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) -- The market will rally a little bit from here until the short sellers return, Jim Cramer told viewers of his

"Mad Money"

TV show Monday.

Cramer said today's midday rally made perfect sense, as stocks have already been beaten and crushed so low that simply can't go much lower. "There's nothing worth selling at these levels," he said. And the chatter of a second market crash? Cramer said that's almost always a sign we're nearing a bottom.

So with valuations where they are, Cramer said a small "rebuilding" rally is very likely, with the hardest hit stocks likely to bounce the most. He said that with low interest rates, gridlock in Washington, DC, and so many mid to high-yielding stocks out there, the market will be hard pressed not to rally from these levels. But what then?

Cramer said the short sellers will return for another round, as they often do in a range bound market. Any stocks that are bought now, he said, will have to be sold later when they arrive. He said the only stocks the shorts aren't likely to attack are those paying high dividends, those likely to be taken over and those that do well with low interest rates.

Cramer said normally the stocks that fit this bill are the financials and the tech stocks, which combined make up 35% of the

S&P 500.

But with banks under pressure from the

Federal Reserve,

Cramer said they aren't likely to merge or payout dividends, leaving them vulnerable to the shorts.

Then there's technology, said Cramer, which also seems to be lacking protection from the shorts as of late. Tech stocks, he said, are now also squarely in the sights of the shorts, adding investors need to be careful there too.

A Bargain Play

"Sometimes the market gets it wrong," Cramer told viewers, as he once again recommended

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TheStreet Recommends

Owens Corning

(OC) - Get Owens Corning Inc New Report

, a stock that got crushed by 18% after it reported "disappointing" quarterly results.

Cramer said the markets are giving us a bargain in Owens Corning, with the stock now down 29% from its highs. Cramer's last recommendation of Owens Corning on Nov. 19, 2009 netted a 23% gain before he advised selling it on May 20.

Cramer said Owens Corning missed estimates by three cents a share when it last reported, sending the stock plunging. But, he noted, all of the company's businesses are performing well, and that will translate into higher profits going forward.

Composite materials make up 35% of Owens' business, said Cramer, and that segment is growing at 25%, with revenue up 26% from year ago levels. He said composites, which are used in everything from autos to wind turbine blades, are not dependent on the U.S., with 65% of sales coming from overseas.

Insulation and roofing makes up another big chunk of Owens' business, and that segment is growing at 16% year over year, said Cramer. While this segment did lose money in the most recent quarter, Cramer said the cost issues should be resolved in the next three to four months.

Trading at just 9.8 times earnings, Cramer said Owens Corning is a steal given that it's expected to grow at 30% in 2011. He said the company's growth, coupled with its 9% stock buyback program, makes the stock with the Pink Panther mascot a very compelling offer.

Best of Breed

"It's always worth paying up for the best of breed," Cramer told viewers, as he pitted the high-end grocery chain

Whole Foods

( WFMI) against the more modest




Cramer said while both companies reported inline earnings this quarter, Whole Foods is clearly the best of breed winner. He said Safeway is merely an ordinary grocer, offering nothing proprietary, and therefore must compete solely on value. Whole Foods, however, is what Cramer described as an aspirational brand, with customers willing to pay more for better foods they feels are better for them.

Safeway posted a sales increase of just 0.6% in the quarter and lowered full year guidance, while Whole Foods saw a 52% increase in earnings per share and raised its guidance. Cramer said while Whole Foods may not have met some of Wall Street's expectations, it has solid revenue growth of 10% to 13% and same-store sales growth of 8.8%.

Looking at competition, Cramer said Safeway sees increased competition from companies like


(COST) - Get Costco Wholesale Corporation Report



(TGT) - Get Target Corporation Report



(WMT) - Get Walmart Inc. Report

, while Whole Foods really only competes with the privately held

Trader Joe's


When comparing these companies, said Cramer, investors must always factor in the growth rate. He said while Safeway trades at 12 times earnings, it has only a 9% growth rate. While Whole Foods, trading at 22 times earnings, has an 18% growth rate. Comparing apples to apples, Cramer said Safeway trades at 1.3 times its growth, while Whole Foods trades at just 1.2 times growth.

Mad Mail

Cramer followed up on


(NANO) - Get Nanometrics Incorporated Report

, a small semiconductor equipment maker that stumped him in an earlier Lightning Round. He said while Nanometrics is a legitimate company that's taking market share, the company is simply too small to recommend.

Cramer told a viewer that

Navios Maritime

(NM) - Get Navios Maritime Holdings Inc. Report

is OK, but that he prefers


(DRYS) - Get DryShips Inc. Report


Diana Shipping

(DSX) - Get Diana Shipping inc. Report


Cramer told another viewer that everything is A-OK at

Walt Disney

(DIS) - Get The Walt Disney Company Report



(AAPL) - Get Apple Inc. Report

, a stock which he owns for his charitable trust,

Action Alerts PLUS.

Cramer told another viewer that things are definitely not OK at the biotech firm


(GERN) - Get Geron Corporation Report

, and he's a seller of that name.

Lightning Round

Cramer was bullish on

Las Vegas Sands

(LVS) - Get Las Vegas Sands Corp. Report


Wynn Resorts

(WYNN) - Get Wynn Resorts Limited Report


Hudson City Bancorp



Jabil Circuit

(JBL) - Get Jabil Inc. Report


Bank of America

(BAC) - Get Bank of America Corporation Report


He was bearish on

Western Digital

(WDC) - Get Western Digital Corporation Report


Veeco Instruments

(VECO) - Get Veeco Instruments Inc. Report


-- 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

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.