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"We love comebacks, we love underdogs, we love tenacity," an upbeat Jim Cramer told the viewers of his "Mad Money" TV show Tuesday. And that's precisely why he's the stock market's biggest fan.
Cramer said no one in the mainstream media will tell you to buy on days like today except him. He said the fact is that days like today, days with intraday pullbacks, are the best time to be buying.
Why so bullish? Cramer said the simple truth is that big money mangers still aren't fully invested, and have no choice but to continue buying stocks and lifting the markets. This is clearly evident by the success rate of recent secondary offerings of stock.
Cramer said secondary offerings like
Bank of New York Mellon
are good things, and that's why they're trading higher. The stress tests, he said, make banks stronger and more solvent. How can they be bad?
In the case of
, another successful offering, the company is using the money to firm up its balance sheet and open itself up to new opportunities. How is that bad for the stock?
Cramer said he'd be a buyer of stocks you like on any weakness. He recommended the upcoming offering from
as one example, but not at the offering price, rather below that price as the stock will likely sink before rocketing higher.
Cramer said his bottom line is that more people need to get into this market than want to get out. He said they should use the intraday lows as buying opportunities.
Cramer welcomed Jim Hagedorn, chairman CEO of
, to the show to discuss that company's most recent earnings and outlook.
Hagedorn said business is going great and that everything is well under control. He said that the negativity surrounding the company's earnings call came from analysts expecting an estimate boost, which Hagedorn said he's not yet ready to deliver.
Scotts is experiencing record sales, he said, with shipments to retailers up 45% in May, as many stores leverage the company's brand to lure shoppers into their stores.
Hagedorn also said that while currency conversion is costing the company, it accounts for only a 5% drag on its earnings.
Finally, when asked about the company's Smith & Hawken brand of high-end gardening supplies and furniture, Hagedorn admitted the brand's products are not right for this environment but noted that the company is looking into ways to fix the problem.
Cramer said that Scotts Miracle-Gro is a great company and has a stock that's headed much higher.
Off the Charts
In the "Off The Charts" segment, Cramer went head to head with colleague Rick Bensignor over the chart of
, a stock which Cramer owns for his charitable trust,
Action Alerts PLUS, to see whether the technicals, or the fundamentals, are in control of the stock's future.
According to Bensignor, Goldman Sachs is a sell, with both the daily and weekly charts indicating that buyers are becoming exhausted over the stock's monster run from $47 to over $140 a share. Bensignor noted resistance at the $140 level for Goldman, as well as dwindling volume as the stock edges higher.
Cramer said Bensignor's thesis is simple: The stock has run too far, too fast, and is likely for a pullback. And Cramer agrees. But he said that's not a reason to sell the stock.
Cramer said he's a buyer of Goldman whether it goes higher, goes lower or stays the same. The company is in a great position to take market share, increase margins and continue advising companies how to navigate these tough times.
According to Cramer, the fundamentals at Goldman Sachs are not only good, they're improving. Every division at the company, he said, has substantial room for improvement. While the stock may look pricey, it's trading at a huge discount to historical levels given the company's sizable book value.
Outrage of the Day
Cramer took unusual aim at Nobel Prize winner Paul Krugman, as well as at all of the other Nobel Prize winners and PhD's who are promoting negativity, and the notion that it may take as much as a decade for the economy to recovery.
"Enough!" said Cramer. "Enough with the negativity." Cramer said he's already outlined why the U.S. economy is not like that of Japan in the 1980's, and why he feels the housing bottom is already almost upon us.
The economy doesn't need academic doctors; it needs trauma doctors, doctors who can handle life and death situations and fix big systemic problems in a hurry, he said.
He praised both Treasury Secretary Tim Geithner and Federal Reserve Chairman Ben Bernanke for not acting like academics, and taking charge.
Cramer was bullish on
Bank of Montreal
He was bearish on
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At the time of publication, Cramer was long Goldman Sachs.
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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