Cramer's 'Mad Money' Recap: Royal Philips Welcome - TheStreet

Click here for an archive of Cramer's "Mad Money" recaps.

"If you want to make money right now, you need to be a true international pimp," Jim Cramer told viewers of his "Mad Money" TV show Monday.

"What's hot right now overseas?" he asked. "Europe."

Every day this week, Cramer is dedicating a segment of his show to finding his best European stocks, he said. The continent is red hot right now, and it's the right time for investors to get into these stocks, he said.

Cramer said that the European stocks he'll be mentioning this week are ones people should consider getting into. They are unlike Europe exchange-traded funds, which Cramer called "useless."

He said he likes to focus on companies, rather than ETFs, on his show, because with ETFs people don't just get best-of-breed European companies -- they also get "Eurotrash."

Cramer traveled to the Netherlands and named

Royal Philips Electronics

(PHG) - Get Report

as his first foreign buy. PHG, a "giant" electronics company, is a stock no one cared about a few years back. But now "it cannot be beaten," Cramer said.

In fact, right now he estimates that PHG is worth 20% more than its current price of $43.75. The company has four major conglomerate businesses and four major unconsolidated investments, Cramer said. The sum of its parts, he continued, is greater than the whole.

Not only is PHG's medical division great, but in addition, its service segment is growing, and it's a global leader in lighting systems, Cramer said. Many of PHG's lighting products save energy, making it a green play, as well.

PHG is a stock he wants to own, Cramer said. But he stressed that when buying, viewers should use limit orders.

Image placeholder title

Aero Bull Ride

A new way to ride the global bull market of aerospace is with a stock called

Woodward Governor


, Cramer told viewers.

Although many people may not have heard of it before, Woodward is not a new company, Cramer said. "It's just not that big yet."

But Cramer said that the stock's on his radar because it's doubled in the last two years, and he believes it's not done going up.

Last quarter, Woodward, which Cramer said is like a combination of


(HON) - Get Report


Johnson Controls

(JCI) - Get Report

, "crushed" its earnings estimates and guided up for the year.

Though Woodward is "kicking butt" and firing on all cylinders, it is "criminally undervalued," Cramer said.

The company manufactures systems and parts for aircraft engines, turbines and power generators, and its customers are manufacturers in the power generation and aerospace sectors, he said.

"You don't want to miss out on the action even if you just heard of it now," Cramer said. He recommended that investors use limit orders to buy Woodward and cautioned them not to overpay for the stock.

All About the Breakup

Market players should take note of

American Standard


, which reports earnings Wednesday, Cramer said.

"Forget the quarter," he said. Instead, Cramer suggested that people pay attention to the fact that the company is breaking up. According to Cramer, investors should get into stocks before they break up.

At the end of this month, American Standard has plans to spin off its vehicle systems business. If people buy the stock now, Cramer said, then by the time this spinoff takes place, they could see a quick $4 gain. And longer-term, ASD could go much higher, Cramer said.

Further, when ASD sells its kitchen and bath business and renames itself Trane, it will be left with only its heating and air-conditioning businesses. These three separate businesses, Cramer said, will be potential takeover targets on their own.

But because tax law will not allow the companies to be taken over right away, they should trade a premium before they are bought out, he said.

He recommended getting into ASD before the breakup happens at the end of the month. Buy half the position before Wednesday's report, he said, and put on the other half after.

Power Play

Bruce Williamson,



chairman and CEO, joined Cramer on his show and talked about the difficulty of building power plants.

What's happening, the CEO said, is that power demand is moving up and supply is staying the same -- or not going up at the same pace. Therefore, Williamson expects to see "rising value and rising economic performance" from plants that are on the ground, he said.

Cramer called Williamson a "moneymaker" and said that Dynegy should be valued not in the near term but rather on the price of all its power plants. Then "you'll get a much higher price," he said.

To view Cramer's interview with Bruce Williamson, please click here.

Lightning Round

Cramer was bullish on


(AGN) - Get Report





Synchronoss Technologies

(SNCR) - Get Report


Level 3 Communications




(WMT) - Get Report


Time Warner







(CELG) - Get Report


Nastech Pharmaceutical



Cramer was bearish on


(TGT) - Get Report


Ryanair Holdings

(RYAAY) - Get Report





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


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

clicking here


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