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) -- "Owning a home could be making comeback," Jim Cramer announced to his

"Mad Money"

TV show viewers Monday. He said the impact of housing is now palpable in the markets and it's likely to stay that way for years to come.

Cramer explained that while lingering problems in Europe and rising gasoline prices are a still a concern for the markets, consumer spending is what has been driving the markets as of late.

He said consumers are dining out more often, as evidenced by

Darden Restaurants

(DRI) - Get Darden Restaurants, Inc. Report

strong earnings. Cramer said consumers are driving to destinations like

Walt Disney

(DIS) - Get Walt Disney Company Report

, as noted by today's

Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. Report

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TheStreet Recommends

upgrade of the company. But most importantly, consumers are spending on their homes.

Cramer said that the home improvement is on fire, propelling


(LOW) - Get Lowe's Companies, Inc. Report

to blow away the estimates. Pending home sales for January were also on the rise, as for the first time in five years, spending money on a home might not be a losing proposition.

Playing the recovery in house shouldn't be done via the home builders however, cautioned Cramer, it should be done by all of the ancillary plays, stocks like Lowes and rival

Home Depot

(HD) - Get Home Depot, Inc. Report

, also with

Stanley Black & Decker

(SWK) - Get Stanley Black & Decker, Inc. Report

, a stock which Cramer owns for his charitable trust,

Action Alerts PLUS.

Cramer also gave the nod to other home-related plays like


(WHR) - Get Whirlpool Corporation Report


Pier 1 Imports

(PIR) - Get n.a. Report

, along with mortgage centric banks like

Wells Fargo

(WFC) - Get Wells Fargo & Company Report

and even

Bank of America

(BAC) - Get Bank of America Corp Report


Restructing Post Mortem

When an iconic company announces a major restructuring, investors need to ask "what went wrong," Cramer told viewers, as he examined the plight of the iconic consumer packaged goods company,

Procter & Gamble

(PG) - Get Procter & Gamble Company Report


Despite increasing revenues by 5% over the past few years, Procter has been unable to boost earnings per share growth, causing the company to announce a major restructuring effort that will trim over 5,600 jobs and take $1 billion out of the company's marketing efforts. But will these efforts be enough to turn the consumer giant around? Cramer said probably not.

Cramer explained that the Procter of today is no longer the best of breed giant it once was. He said there is no culture of cost-cutting at the company, calling into question whether it can deliver on its promises.

But the real issue for Procter is that of the entire consumer packaged goods sector, which has been in a tailspin as birth rates in the U.S. fall and the group sees increased competition from private label products along with higher commodity prices.

In a perfect world, Procter would simply raise prices to offset rising costs, said Cramer, but with so many shoppers sticking with private label alternatives, raising prices is no longer an option. He said the same sentiments can be found on the conference calls of


(KMB) - Get Kimberly-Clark Corporation Report



(CLX) - Get Clorox Company Report

and even

General Mills

(GIS) - Get General Mills, Inc. Report


Cramer also called into question Procter's decision to trim its marketing efforts. Marketing differentiation is one of the few things branded products have going for them, he said, cutting back those efforts could have serious consequences.

Cramer said that's why he's buying


(K) - Get Kellogg Company Report

for his Action Alerts PLUS portfolio. He said Kellogg's acquisition of Pringles, from Procter, is exactly what a company should be doing to reinvigorate its growth. In the case of Kellogg's, Cramer said the estimates are too low, the exact opposite of the estimates for Procter.

5 Oil Trades

Investors looking to play the rising price of crude oil have lots of companies from which to choose, Cramer told viewers, as he ran down five oil stocks, starting with the most secure and ending with the most risky. He told investors to match up their own personal risk profile with the stock that's most right for them.

First, on the safe side, Cramer recommended


(COP) - Get ConocoPhillips Report

, an Action Alerts PLUS holding that sports a 3.4% yield. Cramer said this shareholder-friendly company is breaking itself up to unlock value and has big catalysts on the horizon.

