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NEW YORK (
) -- "It's time to stop worrying and love the bull," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday.
He said that ever since the market bottom in March in 2009, worrying has been just plain wrong. "The time to worry was last year," he said, "but now it's time to buy."
Cramer said the bears still seem to have an endless stream of things they're worried about, whether its
iPad sales, Treasury auctions,
statements, or a pending collapse in commercial real estate. Cramer said all of these worries just don't matter.
Cramer said what does matter is that the markets have only had four down days in the last month. What does matter is that insurance stocks like
are showing remarkable strength.
Cramer said it's also remarkable that LED maker
was able to rally seven points yesterday on the strength of consumer TVs. And that regional banks, like
are also on the move.
Cramer said that real estate trusts that deal in commercial real estate are also strong, as evidence by
Federal Realty Trust
. He said these stocks have been mutilated by fear and went down too far, but now there's just no stopping them.
Likewise with health care, and minerals, and the industrials, said Cramer. All of these sectors were riddled with fear, but now just can't be kept down. He told viewers that they're allowed to be afraid but they just shouldn't act on it.
Continuing his series on the economic recovery in California, Cramer went out on a limb and recommended, of all things, a home builder. He said that with housing prices stabilizing, the home builders are back to work and are quietly returning to profitability.
Cramer said he looked for home builders with the biggest exposure to California and came across
, with 38% of its homes in the state, and
( LNR) with 25%, but he said the speculative
took the cake with over 56% of its homes residing in California.
Cramer said that Standard Pacific is decidedly the most speculative of the three, with the company getting hit hard in not only California, but also Florida and Arizona. But, he said, the company has now turned itself around, pushing through price increases on its homes and restoring its gross margins to 20%.
Cramer said Standard Pacific is all about growth, with the company buying $117 million in land, mostly in California, at rock bottom prices. Of the seven analysts covering the company, Cramer said that only two rate it a buy, leaving lots of room for upgrades.
Off the Charts
In the "Off The Charts" segment, Cramer went head to head with colleague Dan Fitzpatrick over the chart of
, an aircraft component maker that acquired the privately held Vought Aircraft on March 23 for $1.44 billion.
According to Fitzpatrick, the weekly chart of Triumph shows that the stock broke through its upper Bollinger band on the news of the merger, only to pull back, which is worrisome.
He said the daily chart also confirms that the stock broke through its prior resistance on the news, only to sharply reverse course. Fitzpatrick said he'd be a buyer of Triumph only if it retreated to its 50-day moving average around $59 a share.
Cramer said Fitzpatrick is wrong. Given the strength of Triumph's main customer,
, and the strength of this acquisition, the company may not ever see $59 a share again, he said.
Cramer said that he'd be a buyer up to $69 a share, and gave the company a price target of $90.
Cramer said investors shouldn't fight the aerospace cycle, which is not set to peak until 2014. He said that Triumph's acquisition will immediately add $1 a share in earnings for the company, with even more further out. He noted that even at current levels, the Triumph trades at just 13 times its 2011 earnings, which is far too cheap for the new, combined company.
Natural Food Play
In the "Executive Decision" segment, Cramer sat down with Irwin Simon, chairman, president and CEO of
Hain Celestial Group
, a stock Cramer last recommended on Sept. 18. Since that recommendation, Hain shares have been languishing amidst what analysts characterized as a lackluster quarterly results.
Simon said that the analysts are free to write what they will, but from his perspective, earnings were up 35% in the last quarter, with free cash up by $60 million. He said that healthy eating is not a trend or a fad that's going away any time soon.
Simon said that during the worst part of the recession, Hain did see some consumers trading down to lesser expensive brands, but those consumers are now returning to the company's superior products and all natural ingredients.
Simon highlighted the company's success with its Earth's Best baby food line, which turned from a $14 million brand in 1999 to a $150 million brand today. He said that Hain is not spread too thinly amongt its brands, but is evolving into an all-natural food powerhouse. Simon said that only Hain is creating food for today's consumer.
Cramer agreed with Simon's outlook, adding Hain still tells a convincing story.
Cramer was bullish on
Research In Motion
Carrizo Oil & Gas
-- Written by Scott Rutt in Washington D.C.
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At the time of publication, Cramer was long Apple.
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