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"The game is over and the bulls have won," Jim Cramer told the viewers of his "Mad Money" TV show Wednesday.
He said that that we received the news that our financial crisis is officially over despite what the bears may say.
Cramer said today's news that both
Bank Of America
needed to raise additional cash as part of the federal government's "stress test" is decidedly bullish, given the amounts required are easily attainable for these large institutions.
He said the stress tests are for real and they're strong and they're working.
Cramer said the news that things weren't as bad as once thought sent the markets higher today. He said that money poured out of the food and drug stocks and back into the market leaders, oil, tech and the banks. With the market's now up 36% from the bottom, there's no denying this is a bull market, he said.
But what to make of the bears, those still spewing negativity at every turn in the media? Cramer said the bears have a fundamental problem; They can't change their minds without admitting they were wrong. The bears, he said, just dig in when they're wrong. He added they have every incentive to be consistent, but no incentive to be right.
Cramer said he's not afraid to change his mind when the facts change. He even went out on a limb to say that even the dreaded
might be out of the woods given the stress test results.
He said his bottom line is that the fix for the financials is in, and no one can argue the facts any longer.
Clearing the Air
Cramer welcomed Peter McCausland, CEO of
, to the show to issue an apology. After McCausland's last interview on October 23, 2008, Cramer recommended selling Airgas, a call he tonight said was very wrong, given the stock is up 37% from those levels.
McCausland said while earnings were down in this latest quarter, Airgas still posted record year and has acted quickly to cut costs and firm up the company's balance sheet.
When asked about overpaying for recent acquisitions, McCausland said with a long history of over 400 acquisitions, they're now a core competency for Airgas. He said the company approaches every deal cautiously and doesn't overpay.
Regarding the economy, McCausland said the downturn has been challenging, especially given the added pressures of the credit crisis on the manufacturing sector. He said Airgas is not seeing any sustained pickup in manufacturing activity yet, and has revised its guidance accordingly.
After being wrong in the past, Cramer said McCausland has a plan and this time "I'm sticking with him."
More tech offerings
In third part of his "Tech Spec" series, Cramer recommended
Cadence Design Systems
, a $5 stock that's in the business of electronic design automation, and one that could be the son of
, which is up 27% since Cramer's last buy recommendation.
Cramer said Cadence is a play on our love for better and better gadgets. The company makes the tools manufacturers need to make smaller, better, and faster microchips. It's a business with entrenched customers and one with little competition, he said.
So how did the company drop from a $17 stock in 2008 to just $5 today? By screwing up royally, he said.
He said Cadence was a money loser in 2008, and its management team was fired for not filing its reports with the Securities and Exchange Commission on time. The company was almost delisted as it changed the way it recognized revenue as part of a government probe.
But all that is in the past, said Cramer, and the company beat its earnings by 2 cents in its last quarter and has $2.20 a share in cash on the books. Cadence is also seeing insider buying by its new chairman and CFO.
And most importantly, with a year's worth of reporting using its new accounting system under its belt, analysts can now compare apples to apples when evaluating the stock.
Cadence is a company that's turned itself around and is ready to be bought, he said.
Am I Diversified?
Cramer spoke with callers to see if their portfolios have what it takes. The first caller's portfolio included
Research In Motion
( RIMM) and
Cramer said Research In Motion and Texas Instruments were too similar. He said Texas Instruments should be sold to make room for an oil or gas stock like
, a stock which Cramer owns for his charitable trust,
Action Alerts PLUS.
The second caller's top holdings included
( BVF) and
Cramer identified two of a kind in this portfolio as well, saying EV Energy and Teekay Offshore were too similar. He recommended a bank like
, another Action Alerts Plus name.
Nordic American Tanker
Cramer was bearish on
Dr Pepper Snapple
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At the time of publication, Cramer was long General Electric, ConocoPhillips, JPMorgan.
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