Cramer's 'Mad Money' Recap: Hidden Gems - TheStreet

Cramer's 'Mad Money' Recap: Hidden Gems

Investors should look at tech and retail stocks during this period of market turmoil, Cramer says.
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"There are still some hidden gems in this market," Jim Cramer told viewers on another special, midday episode of his "Mad Money" TV show Wednesday.

While the markets continue to focus almost exclusively on the fates of

Freddie Mac

(FRE)

and

Fannie Mae

(FNM)

, Cramer said the real buys may be in retail and tech.

Cramer said that he's taking a new look at the retailers after many have reported better-than-expected numbers this past quarter. He said that

TJ Maxx

(TJX) - Get Report

is now among his favorites.

In the technology sector, Cramer said the earnings from

Hewlett Packard

(HPQ) - Get Report

, which he also owns for his

Action Alerts PLUS portfolio, really do matter and that it's amazing that HP's business has been so good in a worldwide slowdown.

He sees strength in many of the big cap tech names like

Research In Motion

(RIMM)

,

Apple

(AAPL) - Get Report

,

Intel

(INTC) - Get Report

,

Google

(GOOG) - Get Report

and even

Qualcomm

(QCOM) - Get Report

.

Cramer: How to Buy General Mills

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Surviving the Ethanol Mandate

Cramer talked with

Tyson Foods

(TSN) - Get Report

CEO Dick Bond to get some insights into the state of the food business as it struggles against sharply rising inflation in raw costs.

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Bond reiterated his opposition to government mandated quotas on ethanol production, saying that the conversion of 30% of the nation's corn crop to 3% of the country's gasoline needs hurts consumers more than it helps. He called the mandates just wrong, saying the consumers haven't yet felt the true magnitude of the inflation since many companies have been working hard to absorb them.

According to Bond's estimates, the price of corn could drop as much as $1 a bushel to $1.20 a bushel if the mandates were repealed.

Asked about growth opportunties in China, Bond said the Chinese population only consumes about 20 pounds of poultry per capita. He said that number could rise to 30 pounds in five to six years.

Another area of strength for Tyson is the tortilla market. Bond said his company is the second largest producer of tortillas and is rapidly taking market share from traditional bread products.

Outrage of the Day

In this segment, Cramer wondered "what ever happened to stopping trading when news is pending?"

In the "old days," when a company had news that was known by some, but not by all, trading would be stopped until that news could disseminate, he noted.

However, in the case of the precipitious decline of Freddie Mac and Fannie Mae shares, Cramer said the trading indicates someone, somewhere, knows something. He urged the government to just make its intentions known so the markets can move on.

A Sticky Bid

Cramer talked with David Steiner, CEO of

Waste Management

(WMI)

to discuss his company's recent unsolicited bid for competitor

Republic Services

(RSG) - Get Report

, -- a deal has negatively impacted its share price.

Steiner defended the offer, saying that the combined company has the potential to leverage the great assets of both companies and create even more value. He emphasized that Waste Management is committed to creating shareholder value, and that if the deal doesn't create both long-term and short-term value for its shareholders, it would walk away from the deal.

Steiner said that he feels Waste Management's current share price is undervalued, and even if the Republic deal doesn't happen, it's still good news for the industry and his company wins. He predicts strong growth and margin expansion to continue, either way.

Final Thoughts

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Cramer said he thinks we're near a bottom in the Chinese markets, and that should cause a global stabilization in oil and other commodity prices.

He said that stabilization, along with his target price for oil at $110 a barrel, would be good news for technology, infrastructure and coals stocks, as well as for the banking stocks, which could meant a fresh injection of Chinese capital.

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

clicking here

.

Read more of Cramer's Mad Money Lightning Round insights

.

For "Mad Money" performance statistics and other links, check out Mad Money stats

At the time of publication, Cramer was long on Hewlett-Packard.

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."

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