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) -- "In this environment, you can't bank on higher multiples," a down beat Jim Cramer told the viewers of his "Mad Money" TV show Monday.

Have stocks "become too cheap?" Cramer's reply was a decisive "no."

Cramer said it's true that stocks in the

S&P 500

are trading at just 12.7 times their earnings, well below their historical five-year average of 14.2 times earnings. But he said they're lower for a reason, and that reason is Washington.

"We just can't pay up for earnings that are under attack," Cramer told viewers. He said with health care reforms, financial regulations, and now a ban on offshore drilling, President Obama is only getting started. He said next on the Obama's agenda is cap and trade, an initiative that hurts the industrials and utilities, and card-check unionization, which hurts retail and the banks.

Cramer said the markets are having a hard time adjusting from the laissez faire days of the Bush administration to the hyper regulatory administration that is Obama.

He said only a handful of companies can transcend the assault, like those on his C.A.N.D.I.E.S. list of high growth stocks, and stocks like

General Mills

(GIS) - Get Report



(HSY) - Get Report


Campbell Soup

(CPB) - Get Report


Without super growth, he said, investors shouldn't pay up for earnings they can't count on, at least until November when the political winds may change.

Sweet Portfolio

There's only one thing that can propel a stock higher against the downward pressure of this market, Cramer told viewers, and that's earnings momentum. He said stocks whose earnings estimates are constantly being raised seem immune to the markets woes, while those without it, are stuck in the morass.

That's why Cramer said he's such a fan of his C.A.N.D.I.E.S. portfolio of high growth names. He said a year ago,


(AAPL) - Get Report

, a stock which he owns for his charitable trust,

Action Alerts PLUS, was expected to earn $7.40 a share. Current estimates are now for $16.14 a share.

Likewise with the other C.A.N.D.I.E.S. names, said Cramer, with estimates for

Chipotle Mexican Grill

(CMG) - Get Report

up 50% from a year ago,


(NFLX) - Get Report

up 40%,

Intuitive Surgical

(ISRG) - Get Report

up 39% and

(CRM) - Get Report

up 49%.

On the flipside, Cramer featured the once loved stock of

Research In Motion

( RIMM). Cramer said this company beat earnings by four cents a share, but has seem its shares continue to slide. The reason? No momentum. Cramer said share of RIMM are down 24% from their highs as the company's earnings momentum slows.

He said the big money is now worried whether RIMM will become another


(NOK) - Get Report



( MOT), two stocks like in the dust of Apple's iPhone.

Cramer said even on the company's conference call, analysts noted that with


(T) - Get Report

pumping the iPhone, and both


(VZ) - Get Report



(S) - Get Report

seemingly aligned with


TheStreet Recommends


(GOOG) - Get Report

Android phones, RIMM is left with little carrier support. Making matters worse, RIMM's buy-one, get-one promotion have most likely artificially propped up the company's numbers.

Rail Strength

"Things have gotten way to gloomy around here," Cramer told viewers, as he unveiled the first in a series of stocks where business is going from good, to even better. He said that railroad giant

Union Pacific

(UNP) - Get Report

is one company worth looking into.

Cramer noted that at a recent analyst meeting, Union Pacific CEO James Young said that carloads were up 17%, meaning the the company is shipping a lot more, not less. Making matters better, pricing was up 3% on their carloads, and the company is taking employees off furlough and putting them back to work.

Union Pacific is also taking unused locomotives out of storage and putting them to work as well, with 750 locomotives now back on the rails. And with all six of the company's main businesses showing signs of strength, Union Pacific has also purchased an additional 7,000 containers to help it grow.

Cramer said Union Pacific trades at 12.9 times earnings, but sports a 12% growth rate, making it an inexpensive stock with a 1.8% yield to boot.

Mad Mail

Cramer told a viewer that it's OK to put up to one-fifth of a portfolio into gold using stocks like the


(GLD) - Get Report


Cramer told another viewer that

Yum! Brands

(YUM) - Get Report

is a great story, especially in China, where the company is growing like gangbusters.

Cramer told a final viewer, and employee of

Sears Holding


, that with shares down sharply from their high of $120 a share, he'd consider investing in the company's stock purchase plan.

Lightning Round

Cramer was bullish on


(CSTR) - Get Report



(NICE) - Get Report


Clean Energy Fuels

(CLNE) - Get Report


Bristol-Myers Squibb

(BMY) - Get Report


Copano Energy

( CPNO).

He was bearish on

Best Buy

(BBY) - Get Report



( PALM),


(PFE) - 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 Apple.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 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, 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, 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 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, 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.