Cramer's 'Mad Money' Recap: Getting Beyond the Market Malaise (Final) - TheStreet

Cramer's 'Mad Money' Recap: Getting Beyond the Market Malaise (Final)

Cramer says there's a big disconnect between the gloom and doom weighing on the market and the impressive display of corporate success he's been seeing.
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NEW YORK (

TheStreet

) -- While there are a lot of reasons to feel bad about this market, a lot of great things are happening to U.S. companies at the micro-level, Jim Cramer told viewers of his "Mad Money" TV show Thursday.

Cramer said just yesterday alone, there were a multitude of great earnings calls, but none of them seemed to matter as the oil spill in the Gulf continues and politics in Washington and Europe steal the focus.

Here were a few notable mentions.

Nike

(NKE) - Get Report

management said "we've never been more profitable," as it delivered record revenue and profits on tremendous momentum. Yet he said the stock closed down $2.89.

Bed Bath & Beyond

(BBBY) - Get Report

saw its net sales up 13.5% with strong margins, as it raised guidance for the year. Yet shares tanked $2.34.

Cramer said

Darden Restaurants

(DRI) - Get Report

saw higher margins and announced expansion plans and a stock buyback, but its shares fell $2.44.

Jabil Circuit

(JBL) - Get Report

posted 35% higher revenues and has $600 million in cash, yet lost $1 a share.

And the list continued with

Carmax

(KMX) - Get Report

,

Adobe

(ADBE) - Get Report

and even

Dell

(DELL) - Get Report

reporting positive news, only to see their share prices fall.

Cramer said this news might not matter now, but soon, it will.

Portfolio Adjustments

Cramer took a few minutes to revisit and update his "kid-friendly" basket of stocks, which initially debuted on June 19 of last year.

He said the basket, which included

Apple

(AAPL) - Get Report

, a stock which he owns for his charitable trust,

Action Alerts PLUS,

Walt Disney

(DIS) - Get Report

,

Hasbro

(HAS) - Get Report

,

McDonald's

(MCD) - Get Report

, another Action Alerts PLUS name, and

VF Corp

(VFC) - Get Report

, was up 50% on the year, while the

S&P 500

was only up 17%.

Cramer said he'd keep McDonald's, up 16%, thanks in part to its 3.2% dividend yield, along with Apple, up 93% and going strong, Disney, up 43% and Hasbro, which rounded out the four up 70% since Cramer's recommendation.

Cramer said he is changing VF Corp, however, despite shares being up 26%, and is replacing it with

Nike

(NKE) - Get Report

. He said that Nike is not only more recognizable to kids, but it also has more growth, less exposure to Europe and is trading at a discount.

Gulf Victim

In the Thursday "Sell Block" segment, Cramer took aim at the obvious, and put

St. Joe Company

(JOE) - Get Report

on the sell block. He said that as the largest real estate developer in Florida, St. Joe is in the bullseye of the Gulf oil spill, and investors need to steer clear.

Cramer has harsh words for the three or four analysts covering St. Joe that rate the company a neutral as opposed to a sell. He told viewers without hesitation that the word "sell" was made for a situation like this.

Cramer said that he applauds St. Joe's efforts to diversify and its strong balance sheet, but he said the fact remains that it is primarily a property owner and land developer with 70% of its properties within 15 miles of the now imperiled coastline of Florida. He said the company just quite simple cannot quantify the downside it will have as tar balls begin washing up on its beaches.

Cramer said it may be decades before vacationers decide to buy property in this stricken region of Florida, and given the clean up costs, lost business and property devaluation, St. Joe may never know the true extent of the damage.

Additions, Subtractions to Wall of Shame

In his final segment, Cramer took out time to reshuffle his "Wall of Shame" list of the worst CEOs in America. He said that without question, Tony Hayward, CEO of

BP

(BP) - Get Report

, remains in the No. 1 spot as the most clueless corporate executive, but the rest of the list is up for grabs.

Moving into the No. 2 spot, Wes Edens of

Fortress Group

(FIG)

, after his company's stock has fallen 39% since Cramer added him to the wall. He put Irene Rosenfeld of

Kraft

(KFT)

, in the No. 3 spot after her botched takeover of Cadbury, a deal widely seen as "dumb."

Coming off the wall were William Kleese of

Valero

(VLO) - Get Report

, a man who's served his time, said Cramer, and that Khaykin of

International Rectifier

(IRF)

whose rejection of a takeover bid earned him a spot on the wall last year.

Speaking of takeovers, Cramer moved up John Lauer, CEO of

Diebold

(DBD) - Get Report

after he too rejected a takeover at significantly higher prices.

Finally, remaining on the list was George Economou, CEO of

Dryships

(DRYS) - Get Report

, who's decision to not only buy ships at the most inopportune time was coupled with the decision to build four new offshore drilling rigs.

Lightning Round

Cramer was bullish on

General Mills

(GIS) - Get Report

and

Centurytel

(CTL) - Get Report

.

He was bearish on

EV3

(EVVV)

and

eBay

(EBAY) - Get Report

.

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

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

.

Want more Cramer? Check out Jim's rules and commandments for investing 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, McDonald's.

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.