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) -- "You have to learn from the market's mistakes," Jim Cramer told the viewers of his

"Mad Money"

TV show Tuesday.

His said if a company's fundamentals are intact, sometimes going against the crowd is the perfect move.

Cramer said handling losses is one of the most difficult things for new investors. To help explain what to do with losses, Cramer looked at four stocks from his charitable trust,

Action Alerts PLUS.

MedcoHealth Solutions


was first on Cramer's list. When this company reported a disappointing quarter, its shares plunged from $54 to $43 a share.

But that was not the time to sell, said Cramer, it was the time to buy. While there was indeed a lull in sales, Medco's long-term thesis remained in tact. In the days that followed, Medco recovered $4.68 from its low, and still trades at only 12.5 times earnings.

Teva Pharmaceuticals

(TEVA) - Get Teva Pharmaceutical Industries Ltd. Report

was next on Cramer's list. In July of this year, Teva shares plunged from $54 to $47 on multiple downgrades. But Cramer said here too, the fundamentals remained in tact, and that stock is up more than $7 from those lows.

TheStreet Recommends

One stock where Cramer did sell prematurely was


(BP) - Get BP Plc Report

. Cramer said he sold BP in the low $30s, but admits now that the negativity from a few months ago was too high. While the stock has not moved much since its lows, Cramer said his shortsightedness cost him.

The same was the case in

Goldman Sachs

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

, which dropped like a stone when Congress and the Securities and Exchange Commission investigated the company. Cramer admitted giving up on Goldman, and in his haste to sell, lost $20 worth of upside as the stock eventually recovered.

Cramer said investors should learn from his mistakes, selling isn't always the right answer.

Win-Win Stock

Whether you're a bull, or a bear, when it comes to the housing market, Cramer said he's got a stock that wins either way. He recommended a little known stock of


(CLGX) - Get CoreLogic, Inc. Report

, which he says seems to defy traditional market logic.

Cramer explained that CoreLogic provides information services to the real estate market, and profits from both new home mortgages and from bank foreclosures. If you're a bull, CoreLogic makes 50% of its revenues from providing information on appraisals and tax information. But if you're a bear, CoreLogic also makes 25% of its revenues providing similar services to banks for foreclosure proceedings.

In addition to its transaction based services, CoreLogic also sells subscription-based data analysis services that offer higher margins. Cramer said the weak housing market has long been priced into CoreLogic's shares, so whichever way the market turns from here is a win for the company.

Trading at a paltry six times 2011 earnings, Cramer said CoreLogic is a steal, especially since the company is under followed by Wall Street, leaving a lot of room for upgrades and new coverage initiations.

Buy, Sell Higher

"Don't be afraid to buy high and sell higher," Cramer told viewers as he continued with his "Chart Week" series dedicated to exploring technical analysis. He highlighted


(CAT) - Get Caterpillar Inc. Report

, a stock recently featured on his "Made Here" series of the best American manufacturers.

Cramer noted that Caterpillar has had an amazing run, from $25 a share at the lows of March 2009, to a 52-week high over $75 a share today. That's a gain of 240%. Cramer said while novice investors may feel they missed the move, or decide to ring the register, the charts say otherwise. He turned to colleague Ken Shreve for the details.

According to Shreve, with the markets looking so strong, the chart of Caterpillar does as well. The stock broke out of its consolidating phase in April 2009, and again in April 2010. With all of those who owned the stock pre-2009 now back to even, Shreve said it's clear that investors are still buying the stock aggressively.

Cramer agreed, noting that only 381 mutual funds own Caterpillar, as opposed to over 1,000 for other companies. Cramer said he'd be an aggressive buyer of Caterpillar on any weakness.

With a 20% long term growth rate and a 2.3% dividend yield, Cramer said now is a great time to buy some Caterpillar. Investors shouldn't fear the stock just because it has had a big move higher, he said.

A Boring Buy

Cramer said the filtration business may be boring, but it's expanding rapidly, and that makes filtration expert

Pall Corp

(PLL) - Get Piedmont Lithium Inc Report

a buy.

Cramer explained that Pall Corp makes filters for a long list of applications, from air and water filters to filters for industrial machinery, ships, semiconductor manufacturing, food and beverage, and even blood filtration. That makes Pall Corp a play on the global recovery, as companies add capacity, they need more filters.

Pall Corp has a $39 billion market opportunity, said Cramer, and delivered an 8- cent a share earnings beat when it last reported with orders up 19%. With only 33% of sales stemming from the Western hemisphere, Cramer said Pall is a winner in the global recovery.

Cramer said Pall Corp may also be a takeover target, as others in the industry have received bids at a 50% premium to their share prices.

Lightning Round

Cramer was bullish on

Petroleo Brasileiro

(PBR) - Get Petróleo Brasileiro SA Report


Inergy LP



Devon Energy

(DVN) - Get Devon Energy Corporation Report


Abbott Laboratories

(ABT) - Get Abbott Laboratories Report


Network Appliance

(NTAP) - Get NetApp, Inc. Report


Closing Comments

Cramer said that


(ADBE) - Get Adobe Inc. Report

had an awful quarter, and it really looks like Action Alerts PLUS stock


(AAPL) - Get Apple Inc. Report

is hurting their business.

He was bearish on

JDS Uniphase



Mindray Medical

(MR) - Get Montage Resources Corp. Report


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

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Scott Rutt.

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


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clicking here.

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


At the time of publication, Cramer was long MedcoHealth Solutions, Goldman Sachs, BP,Teva Pharmaceuticals, and 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.