Cramer's 'Mad Money' Recap: Rich Stocks Get Richer - TheStreet

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Stocks that go to $80 a share in a bull market tend to go to $120, as long as the bull market keeps going, Jim Cramer told viewers of his "Mad Money" TV show Monday.

Although this thesis might seem "totally bogus," Cramer said he has the empirical data to prove it is correct.

Larry Tisch, one of the great investment minds of his generation, was mystified by the "runaway bull market" of the 1980s, Cramer said. Tisch liked "out-of-favor assets" in which he could take a longer-term view and make billions, but at the same time, he didn't like to miss out on easy money, Cramer said.

When Cramer was young, Tisch asked him what he liked in the market. Cramer told Tisch at the time that stocks were in a "dramatic" runaway bull market and that people had to be in the most-obvious stocks because they were the ones going higher.

He said he told Tisch he liked stocks that were at $80, and when Tisch asked why, Cramer told him that stocks that go to $80 go to $100. Further, if they go to $100, they tend to go to $120.

Even though Tisch laughed at Cramer then, the next time Tisch saw him, Tisch told Cramer that he had been keeping track of his thesis and it was working.

Leading stocks attract money, and money sends them higher, cementing their status as leaders, Cramer explained. This keeps the virtuous circle going.

Bull Story

Right now, we're in a runaway bull market, and Cramer believes his rule of thumb in 1984 should work just as good now as it did then. In fact, looking at just last year, it seems his theory was proven right in the

S&P 500

.

Cramer urged viewers not to assume that

Boeing

(BA) - Get Report

is played out. All the good news is not priced in yet, Cramer said. The stock is a leader and "has the potential to climb to $120." Boeing closed at $99.90 on Monday.

On "Mad Money" there is no distinction between "hard-earned money" and "easy money," Cramer told viewers. "A win is a win."

However, his $80 stock rule doesn't mean people should skip out on doing their homework, he said. Instead, when using this thesis, people should do even more homework.

CAT's All That

Caterpillar

(CAT) - Get Report

, said Cramer, is another stock he sees going to $120 as long as the bull market sticks around. Caterpillar, which Cramer owns for his charitable trust,

Action Alerts PLUS, closed at $79.83 Monday.

Image placeholder title

Right now Caterpillar is at the low end of the leadership range, but like Boeing, it belongs to one of Cramer's five wild bull markets, he said. The analyst who covers Caterpillar for UBS downgraded the stock last week, but that was a wrong move, Cramer said. "This guy obviously didn't get the $80-to-$120 memo."

Moreover, although Caterpillar may look expensive, it's actually cheap, he said. Plus, it has a lot of exposure to the rest of the world, including serious growth potential in China. With its China business, Caterpillar should stay "immune" to its crummy business in the U.S, Cramer said.

Uncertainty is keeping people out of the stock, but Caterpillar reminds Cramer of the winning stock

Cummins

(CMI) - Get Report

when it was at $72, he said. Investors should consider getting in.

Oil Change

In an article titled "This Land Was My Land," published last month in

The New York Times

, columnist Timothy Egan writes about how the Bureau of Land Management was told early on in the Bush years to make drilling for oil and gas its main priority, Cramer said.

People can be like Egan and "bemoan the state of things" or be Democrats and seek to change things -- or they can be like Cramer and find out who is benefiting from this. Because when the environment is compromised, someone is always benefiting, Cramer said.

Drillers such as

Ultra Petroleum

(UPL)

and

Questar

(STR)

have been held back because they aren't allowed to drill throughout the year, Cramer said. But now, with a decision of year-round drilling looming, these two are cheap, he said.

This approval should give UPL and STR the potential to take off, Cramer said. Of the two, UPL is more speculative, as it has exposure to China and not too much other international exposure, Cramer pointed out. Drilling times have improved, and now it's time to consider getting into STR or UPL.

Aecom Has Buying Power

John Dionisio, president and CEO of

Aecom Technology

(ACM) - Get Report

, joined Cramer on his show, where the chief executive told viewers that ACM has been in the environmental business for 100 years.

A total of 40% of ACM's revenue is generated outside the U.S., and as the technical services company is involved in an industry in which there is major consolidation activity, Dionisio reassured Cramer that there are plenty of companies left for ACM to buy.

Cramer said people "need" a stock such as ACM, and he told viewers to consider getting in.

To view Cramer's interview with John Dionisio, please click here.

Lightning Round

Cramer was bullish on

Eagle Bulk Shipping

(EGLE) - Get Report

,

Crocs

(CROX) - Get Report

,

Under Armour

(UA) - Get Report

,

Verizon

(VZ) - Get Report

,

Morgan Stanley

(MS) - Get Report

,

WPP Group

(WPPGY)

,

Barnes Group

(B) - Get Report

,

BE Aerospace

(BEAV)

,

Cnooc

(CEO) - Get Report

,

PetroChina

(PTR) - Get Report

,

ValueClick

(VCLK)

,

Goldman Sachs

(GS) - Get Report

,

Nastech Pharmaceutical

(NSTK)

,

Celgene

(CELG) - Get Report

and

Helmerich & Payne

(HP) - Get Report

.

Cramer was bearish on

Starbucks

(SBUX) - Get Report

,

Heelys

(HLYS)

,

Smith Micro Software

(SMSI) - Get Report

,

Discover Financial Services

(DFS) - Get Report

and

The Blackstone Group

(BX) - Get Report

.

Sudden Death

During the "Sudden Death" round, Cramer was bullish on

Chesapeake Energy

(CHK) - Get Report

. He was bearish on

Boston Scientific

(BSX) - Get Report

and

Align Technology

(ALGN) - Get Report

.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by

clicking here

.

For more of Cramer's insights during the Lightning Round, click here

.

At the time of publication, Cramer was long Caterpillar and 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."

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.