Second, Cramer suggested


(SLB) - Get Schlumberger NV Report

, another Action Alerts PLUS name. He said this oil service company derives 80% of its revenues from outside the U.S. and is a bargain at just 14 times earnings with a 30% growth rate.

Cramer's third recommendation was

EOG Resources

(EOG) - Get EOG Resources, Inc. Report

, the top producer in both the Bakken and Eagle Ford oil shale regions. He said this company has bullish prospects and is growing its production and reserves.

Fourth, Cramer recommended

National Oilwell Varco

(NOV) - Get NOV Inc. Report

, a company with 70% market share in the drilling equipment business. He said this company needs oil prices to be high and stay high in order to thrive. He said it is not for the squeamish investor, but is still a great company with a promising future.

Finally, as a speculative play, Cramer suggested

Magnum Hunter


, a literal drilling machine that's increased production by 455% and boosted its proven reserves by 44% in just its most recent quarter.

Winning Strategy

In the "Executive Decision" segment, Cramer sat down with David Wenner, president and CEO of

B&G Foods

(BGS) - Get B&G Foods, Inc. Report

, one of the few consumer foods companies that Cramer said are worth owning.

Wenner said that B&G is very comfortable with its dividend exposure due to the fact that the company always does acquisitions that are accretive to earnings. He said his company specializes in buying under-invested brands, like Mrs Dash, which has not seen any new products over the past three years. Wenner said that with brands like Mrs Dash, B&G can launch new products, expand distribution and grow.

When asked about commodity costs, Wenner explained that B&G does not have as much exposure as other food companies. He said that commodity costs rose 1.5% last year and will grow another 2% this year, but the company has already offset those costs with price increases. Wenner noted that for many of B&G's brands, like Cream of Wheat, there are loyal followings of customers, which make price increases less of a factor.

Also providing B&G with a tailwind is the company's aggressive move into the dollar store segment. Wenner said that B&G didn't necessarily notice the trend before the competition, but given the company's smaller size, it was able to move more quickly into the segment with much success.

Wenner also discussed how B&G does much of the research in-house. He also said the company uses economies of scale when buying its packaging, which also offsets rising costs in that area of its business.

Cramer said that B&G continues to be a winner for both consumers and shareholders. He continued his recommendation.

Lightning Round

Cramer was bullish on

Panera Bread



Chipotle Mexican Grill

(CMG) - Get Chipotle Mexican Grill, Inc. Report


Yum! Brands

(YUM) - Get Yum! Brands, Inc. Report


Kinder Morgan Energy Partners



Beckman Coulter



Cramer was bearish on

Bravo Brio Restaurant



Fidelity National Financial

(FNF) - Get Fidelity National Financial, Inc. - FNF Group Report


Frontier Communications

(FTR) - Get Frontier Communications Corp. Report


Strayer Education

(STRA) - Get Strategic Education, Inc. Report



(HFC) - Get HollyFrontier Corporation Report


Dividend Debate

In his "No Huddle Offense" segment, Cramer highlighted the differences between


(AAPL) - Get Apple Inc. Report

, an Action Alerts PLUS holding, and

Berkshire Hathaway


, explaining why Apple should not pay a dividend, but Berkshire should.

Cramer said there's far too much chatter about Apple and what the company "should be doing" regarding a dividend or a stock split. Cramer said frankly "I don't care about a dividend," since Apple is a growth stock and is adding value for shareholders simply by continuing with what it's doing.

Berkshire, on the other hand, has little earnings momentum, said Cramer, and is more of a value stock than a growth stock at this point. Thus Cramer said disagrees with Buffett's decision to focus on the company's book value rather than paying its shareholders a dividend while they wait for growth to pick up once again.

--Written by Scott Rutt in Washington, D.C.

To contact the writer of this article, click here:

Scott Rutt






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At the time of publication, Cramer was long Stanley Black & Decker, Kelloggs, Conoco-Phillips, Schlumberger, Apple.

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.