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NEW YORK (
) -- The market's message of doom and gloom isn't necessarily based on reality, Jim Cramer told the viewers of his "Mad Money" TV show Tuesday after a terrible trading day.
Cramer said the markets are painting a doomsday scenario in which unemployment will stay high forever, banks will never lend again because of the financial overhaul bill, and there will not be another home bought or built, now that the tax credit has expired.
Cramer said the markets act as if no one will ever buy another car, never export anything to China and never go out to dinner again. He said the markets act like Washington wants everyone to join a union and the technology sector has totally run out of steam.
But in reality, Cramer said jobless claims have been declining in recent weeks. He said that banks just need of government prodding to lend. He said car sales are doing well, and the situation in China aren't as bad as people think.
There's an election coming in November, noted Cramer, meaning a second stimulus is likely, and perhaps even cuts in payroll taxes. Demand for energy is higher this year than last. And technology is clearly not out of steam as the iPhone proved last week.
Cramer said he still advises caution is this market and would not be aggressively buying stocks right here. But, he noted, the markets will overshoot the correct pricing on stocks, and when that happens, there will be plenty of opportunities. "Reality is stronger than the markets indicate," he concluded.
"There are some companies that are still doing well," Cramer told viewers as he unveiled the second stock in his "gloom busters" series. He said that global consulting and outsourcing giant
, a stock which he owns for his charitable trust,
Action Alerts PLUS, is one stock worth a second look.
Cramer said that Accenture helps companies cut costs, which is why its business is on fire, allowing the company to deliver 74 cents a share in earnings, fours cents higher than analysts were expecting. Accenture also gave bullish guidance, forecasting 7% to 10% revenue growth and 12% to 15% earnings-per- share growth.
Cramer said amongst all the positive numbers in Accenture's conference call, what stuck him most was the company's optimism. He said the company simply cited increased demand for its services as the reason for its success, and made no mention of a slowdown in China or Europe, instead only noting "pockets of uncertainty" for the company.
Cramer said Accenture's key metric to watch is the company's total bookings, a number which was also strong this quarter. He said Accenture is also hiring, growing its workforce to 190,000 workers worldwide.
With shares of Accenture down 13% from their highs, Cramer said now is a great time to consider Accenture. The company has a stock repurchase program and sports a 1.9% dividend yield. Accenture trades at just 13.2 times earnings, compared to a historical average of 18 times earnings.
Bullish on Citigroup
In the "Off The Charts" segment, Cramer went head to head with colleague Tim Collins over the chart of
, a stock that's been held back by the endless government selling of its $7.6 billion stake in the company.
According to Collins, Citigroup's daily chart shows a rising wedge pattern where the lows are getting higher, but the highs are staying the same. Collins noted that this bullish pattern is also confirmed by the stock's 14-day moving average crossing its 30-day average. Also bullish is the relative strength index and on balance volume indicators.
Turning to the weekly chart, Collins noted that Citigroup is due for a bounce as the stock is picking up momentum despite the government's pressure. He sees shares rising to $4.60, or even $5, a share and would be buying aggressively.
Cramer agreed, and reiterated his eventual $12 price target for Citigroup. He said the company is very well run, and the worst of its problems are now behind it. He said Citigroup is seeing fewer and fewer charge-offs and delinquencies, and its book of business is getting stronger and stronger.
Global Thirst for Natural Gas
P/>In his "Eureka Moment" segment, Cramer said he's finally figured out why the world's largest oil companies are so aggressively buying natural gas assets here in America. In a word, exporting.
Cramer said there's no doubt in his mind that America will become the world's largest exporter of natural gas in the coming decade, as clearly our government doesn't want it, but the rest of the world does.
Argentina, for example, has 1.8 million natural gas vehicles, and is thirsty for as much gas as it can get, said Cramer. And with the Panama Canal widening in 2014, we'll finally be able to deliver. Additionally, Cramer said our country's second liquified natural gas facility, to be based in Louisiana, will be online by 2015.
Cramer said the domestic price of natural gas won't matter anymore, as prices for gas around the world are considerably higher than they are here in the U.S., where we have at least a 100-year supply of the clean burning fuel.
Cramer said the rest of the world wants off of oil today, and since we're not using it, it's going to be exported.
Cramer was bullish on
He was bearish on
-- Written by Scott Rutt in Washington D.C.
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At the time of publication, Cramer was long Accenture.
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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