Cramer's 'Mad Money Recap': Foster Wheeler: Setting the Record Straight - TheStreet

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"Sometimes companies shoot themselves in the foot," Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

He said that's what happened to

Foster Wheeler

(FWLT)

, a stock he owns for his charitable trust

Action Alerts PLUS, when it reported its earnings earlier Wednesday.

Cramer's been a long-term supporter of Foster Wheeler, which has risen 92% since he recommended it on April 16, 2007.

Cramer Interviews Foster-Wheeler CEO

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According to Cramer, Foster posted stellar earnings in the past quarter. The company's earnings per share came in at 85 cents, 12 cents above consensus estimates. Revenues rose to $1.8 billion, up from $1.4 billion in the previous quarter. Most impressive was Foster's backlog, which now totals $8.9 billion, almost equal to that of the company's entire marketcap.

But all that took a back seat when Ray Milchovich, the company's CEO, mentioned the company's weak North American power business during the conference call. Cramer welcomed Milchovich to the show to clarify his remarks.

Milchovich expressed his frustration about the conference call because just about every question focused on Foster's power business, which accounts for just 9% of the company's revenue.

He said that all of Foster's other businesses, including LNG, refining, chemicals and petrochemicals, have been and continue to be "extremely robust." He noted the company's strong bookings in every division.

Milchovich also said that he does not see any U.S. energy solution that doesn't include coal as a baseline energy source. He also said the company's weak U.S. power business represents only "delays" in what he sees as a still growing business.

Cramer said Milchovich has never steered him wrong, and he doesn't feel Foster Wheeler is falling apart in the least.

Getting Whiffed on Schering-Plough

During this week, Cramer has talked about some of his blown calls and used them as a vehicle to help viewers learn from his mistakes. On this show, he talked about how he missed the top in

Schering-Plough

( SGP), a stock he also owns for

Action Alerts PLUS, on May 14, 2007.

At the time, Cramer was up almost 100% with his recommendations of Schering and his support of the company's CEO, Fred Hassan. Cramer said he blindly reiterated his buy on the stock on May 14 at $31.95 a share.

"Since then, this stock has been hammered and hammered mercilessly," he said. At its low, Schering was trading at just $13 a share after negative press reports emerged about the company's anti-cholesterol drug Vytorin.

Cramer explained that after the news broke, he mistakenly assumed the market wouldn't overreact to the news. Yet day after day, the stock just kept going lower.

Cramer said he also underestimated the power of

The New York Times

and its extensive coverage of the controversy.

Cramer said he also gave too much credit to Hassan, who purchased $2 million of Schering's stock at $18 a share just days after the news broke.

He said he never considered just how much the market and the media would over-react to this news.

"But my real mistake was greed," said Cramer. Despite recommending Schering at $16, he did not take a profit when the stock hit $31. Cramer said that rule No. 1 in his book is and always will be "bulls make money, bears make money, but pigs get slaughtered."

Going forward, Cramer said Schering-Plough is a buy at these prices. He said the company is much more diversified than it previously was and feels that such hostile negative news won't be repeated.

Am I Diversified?

Cramer played "Am I Diversified" with callers to see if their portfolios have what it takes.

The first caller's portfolio included

Verizon

(VZ) - Get Report

,

JP Morgan

(JPM) - Get Report

,

Dow Chemical

(DOW) - Get Report

,

Merck

(MRK) - Get Report

and

Altria

(MO) - Get Report

.

Cramer said this was a great high-yielding portfolio.

The second caller's top holdings included

Rite-Aid

(RAD) - Get Report

,

Sirius Satellite

(SIRI) - Get Report

,

Apple

(AAPL) - Get Report

,

Cal-Maine Foods

(CALM) - Get Report

and

AT&T

(T) - Get Report

.

Cramer said Rite-Aid, Sirius and Cal-Maine were speculative stocks and he wanted to see changes made. He suggested adding a defense and healthcare stock to the portfolio.

A Strong Report Card

Cramer once again welcomed David Pyott, Chairman and CEO of

Allergan

(AGN) - Get Report

to discuss his company's outlook.

Pyott said his company has a great story to tell, with sales up 23% year over year, earnings per share up 15%, and R&D spending up by 32%.

When asked about the company's slumping Botox sales domestically, Pyott focused on the drug's strength in overseas markets. He also said Botox is only one part of the company's portfolio and accounts for just 10% of its sales.

Cramer said Allergan is cheap, trading at just 17 times its earnings. He told viewers "this is your change to buy it cheap."

Sudden Death

Cramer was bullish on

Murphy Oil

(MUR) - Get Report

.

Cramer was bearish on

VeriFone

(PAY)

.

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Lightning Round

In the Lightning Round, Cramer was bullish on

DuPont

(DD) - Get Report

,

Dow Chemical

(DOW) - Get Report

,

Marathon Oil

(MRO) - Get Report

,

Sirius Satellite Radio

(SIRI) - Get Report

,

World Wrestling Entertainment

(WWE) - Get Report

,

Eaton

(ETN) - Get Report

,

Parker Hannifin

(PH) - Get Report

and

ONEOK Partners

(OKS)

.

Cramer was bearish on

Methanex

(MEOH) - Get Report

,

Synaptics

(SYNA) - Get Report

,

Dolan Media

(DM)

,

Tesoro

(TSO)

,

Akamai Technologies

(AKAM) - Get Report

and

Spartan Motors

(SPAR) - Get Report

.

Want more Cramer? Check out Jim's rules and commandments for investing by

clicking here

.

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

.

At the time of publication, Cramer was long Foster Wheeler, Verizon, Altria and Schering-Plough.

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.