Click here for an archive of Cramer's "Mad Money" recaps.
"Most people don't even know the difference between a trade and an investment," Jim Cramer told viewers of his "Mad Money" TV show Monday. "So much for conventional wisdom -- let's take a look at reality," he said.
The way of thinking that casts trading as a "risky" undertaking is a legacy left over from when there was "more friction" in the system due to higher commissions and taxes, Cramer said. Buying and selling often was costly, and that's what gave trading a "bad name."
"We're in a brave new world now with much lower commissions, and ... capital gains taxes are as low as I've ever seen them," Cramer said. "Buy and hold just does not cut it anymore."
Cramer recommended that viewers get "active to be responsible." He said, "You have to do your homework, and you have to take those profits while you've still got them."
The stocks he recommends on "Mad Money" aren't meant to be held for "eternity," he said. Rather, viewers "should try to buy as low as possible and sell high."
"That doesn't make you a trader," he said. "It makes you an intelligent manager of your own money."
A Marvell Idea in Semis
According to Cramer, the message from Wall Street is: "Trading is bad. Investing is good." But, Cramer said, "Stocks aren't trades or investments," calling the distinction, based on the amount of time you own a stock, "meaningless."
On Friday, J.P. Morgan and Deutsche Bank both upgraded semiconductor stocks to buy status, but Cramer said "they don't think these stocks will actually turn until later this year."
Those reports, he said, are written for big institutional investors -- not for the viewers of Cramer's show. "You've got more flexibility," he said. "What you really want to do," he continued, is "wait for the stocks to come down."
He said he believes the semis have another bad quarter left. His recommendation is for
, "the one that will probably have the single worst quarter of the semis that I follow." Cramer owns Marvell for his
Action Alerts PLUS charitable trust.
"Marvell is not a trade," Cramer said. "It's not an investment. It's just a good idea."
The company reports earnings on Feb. 26, and Cramer predicts the results will be "nasty-looking."
"I would try to get into Marvell at a decent price before it reports on the 26th," he said. "Below 18 is a decent price." The stock closed Monday at $17.91.
"Marvell Tech is not a trade," Cramer reminded viewers. On a trade, you'd wait and buy on a positive catalyst; with Marvell, he urged viewers to "do your homework ... decide if you like the stock, and then wait for some weakness."
"How you buy it, when you sell it -- these things are all critical," Cramer said, "and you need to work them out yourself. ... Stop thinking of short-term investments as trades with all the associated stigma and evaluate them based on their merits."
Real Rigged Potential
"Short-term focus," said Cramer, is the Achilles' heel of Wall Street. Short-term focus, while not inherently problematic, becomes a problem when it "clouds the bigger picture," he said. Whereas the Street has "abandoned" oil stocks, Cramer's long-term view still sees potential there, particularly in
National Oilwell Varco
National Oilwell is the "biggest maker of oil rigs on earth," he said, and it reported an "amazing" quarter last week. It's "really cheap," Cramer said, and the company has "practically ... a monopoly on making deep-water rigs. That's where the money is."
Plus, Cramer said, the "real buyer could be another company." This morning,
pay $97 a share in cash for
, another stock the Street didn't like, he said. Cramer believes something similar could happen to National Oilwell.
"Buy National Oilwell while it's still cheap ... and buy it before it could get a takeover bid," Cramer said.
In response to a caller, Cramer said that
could be another
. Cramer, who owns Sears for his charitable trust, hasn't sold a share, but he said he would sell if he saw any "deviation from ... the Berkshire plan."
Cramer reminded viewers that he couldn't recommend stocks on his show "if the fundamentals are deteriorating."
fundamentals, he said, are still deteriorating. "I keep waiting till the estimates get so low that they can't deteriorate further," he said. When that happens, "I will back up the truck."
Another caller asked Cramer if the sales of one game could affect a video-game maker stock. According to Cramer, one game's sales couldn't impact the price of a stock of a $15 billion company such as
, which has a game coming out later this month, is a $2 billion company. That game's sales might make a difference, Cramer said, "but the stock is not cheap," and he did not recommend it.
In the show's "Mad Mail" segment, Cramer said he agreed with one mailer's son that
"pizza tastes good" and said that "the worst is over." "Domino's is a good chain," Cramer said, and he told the viewer to hold on to it.
Cramer told another mailer that he believes
, a stock he owns for Action Alerts PLUS, is "terrific" and that
"is still radically overpriced."
Cramer was bullish on
Cramer was bearish on
Helmerich & Payne
New Century Financial
For more of Cramer's insights during the Lightning Round, click here
Want more Cramer? Check out Jim's rules and commandments for investing from his popular book by
At the time of publication, Cramer was long Diageo, Marvell Technology, Sears Holdings and Transocean.
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.