiding Industry Pitfalls

Cramer sat down with Russell Goldsmith, president and CEO of

City National

(CYN)

, a bank that's up over 9% since Cramer recommended it just last month.

Goldsmith said that over the past 10 years, City National has only seen two defaults in its mortgages. He said his bank avoided the problems of other banks by focusing only on customers whom they had relationships with, rather than pursuing brokered loans from all over the country.

Goldsmith also said that the jumbo loan, which caused so many banks big problems, has been the "bread and butter" of City National's business. He said City has no exposure to sub-prime loans.

When asked about City National's recent FDIC assisted acquisitions, Goldsmith said the banks it acquired were a good geographic fit for the company, and the FDIC helps broker the deals so that it works well for the acquiring bank.

Finally, when asked about the company's move into the cut throat market of New York City, Goldsmith explained that City National started a private banking business in 2002, and that business is now a $1 billion bank. He said that 40% of all broadway shows now bank with City National, thanks to their focus on their customers. "It's all word of mouth," Goldsmith explained.

Cramer continued to recommend City Nationals' stock.

Lightning Round

Cramer was bullish on

Schlumberger

(SLB) - Get Report

,

Weatherford International

(WFT) - Get Report

,

Art Technology Group

(ARTG)

,

Akamai Technologies

(AKAM) - Get Report

,

General Mills

(GIS) - Get Report

and

Baidu.com

(BIDU) - Get Report

.

He was bearish on

Transocean

(RIG) - Get Report

,

Rosetta Resources

(ROSE) - Get Report

,

ConAgra Foods

(CAG) - Get Report

,

Bucyrus International

(BUCY)

and

Google

(GOOG) - Get Report

.

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

To watch replays of Cramer's video segments, visit the Mad Moneypage on CNBC

.

Want more Cramer? Check out Jim's rules and commandments forinvesting from his latest book by

clicking here.

For more of Cramer's insights during the Lightning Round, clickhere

.

At the time of publication, Cramer was long Abbott Labs, Weyerhaeuer, Weatherford International.

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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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.