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Cramer's 'Mad Money' Recap: How to Own Great Stocks (Final)

Cramer discusses ways to lessen the fear of buying stocks like Apple and Google that carry a triple-digit price tag.
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) -- "It's time to dispel the notion that some stocks are too expensive," Jim Cramer told the viewers of his

"Mad Money"

"Mad Money" TV show Monday.

He explained that a high share price does not mean a stock is too expensive.


Goldman Sachs

(GS) - Get Goldman Sachs Group Inc. (The) Report



(AAPL) - Get Apple Inc. Report

, two stocks which Cramer owns for his charitable trust,

Action Alerts PLUS, along with


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TheStreet Recommends

(GOOG) - Get Alphabet Inc. Report


(AMZN) - Get Inc. Report


Chipotle Mexican Grill

(CMG) - Get Chipotle Mexican Grill Inc. Report

. Cramer said these triple-digit share prices may seem terrifying, but on a price-to-earnings mulitiple, these stocks are actually cheap.

"The share price tells you nothing about the value of a company," Cramer reminded viewers. He said the notion that investors can't make money in these stocks by owning just a few shares is totally wrong. He suggested investors divide these companies' share prices and earnings by 10 to make them easier to get a handle on.

Failing that, Cramer said investors may also want to consider deep-in-the money call options as a way to control the same amount of stock for less money. He said that in-the-money calls offer all of the upside, with very limited downside, and can be a great way to control a larger number of shares.

Cramer said he'd love to see Apple, Google and Goldman split their stocks 10-to-1 to make them more accessible to everyone, but even without a split, he said, these are still great stocks to own, no matter how you end up buying into them.

Broken Stock

"When a powerful growth stock stalls, a lot of people panic," Cramer told viewers, but that panic isn't always warranted.



(NFLX) - Get Netflix Inc. Report

, one of stocks in Cramer's C.A.N.D.I.E.S. high growth portfolio. On June 21, Netflix reported its earnings, only to see its share price plummet from $199 to $95 a share. On June 26, Cramer said the panic was overdone, and that the stock had room to run. Since then, Netflix has recovered to $116 a share.

Cramer said history is now repeating itself with pharmacy benefit manager

Express Scripts


, a stock that's lost 14% since it reported.

Cramer said Express Scripts is merely taking a breather, and its long-term story remains in tact. He said while some analysts worry over pricing pressure and the company losing clients, price pressure can't stop the Express Scripts' upward momentum, nor the fact it has a 95% customer-retention ratio.

The real driver for Express Scripts, said Cramer, is that fact that over the next four years, over $100 billion worth of prescription drugs are coming off patent. Once generics are available, Express Scripts will make more money. He said this market is always competitive, but the patent story isn't changing.

Express Scripts reported earnings of $3.10 a share, up from $2.92 last quarter and seven cents better than estimates. He said the company trades at just 14.4 times earnings, making it the cheapest of the C.A.N.D.I.E.S. portfolio.

"Express Scripts is a broken stock," said Cramer, "not a broken company."

Mobile Internet Play

It's hard to believe it's almost been a year since Cramer debuted his Mobile Internet Index of the hottest stocks taking advantage of the mobile Internet tsunami. Yet a year later, the index is up 29%, compared to just 13% in the

S&P 500.

But even with the index's success, Cramer said it's time to make a change.

Cramer said with

ADC Telecom

(ADCT) - Get ADC Therapeutics SA Report

getting a takeover bid, that stock's upside has now been capped, and its time to ring the register and swap into the little known

Acme Packet



Cramer said put simply, Acme Packet makes the network equipment needed to seamlessly transfer voice and video across the Internet. By all estimates, this sector will be a $2 billion business by 2014, and Acme is the largest player with 50% share, four times that of its largest competitor.

With 66% of its business coming from North America, Cramer said Acme has plenty of room to expand internationally, and is starting to win big in China. It beat earnings by one cent a share on revenue that was up 62% from year ago levels. Gross margins were an impressive 84%.

"There's nothing to dislike here," said Cramer, noting that Acme shares ran up ahead of their earnings and have sold off since. He said this stock trades at 37 times earnings with a 26% long-term growth rate, and that makes it a buy, buy, buy.

Outrage of the Day

Cramer sounded off on the upcoming IPO of General Motors. He implored the government to do the right thing, and allow everyone to get in on the deal.

Cramer said if the government takes GM public using a traditional offering, only the brokers and their fat cat clients, will make money. He said they may complain that anything other than a traditional offering will work, but as Google proved with their open auction concept, it's possible for everyone to win.

Cramer said it's time to stop the "business as usual" on Wall Street. He said what's good for GM is good for Americans, and not just for the rich hedge funds. "Let the people in," he pleaded.

Lightning Round

Cramer was bullish on

Eldorado Gold

(EGO) - Get Eldorado Gold Corporation Report


Deere & Co

(DE) - Get Deere & Company Report








Energy Transfer Partners



He was bearish on

SandRidge Energy

(SD) - Get SandRidge Energy Inc. Report


Tyson Foods

(TSN) - Get Tyson Foods Inc. Report


-- 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 Goldman Sachs, Apple.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 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, 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, 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 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, 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.