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Cramer's 'Mad Money' Recap: Market Pause

Cramer says the market is gently pausing after a big stock runup.
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Because of CNBC's winter Olympics coverage, Cramer's "Mad Money" TV show has been reschedued to noon EST.

NEW YORK (

TheStreet

) -- "We can fret about the markets, just don't fret too much," Jim Cramer told the viewers in a special "High Noon" episode of his "Mad Money" TV show Monday.

He said there are legitimate reasons why the market is weakening, but there are also still opportunities out there.

After months of rallying, it's normal to ask whether the markets have simply run out of gas. But Cramer said after the 3% move off the January lows, it's normal for a pause in the markets. He said stocks have rallied too far, too fast, and are likely working off their overbought condition.

But despite the overall weakness, and the fact that a recent survey showed nearly two-thirds of Wall Street analysts hate the current market action, Cramer said opportunities still abound, as some sectors are still sitting at historically low multiples.

On the heels of

Schlumberger

's

(SLB) - Get Report

acquisition of

Smith International

(SII)

, Cramer said Schlumberger is still cheap given that the acquisition will give it turnkey drilling and exploration abilities.

Cramer also said that

Air Products

(APD) - Get Report

wins, regardless of whether its deal to acquire rival

Airgas

(ARG)

succeeds. With Airgas, Cramer said Air Products will be able to increase margins. Without it, he added, the stock will likely snap back to its pre-deal levels.

Cramer also said the multiples in tech, industrials and the bank stocks are at historic lows. He told viewers that he'd need to see stronger employment numbers before turning bullish on the homebuilders or retail stocks.

Building Customer Trust

Cramer once again sat down with restaurateur and author Danny Meyer, whose hospitality focused index of stocks has doubled the performance of the

S&P 500

since its inception on Feb. 2, 2009.

Meyer explained that whether it's a recession, or an expansion, the way a company makes its customers, employees and community feel is what matters most. He said the current recession proves that even when times are tight, consumers don't trade down to cheaper products, they stick with the brands they trust.

Meyer noted that

Chipotle Mexican Grill

(CMG) - Get Report

exemplifies hospitality and was a leader in his hospitality index. He said the next generation of hospitality-oriented companies are likely to be those involved in travel, like

Marriott

(MAR) - Get Report

and

JetBlue Airways

(JBLU) - Get Report

.

In the negative column, Meyer said that

Build-A-Bear Workshop

(BBW) - Get Report

has been a disappointment, and he'd consider replacing that stock with

DreamWorks Animation

(DWA)

.

Retail Watch

When it comes to the retail stocks, Cramer said he prefers a good old fashioned bottoms up analysis over guessing at marco-economic trends. That's why he's bullish on

Lowes

(LOW) - Get Report

after the company beat expectations and announced a $5 billion stock repurchase program.

Cramer said other retailers, like

Sears Holdings

(SHLD)

TheStreet Recommends

may finally be turning around as that company is closing underperforming stores and realizing the potential of its brands.

Cramer said he's getting worried about

Target

(TGT) - Get Report

, which he said seems confused between being a discount giant versus a trade-up destination.

Finally, Cramer gave

Macy's

(M) - Get Report

a $20 price target, while noting that

TJX Stores

(TJX) - Get Report

may be breaking out to the upside. He said that grocer

Safeway

(SWY)

might also surprise when it announces later this week.

Market Pulse

In the "Pulse of the Market" segment, Cramer said that

Amazon.com

(AMZN) - Get Report

will prevail in its fight with book publishers. He noted that

Qualcomm

(QCOM) - Get Report

simply has no momentum and that it's time to give up on

First Solar

(FSLR) - Get Report

.

Cramer said that

Google

(GOOG) - Get Report

might finally be on the move, and that investors also need to consider

McDermott

(MDR) - Get Report

and

URS

(URS)

as winners in the nuclear group.

Closing Comments

Cramer said the announcement that

Thermo Fisher

(TMO) - Get Report

is acquiring

Millipore

(MIL)

for $6 billion is a great deal for Thermo, and proves that mergers and acquisitions are alive and well.

-- 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.

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.

At the time of publication, Cramer was not long any stock mentioned.

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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