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) -- "There are a lot of reasons why this market may not be done going down but those reasons aren't the ones you think," Jim Cramer told viewers of his

"Mad Money"

TV show Wednesday.

Cramer said it's not the new and existing home sales that we need to worry about, nor is it a slowdown in manufacturing. The truth is, he said, that housing and manufacturing just aren't big parts of our economy any more. What is important, however, is the litany of smaller worries that continue to plague investors.

Cramer once again blamed President Obama's undeclared war on stocks for many of these worries. "Confidence is what leadership is all about," he said, and confidence is what the market is sorely lacking. Cramer cited the following worries.

No. 1. Capital gains taxes. Cramer said no one knows what their tax rate on investments will be next year. Given that uncertainty, it's no wonder investors are locking in profits now.

No. 2. The costs of the new health care reforms. Cramer said no one knows the true cost of health care anymore, and that scares businesses into not hiring.

3. Financial reforms. Cramer said no one knows what the 2,000 page financial reforms will mean for the banks.

4. Housing prices. Cramer said no one knows what their home is worth, especially given the constant expiring and renewing and amending of government programs.

5. Obama's pro-labor agenda. Cramer said no one knows if Obama's card check union plan will resurface, or his cap-and-trade initiatives, or new taxes on overseas earnings.

Cramer said given how much we don't know about the president's plans, the stock market can't rally and could in fact drift down to Dow 9,300. Investors shouldn't be recklessly buying, said Cramer.

Instead, he said that should be buying high quality dividend stocks on the dips, stocks like


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TheStreet Recommends

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United Technologies

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Sleeper Stock

Investors looking for new investing ideas need to consult the 52-week high list, Cramer told viewers. That's where he found the little known stock of



, a company with a conglomerate of filtration and separation businesses.

Cramer said this sleeper stock is firing on all cylinders. The company delivered a nine-cent-a-share earnings beat when it last reported on a 27% boost in revenues. Polypore's stellar results mark the fourth straight quarter the company has beaten Wall Street's expectations.

So what does Polypore do? It makes materials for everything from lead acid and lithium ion batteries, as well as water filters and filters used in everything from power plants to blood dialysis. Cramer said the beauty of all these industries is that they're oligopolies, with high barriers to entry.

Polypore saw revenues of its lead acid battery business up 22% for the quarter, with 60% of that revenue coming from recurring sales. Cramer said Polypore is also the No. 3 player in lithium ion battery components, a business with revenues up 57%.

Cramer said he'd use the current market weakness to snatch up some Polypore before it continues its rocket run higher.

M&A Play

"Mergers and acquisitions are back in a big way," Cramer told viewers. From the mega deals of

BHP Billiton


(BHP) - Get BHP Group Limited American Depositary Shares (Each representing two) Report

bid for






(INTC) - Get Intel Corporation Report

bid for


( MFE), to the host of smaller deals like

First Niagara



New Alliance

( NAL), merger mania is back.

Cramer said while we may not know which companies are going to be getting taken over, we do know which company they'll be consulting with to do the deal, and that company is


(LAZ) - Get Lazard LTD. LTD. Class A Report

, an advisory firm that specializes in mergers and acquisitions.

Cramer said Lazard is the best way to play merger mania because mergers represent 29% of Lazard's revenue, far more than any other investment bank out there. The company's backlog rose to $280 million earlier this year, up 64% from December, and continues to rise.

Cramer said mergers clearly have a long way to go, as they need to jump 79% just to hit 2009 levels. This leaves a lot of upside for Lazard, whose shares are down 12% on the year. Cramer said while the analysts give Lazard a $36 price target, he feels the estimates are far too low, and the company could earn $2.45 a share. Given a multiple a 20, Cramer said his target is $49 a share.

Am I Diversified?

Cramer spoke with callers to see if their portfolios have what it takes. The first caller's portfolio included:


(AAPL) - Get Apple Inc. Report


Goldman Sachs

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



(MO) - Get Altria Group Inc. Report


Phillip Morris

(PM) - Get Philip Morris International Inc Report


Kinder Morgan Energy Partners



Cramer said while Altria and Phillip Morris were once one company, you can't hold onto both, and he'd sell one for a telco like


(T) - Get AT&T Inc. Report


The second caller's top holdings included

United Technologies

(UTX) - Get n.a. Report



(PFE) - Get Pfizer Inc. Report



(VZ) - Get Verizon Communications Inc. Report


Yum! Brands

(YUM) - Get Yum! Brands Inc. Report



(MSFT) - Get Microsoft Corporation Report


Cramer said this portfolio was beautifully diversified.

Lightning Round

Cramer was bullish on

Total SA

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TIBCO Software



J Crew

( JCG) and

Diana Shipping

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He was bearish on


(BP) - Get BP p.l.c. Report



(SOL) - Get Renesola Ltd. ADR Report



(DRYS) - Get DryShips Inc. Report


Intuitive Surgical

(ISRG) - Get Intuitive Surgical Inc. Report


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

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Scott Rutt.

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To watch replays of Cramer's video segments, visit the Mad Moneypage on CNBC


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clicking here.

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


At the time of publication, Cramer was long 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.