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"Today's market action was so bullish; it's time to sell," Jim Cramer told viewers of his "Mad Money" TV show Tuesday.

After rallying hard from last month's lows, the market is so over-bought that it's time to ring the register and take some profits, he said. Everyone seems to be jumping on the bull bandwagon, and that simply won't last, he added.

According to Cramer, much of the recent enthusiasm for the markets stems from the fact that central bankers around the globe finally "get it" and are stepping up to save their economies.

He said the federal government seems to be buying up everything in sight, even things that are totally undeserving.

Although the possibility of another Great Depression is off the table, the possibility of a severe recession still exists, and it won't be long before investors return to a fearful stance, he said.

Cramer advised taking profits and trimming positions in the areas he's been touting such as high-yielding dividend stocks, recession resistant names, and companies that were trading at or near their cash values.

He said investors will need cash to take advantage of the next round of selling.

"It's time to take profits before they disappear," said Cramer. "Be ready to buy, buy, buy when the next sell-off hits."

Cramer: Follow These Dow Stocks

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Stick With Staples

"On Wall Street, good things don't come in small packages," Cramer told viewers.

That's why when it comes to office supplies, he's choosing



over its smaller rivals

Office Depot

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TheStreet Recommends

(ODP) - Get The ODP Corporation Report





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Both OfficeMax and Office Depot have had incredible runs as of late, posting a 92% and 98% gain in recent sessions. But Cramer said the small share prices of both companies give them the illusion of value while Staples is 10 times the company of either of them.

Cramer said Office Depot and OfficeMax are not cheap. Office Depot trades at just 10 times its earnings with an $890 million marketcap, but carries $900 million in debt.

Similarly, OfficeMax trades at just 5 times earnings with a $500 million marketcap, with $1.8 billion in debt.

"You want best of breed," said Cramer. Staples may have only had half the run of its rivals, with only a 43% gain in recent weeks, but it's more than twice the company, he said. He called the company the only investable option, with the greatest ability to expand.

In the office supply business, size does matter, and Staples has been able to take advantage of its struggling competitors. On just about every metric, Cramer said, Staples has outperformed the competition.

Cramer said Staples is worth every bit of the premium its share price receives.

An Alluring Dividend

"The conventional wisdom is wrong, Caterpillar is a buy," said Cramer. He said that despite lower earnings estimates and a stock price that's been cut in half, the time is right to buy


(CAT) - Get Caterpillar Inc. Report


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Cramer called Caterpillar another "accidental high-yielder," a stock whose share price has gotten so low that it begs to be bought on its dividend alone. With a 4% dividend yield, Cramer said he's a buyer of Cat, and if the yield rises to 4.5% or 5%, he'd buy even more.

Cramer said there's simply a disconnect between the Wall Street analysts and Caterpillar's management. While the analysts are slashing estimates and expressing concerns about a rising dollar and the company's exposure to the energy and housing sectors, Cat's management expects 2009 revenues to be flat and sees the housing market stabilizing.

"The analysts are behind the curve," said Cramer. The stock has already been cut in half and already reflects all of the bad news, he said. The dividend yield, however, pays investors to wait while the analysts are proved wrong.

Cramer also called the Illinois-based Caterpillar an excellent play on an Obama presidency.

Outrage of the Day

In this segment, Cramer took aim at the U.S. Treasury Department, who earlier today leaked that

CIT Group

(CIT) - Get CIT Group Inc. Report

may be next on the short list of firms to receive federal bailout money.

Cramer said CIT was grossly undeserving of the government's assistance, adding Treasury's announcement of its intentions the ultimate in socialist capitalism.

Lightning Round

Cramer was bullish on

Granite Construction

(GVA) - Get Granite Construction Incorporated Report


Cisco Systems

(CSCO) - Get Cisco Systems Inc. Report


JPMorgan Chase

(JPM) - Get JP Morgan Chase & Co. Report


Bristol-Myers Squibb

(BMY) - Get Bristol-Myers Squibb Company Report


Morgan Stanley

(MS) - Get Morgan Stanley Report


Cramer was bearish on

Alcatel Lucent




(AB) - Get AllianceBernstein Holding L.P. Units Report


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

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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 JPMorgan, Bristol-Myers Squibb, Morgan Stanley.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 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, 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, 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 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, 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.