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NEW YORK (
) -- "The turn in the economy is happening," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday.
"It's right here, right in front of you," he continued, and while it may not be visible to everyone, the time to profit from it is now.
Cramer said he understands why investors don't feel like things are getting better. People are still worried about their jobs and the value of their homes, he said. People are still seeing lots of local unemployment, and are fretting over the need for tax increases to balance both state and local budgets.
Yet Cramer warned that while things might not seem better to your individual economy, the stock market is looking ahead. He said the markets are never late, they're always early. He said if investors wait to make their move, they'll miss the move. He said there are three trends that investors just can't ignore.
First, that new jobs are coming. He said demand is building for new goods in retail, oil and technology, he noted, and the government is also going on a hiring binge. These bullish trends will be seen in the unemployment rate soon, he said.
Second, there's a housing shortage coming in 2011. Cramer said stocks like
, a stock which he owns for his charitable trust,
Action Alerts PLUS, are all screaming that the turn in housing is at hand.
Finally, Cramer made the bold call that the projected budget deficit will not be as bad as many economists believe. He said that the economy is stronger than most people realize, and that will translate into more tax revenues in the future.
Cramer said because of these trends, investors can't wait to get back into stocks. The end of the recession is here, he said, don't miss it.
More Room to Grow
In the "Executive Decision" segment, Cramer once again spoke with Howard Levine, chairman and CEO of
, a stock which Cramer last recommended on Nov. 6. Since shares of Family Dollar have risen 33%.
Levine refuted the notion that discount stores do poorly during economic recoveries. He said that history has shown that Family Dollar does well coming out of a recession, thanks in part to the company's consistent re-investment back into their business.
Levine said he feels great about their business. He said Family Dollar is growing its private label and discretionary categories, and even its hard hit apparel category is seeing some stabilization. Coupled with productivity improvements, Levine said Family Dollar is a great investment, which is why the company continues its stock buyback program.
When asked about expansion into California, Levine said Family Dollar has plans to expand there, but won't make the move until it's confident it has the infrastructure in place to support it. He said he expects great things from California when they're ready.
Cramer said Family Dollar's stock is not done going higher, and he'd still be a buyer.
Ready to Roar
In the "Off The Charts" segment, Cramer went head to head with colleague Dan Fitzpatrick over the chart of
( HOTT), the least loved teen retailer which may be finally ready to make its move.
According to Fitzpatrick, shares of Hot Topic are ready to roar higher, thanks to last week's announcement of a $1 per share special dividend and a regular dividend going forward. Shares gapped higher by 18% on the announcement, but instead of drifting lower, they instead exhibited a pennant pattern, stabilizing at the higher levels, and signaling the stock is being aggressively bought.
Turning to the fundamentals, Cramer said Hot Topic management drew a line in the sand with the announcement of its dividend, which now yields 3.3%. He said dividends are the ultimate sign of strength, and signals a genuine turn in the company's fortunes.
Cramer noted that Hot Topic is turning itself around, transitioning away from trendy movie-related merchandise in favor of building its core brands. The company's "Torrid" chain of plus size apparel stores is also finding performing well.
Cramer said with inventories down 4% and $2.77 per share in cash on the books, Hot Topic is a stock who's time has finally come.
Cramer sat down with Bruce Vincent, president and secretary of
, a hybrid oil and natural gas driller with 58% oil and 42% natural gas production.
Vincent attributed Swift's 250% rise in share price to new technology, which has allowed the company to unlock tremendous value in its legacy assets that were long forgotten. He said the company's land in south Texas' Eagle Ford region is now highly valuable, as the new drilling techniques have allowed for deeper drilling than ever before.
Eagle Ford is made even more valuable, said Vincent, thanks to Texas' existing oil and gas infrastructure, which allows gas to be quickly brought to market.
Vincent agreed with Cramer that natural gas is the fuel of the future. He said with more than a 100-year supply in the U.S., natural gas has to play a key role in our country's future.
Vincent said the natural gas industry has two problems. First, the industry must convince policy makers to advocate the use of the fuel to help spark investment in infrastructure. Second, the industry must convince end users that the days of price volatility is over, and a steady, reliable supply of gas is now available in huge quantities.
Cramer was bullish on
Research In Motion
He was bearish on
Cramer said that
had a beautiful number and he'd be a buyer up to $25 a share. He also said that railroad
also reported very strong results
-- Written by Scott Rutt in Washington D.C.
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At the time of publication, Cramer was long Home Depot.
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."
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