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NEW YORK (
) -- With the headlines on the European credit woes all over the map, Jim Cramer summed up the situation for the viewers of his "Mad Money" TV show Monday by simply saying, "we're good, they're bad."
Cramer explained that for certain, the U.S. economy is stronger than that of Europe, but that doesn't mean the U.S. can't take a hit if Greece defaults on its debt. He said the Grecian debt is huge, $350 billion, which is larger than the recent crises in Russia and Argentina... combined.
Aren't the Europeans united in preventing a Grecian default? Cramer said in a word, no. He said in order to prevent disaster, Greece needs to drop its interest rates to zero to promote growth. In addition, Cramer said the European Union needs to unite behind one strategy.
Cramer said the good news on the economic landscape is that China appears to be on our side, opting for a soft landing instead of a sharp slowdown in their economy. But even there, said Cramer, the signals are murky.
Cramer said with so much uncertainty, investors can't yet be bullish on the stock market. But on the flip side, he said our markets don't deserve to be down as much as they are either. Even the German stock market, which has more to lose if Greece defaults than we do, is down less than the
In his "Eureka Moment" segment, Cramer reminded viewers that no stock trades in the single digits because things are going well. But in the case of
, both of which received upgrades from Goldman Sachs, these single-digit stocks may be hinting that things
Cramer said upgrades on single-digit stocks are risky for analysts, which is why he believes that things are not only going well for the pair, but really well.
In the case of Sprint, Cramer said the upgrade was mainly triggered by a slowing "churn" rate, which is a measure of how fast the company is losing customers. With a recovering churn rate, Cramer said Sprint once again becomes an attractive takeover target.
Citigroup Cramer Still A Believer
The case for Citigroup is a little harder to decipher, said Cramer. He said the bank is seeing the biggest drop in non-performing loans out of all of the banks, which finally allows analysts to use traditional earnings metrics to value the company. Goldman gave Citigroup a price target of $4.50 a share, but Cramer said that number is conservative, and he likens shares over $5.
Cramer said Citi's main sticking point is the government's aggressive liquidation of its position in the company. How aggressive are they, he asked? And is there a limit below which the government won't sell? These are questions without answers, he said, but the prospects for Citigroup are getting better by the day.
Johnson & Johnson vs. Perrigo
Cramer said he had another epiphany this weekend when visiting his local drugstore. He said the voluntary recall of children's medicines by
Johnson & Johnson
is shaping up to be a huge windfall for private label maker
Cramer said the recall of products like Children's Tylenol, Mortin, Zyrtec and Benadryl may hardly move the needle at the huge J&J behemoth, but for Perrigo, which weighs in at just $2 billion in annual sales, the loss of their only real competitor translates into big bucks.
Cramer said of the 10 analysts covering Perrigo, only four have a buy rating on the stock, with only one having commented on the huge opportunity for the company to take, and keep, market share. He said the upside is huge for Perrigo, especially with shares down 11% from their highs.
Better still, Cramer said that 50% of people who try cheaper, generic versions of drugs often stick with them, which translates into long-term benefits for the company as well. Even in times of recession, he said, people still need medicines for their kids.
In the "Executive Decision" segment, Cramer sat down with Tom Ward, president and CEO of
, a speculative oil and gas stock that's down 27% since Cramer last recommended the stock on March 19.
Ward described SandRidge as a balanced company, focusing on both oil and natural gas. He said the company's disciplined approach allows it to grow either business as market forces dictate. Thanks to the company's recent acquisition, Ward said that SandRidge will derive 70% of its revenue from oil.
Turning to the company's financials, Ward said that SandRidge is in great shape, with a strong credit facility and no debt due until 2014. Regarding the company's seemingly disappointing quarterly results, Ward said that analysts should not have been surprised that the company backed off on its drilling, as was announced last year. He said that with oil and gas prices falling, SandRidge opt'd to spend less on capital expenditures.
In closing, Ward said that he's very bullish on both the prospects for natural gas and for SandRidge. Cramer said that he remains a believer in the company, and while he liked it at $7 a share, he likes it a whole lot more at $5 a share.
In the Lightning Round, Cramer was bullish on
World Wrestling Entertainment
Cramer was bearish on
-- Written by Scott Rutt in Washington D.C.
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At the time of publication, Cramer had no positions in stocks mentioned.
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