Search Jim Cramer's Mad Money trading recommendations using ourexclusive Mad Money Stock Screener and watch Jim Cramer's Mad Money Post Game videoexclusively on TheStreet.com.
NEW YORK (
) -- "Pessimism and skepticism are going to the the engines of wealth, not the purveyors of poverty," a philosophical Jim Cramer told the viewers of his "Mad Money" TV show Thursday.
He explained that runaway greed in the markets means that a top is approaching, but a healthy dose of skepticism helps keeps greed in check so that the markets can run higher.
Cramer said that skepticism keeps people from getting carried away, and pessimism gives the markets the fuel it needs to run higher. He listed off six ways the perpetual stream of naysayers is actually helping the market.
First, last week's bogus 1,000 point decline got rid of most of the froth in the market, bringing the highest flying stocks back into line. Second, the decline scared off most of the weak players, leaving only the true believers behind.
Third, that skepticism is cooling off the IPO market. He said a hot IPO market is always a bad thing, as it means investors are ready to buy just about anything. Fourth, the skeptics are worried about lower oil prices, but in fact, cheaper gasoline gives the consumer renewed purchasing power.
Fifth, the pessimism surrounding the International Monetary Fund's ability to fix Europe is trashing the euro. But, he said people fail to realize that the intervention is working, and the IMF will ultimately be successful. In the meantime, there will be opportunities.
Finally, the skepticism surrounding housing is creating fabulous opportunities as well, especially since the data is now showing foreclosures declining for the first time in five years.
Cramer said greed is only good for one thing, and that's ringing the register. But pessimism and skepticism are just what the doctor ordered for a healthy market.
In the Thursday "Sell Block" segment, Cramer said the time has come to sell Chinese search giant
, which is up 227% in the last year, and 27% since Cramer last recommended it on March 23. Cramer explained that Baidu has simply gotten too hot for most investors to handle, but another Chinese search giant is ready to take its place.
Cramer said that
has a fabulous, yet often overlooked, Chinese ecommerce business that now makes the entire company worth a second look.
Yahoo! owns a 44% stake in the Alibaba Group, which makes it a 70% stakeholder in Alibaba.com, a huge business to business marketplace in China that's about half the size of
, yet is sporting 100% growth year over year.
Yahoo's stake in Alibaba also gives it a stake in Alipay, the Paypal of China, which processes $176 million in payments every day, representing 50% of all online payments in the country.
Cramer said that all told, Yahoo's Chinese assets are worth about $2.4 billion to the company and could be worth as much as $10 to $20 billion if taken public as a separate company.
Cramer also said that the company's U.S. assets are nothing to sneeze at. Taking out China and Japan, along with the company's cash on hand, he said Yahoo's U.S. businesses are valued at just $6 billion, a 60% discount to
and a 74% discount to
Cramer said Yahoo's core businesses are worth twice that amount and thinks the stock could reach $20 to $25 a share.
Am I Diversified?
Cramer spoke with callers to see if their portfolios have what it takes. The first caller's portfolio included
Plains All American Pipeline
Cramer said this portfolio was perfectly diversified and well-played.
The second caller's top holdings included
Energy Transfer Partners
Cramer said this was a great bedrock portfolio, but one that could use a little more spice given the caller's age was only 20 years old.
The third caller had
as their top five stocks.
Cramer said this portfolio was fantastic and exactly what he was looking for.
The fourth caller's top stocks were
Cramer said this portfolio was also well played.
Cramer told viewers that
Nordic American Tanker
remains his favorite bulk shipper, while
Plum Creek Timber
is his favorite lumber play with its 7% yield.
Cramer told a viewer that he's not worried about
losing exclusivity of the iPhone. He said those fears are already baked into the price of the stock.
Cramer told other viewers that he'd ring the register on
because the stock has run too high, but he'd continue buying
on the dips and would stick with it.
Cramer was bullish on
Nordic American Tanker
He was bearish on
-- Written by Scott Rutt in Washington D.C.
To watch replays of Cramer's video segments, visit the Mad Moneypage on CNBC
Want more Cramer? Check out Jim's rules and commandments forinvesting from his latest book by
For more of Cramer's insights during the Lightning Round, clickhere
At the time of publication, Cramer was long Apple, MacDonald's, Altria
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.