Cramer's 'Mad Money' Recap: May 20

Cramer tells viewers how they can profit off the valuable tips from the hottest mutual fund. <A HREF="http://www.thestreet.com/headlines-and-perspectives/jim-cramer/index.html?cm_ven_int=320X240TSCAD"target="blank">Click for news from Jim Cramer.</A>
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What happens when a single mutual fund out performs all the rest? Jim Cramer told viewers of his "Mad Money" TV show Wednesday that the answer is easy: more people invest in it.

He said that if investors follow that money, they'll know exactly which stocks are poised to rocket higher.

Year to date, the

American Growth Fund Of America

(AGTHX) - Get Report

is up a stellar 9.5%, beating all other mutual funds handedly.

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Cramer said when a fund it this red hot, it's inevitable that new investors will begin pouring money into it. And once that money arrives, fund managers will often buy more of what's working and more of what they already own.

In the case of the American Growth Fund, the No. 1 holding is search giant

Google

(GOOG) - Get Report

. Cramer said the fund could easily double its $4 billion position in Google, as advertising dollars continue to migrate from print to online venues faster than anyone thought possible. He called Google "the cheapest growth stock I know."

American Growth Fund's second largest holding is

Oracle

(ORCL) - Get Report

, another stock Cramer endorsed without hesitation. Oracle enjoys a 13% growth rate and trades at just 13 times its earnings, said Cramer. He said the American Growth Fund could double its position here as well.

Third on the list is another tech name and Cramer favorite:

Cisco

(CSCO) - Get Report

, a stock which Cramer owns for his charitable trust,

Action Alerts PLUS. Cisco is nine points off its high, despite better-than-expected visibility going forward. Cramer said Cisco could see $23 to $24 a share.

Also on the list of top holdings,

Apple

(AAPL) - Get Report

, another tech juggernaut with Cramer's blessing, and

Microsoft

(MSFT) - Get Report

, the only name Cramer said he would not be a buyer of.

Cramer said these tech names will rocket as the economy begins to recover, and with the American Growth Fund Of America also likely to be huge buyers of these names, its time to "tag along and get long."

The Case for Natural Gas

Cramer spoke with Michael Linn, chairman and CEO of

Linn Energy

(LINE)

, to get the latest read on the natural gas industry and to see whether natural gas as a commodity is poised for a comeback.

Linn said his company has a disciplined approach to its production growth, and as such, hedged its 2009 production at $80 to $100 a barrel oil prices. He said that the company's outlook through 2012 remains bullish.

When asked about the outlook for natural gas given that President Obama has not mentioned the fuel since his election, Linn said that he sees natural gas as playing an important role as bridge fuel to a clean energy future. He said that Obama will have to endorse the fuel eventually given its cleaner than coal or oil and acts as the backup power source for wind and solar power facilities.

Regarding increased competition from liquified natural gas (LNG) imports, Linn said here too, he's not worried, as LNG will still not provide enough supply to meet demand.

Finally, when asked about the company's dividend yield, Linn said there are no plans to cut the company's dividend given its production hedges, proven reserves and disciplined approach to its business.

Cramer said all of his questions were answered by Linn, and he's now confident to recommend Linn Energy as a buy.

Am I Diversified?

Cramer spoke with callers to see if their portfolios have what it takes. The first caller's portfolio included

BP

(BP) - Get Report

,

Freeport McMoran

(FCX) - Get Report

,

Linn Energy

(LINN)

,

Wells Fargo

(WFC) - Get Report

and

Genco Shipping

(GNK) - Get Report

.

Cramer said this portfolio was not diversified with both BP and Linn Energy, and he recommend selling one of them.

The second caller's top holdings included

Force Protection

(FRPT) - Get Report

,

General Maritime

(GMR)

,

Northstar Realty

(NRF)

,

Veolia Environment

(VE)

and

Biovail

(BVF)

.

While this portfolio was diversified, it was much too high risk for this market and he recommended re-evaluting the holdings.

The third caller had

Johnson & Johnson

(JNJ) - Get Report

,

Disney

(DIS) - Get Report

,

Wells Fargo

(WFC) - Get Report

,

Deere & Co

(DE) - Get Report

and

ExxonMobil

(XOM) - Get Report

as their top five stocks.

Cramer called this portfolio perfect.

The fourth caller's top stocks were

BP

(BP) - Get Report

,

JPMorgan Chase

(JPM) - Get Report

,

Altria

(MO) - Get Report

,

Cellcom

(CEL) - Get Report

and

National Grid

(NGG) - Get Report

.

Cramer flagged two utilities with Cellcom and National Grid, saying one needed to be sold.

Mad Mail

Cramer told a viewer that

First Niagara

(FNFG)

has raised a lot of capital for acquisitions. He feels the company could double or even triple in size by the end of the year. He'd be a buyer of First Niagara on any weakness.

Cramer told a second viewer that

Geron

(GERN) - Get Report

is too speculative for this market.

Lightning Round

Cramer was bullish on

BP

(BP) - Get Report

,

Diana Shipping

(DSX) - Get Report

,

Frontline

(FRO) - Get Report

,

Nordic American Tanker

(NAT) - Get Report

,

NYSE Euronext

(NYX)

and

MasTec

(MTZ) - Get Report

.

He was bearish on

ING Group

(ING) - Get Report

,

Petrohawk Energy

(HK)

,

Coventry Health Care

(CVH)

,

Massey Energy

(MEE)

, and

Eagle Bulk Shipping

(EGLE) - Get Report

.

Check out the latest edition of

"Cramer's Take onTop-Searched Stocks" on Stockpickr.

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Want more Cramer? Check out Jim's rules and commandments for investing by

clicking here

.

Read more of Cramer's Mad Money Lightning Round insights

.

For "Mad Money" performance statistics and other links, check out Mad Money stats

At the time of publication, Cramer was long Cisco, BP, Freeport McMoRan, Wells Fargo, JPMorgan Chase.

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."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com 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 TheStreet.com, 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 TheStreet.com. 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 TheStreet.com, 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.