Cramer's 'Mad Money' Recap: Fundamentals Win - TheStreet

Search Jim Cramer's Mad Money trading recommendations using ourexclusive Mad Money Stock Screener and watch Jim Cramer's Mad Money Post Game videoexclusively on TheStreet.com.

NEW YORK (

TheStreet

) -- All of the stocks that were hardest hit earlier in the week are now the big winners, Jim Cramer told viewers of his "Mad Money" TV show Friday afternoon.

Cramer said the fundamentals always win out eventually, and even the endless assault from Washington couldn't keep stocks like

JPMorgan Chase

(JPM) - Get Report

, a stock which he owns for his charitable trust,

Action Alerts PLUS, and health insurer

Wellpoint

(WLP)

down forever.

Cramer said that investors could've caught a quick eight points in

Apple

(AAPL) - Get Report

, another Action Alerts Plus name, if they ignored the bears, who offered countless reasons to hate the stock. Cramer said that after backing out the cash Apple has on hand, the company's current P/E ratio barely qualifies it as a growth stock, and that's way too cheap.

So what's really going on in the markets? Cramer attributed today's market surge to the end of the month tradition of hedge-fund managers marking up their favorite stocks, in efforts to save an otherwise difficult month.

Regulatory Hassles

In the "Executive Decision" segment, Cramer sat down with Michael Ward, chairman, president and CEO of

CSX

(CSX) - Get Report

, a company which reported disappointing results in January but raised its dividend by 9%.

Ward said that CSX has seen big movements from China in recent weeks, with the Chinese buying over five million tons of coal for their growing steel production. Ward said that five years ago, China was an exporter of coal, but now its insatiable appetite for steel has turned it into a growing importer.

Ward also said that the he's seeing a rebound in several areas, including autos, metals, steel and fertilizers, but he's not seeing any improvement in the movement of lumber, indicating that housing is still very weak throughout the country.

When asked about new safety regulations imposed by Washington on the railroads, Ward was much less optimistic. He said that despite the negative cost-benefit ratio from the latest round of regulations, the company is complying with the new laws. He said the increase in regulation from Washington since Obama took office has limited the company's growth.

Ward reminded Cramer that the railroads are vital to the country's success, and not only help the economy, but also the environment, where the company can move one ton of freight 436 miles on a single gallon of fuel.

Cramer remained a fan of CSX and had a bullish outlook on the stock.

Retail Glow

Despite all of the skepticism and naysayers, the fourth quarter was a great one for retailers, Cramer told viewers. He said the recent earnings beats from

Deckers

(DECK) - Get Report

and

Gap

(GPS) - Get Report

just confirms the trend set by countless other retailers.

Cramer said Deckers had a remarkable quarter, with a 94-cent-a-share earnings beat. Deckers is up 38% since Cramer last recommended it on Oct. 13, but he said the stock is headed still higher.

Cramer also noted magnificent quarters by

Home Depot

(HD) - Get Report

, a stock, which he owns for his charitable trust,

Action Alerts PLUS, and

Kohl's

(KSS) - Get Report

, as well as high end brands like

True Religion

(TRLG)

.

Cramer said the bears were wrong on all of these names, and in retrospect, December was a great buying opportunity that many investors missed because they listened to the naysayers.

-- 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 JPMorgan Chase, Apple, Home Depot.

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.