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NEW YORK (
) -- When Washington is away, the bulls do indeed play, Jim Cramer said on
Tuesday after another up day on Wall Street.
Cramer said with interest rates once again determining stock prices -- this time for the better -- there are a whole host of stocks moving to the upside.
Many consumer staple stocks received downgrades in recent days, but Cramer said he's still a fan of high-yielding dividend names including
. He also noted that
Johnson & Johnson
, a stock he owns for his charitable trust,
Action Alerts PLUS is also doing a fabulous job.
Meanwhile, many shorts took down housing-related stocks after
Stanley Black & Decker's
miserable results. However, Cramer noted stocks including
, up 11.6% today, and
Fortune Brands Home & Security
Lower interest rates and lower gas prices are also a win for travel and leisure stocks including
as well as restaurants such as
and retailers including
and Action Alerts PLUS name
, Cramer added.
Other notable wins from today included
, with a 10% dividend boost, along with
. Cramer also said that
, up 8.8% today, is a buy, buy, buy.
Among the few losers for the day were momentum names
Pioneer Natural Resources
, all stocks that are taking a well-deserved breather.
Off the Charts
In the "Off The Charts" segment, Cramer went head to head with colleague Mark Sebastian over the overall direction of the markets and what, if anything, can be gleaned from watching the
CBOE Volatility Index
, commonly known by its symbol, the VIX.
Looking at a daily chart of the
as compared to the VIX, Sebastian's analysis noted the normal pattern, where the S&P rises and the VIX falls, and the reverse where the index falls and the VIX rises. Times when both rose in tandem, such as May into June and again in August, were a precursor to a sharp move to the downside.
That's why Sebastian was cautious about the market's recent action, with the VIX rallying alongside the S&P on Oct. 18, which is especially rare going into a weekend. Since then, both the S&P and the VIX have been soaring, causing Sebastian to predict a short-term top in the markets.
Cramer said he's not as pessimistic as Sebastian but he still advises taking some profits and using a little caution after the market's big run.
From Worst to First
When a industry-leading company stumbles, don't be so quick to abandon ship, Cramer cautioned viewers. As some investors learned the hard way, it's possible to transform from a despised loser to a beloved winner in as little as a year.
That was certainly the case with
, whose shares jumped 13.8% in a single day, topping $1,000 a share. But few remember that just a year ago many analysts downgraded Google after a disappointing third quarter citing falling desktop ad revenue that would never be replaced in time by rising revenue from mobile advertising.
Fortunately, Google's management was smart enough to also realize that it needed to pivot quickly from desktop to mobile; over the past 12 months it was able to do just that. Google answered all of the analysts' worries as it is selling more ads than ever across multiple screens, noted Cramer.
Yet, even with the recent surge in its shares, Cramer said Google trades at just a scant 19 times earnings, equivalent to cereal-makers
and Kellogg. Backing out Google's current cash hoard and that multiple drops even further to just 16.4 times earnings -- and that's assuming earnings don't increase from current levels.
That's why Cramer told viewers they shouldn't be so quick to abandon industry leaders like Google, or
, an Action Alerts PLUS holding. If the analysts see major problems with a company's business model, then there's a good chance the company does as well.
In the Lightning Round, Cramer was bullish on
Cramer was bearish on
Executive Decision: McAndrew Rudisill
In the "Executive Decision" segment, Cramer sat down with McAndrew Rudisill, president and CEO of
, a small, speculative oil and gas driller with 65,000 acres in the Williston Basin region of the Bakken shale. Emerald currently has just two rigs in operation but plans to double its production over the next year.
Rudisill said Emerald is having lots of luck drilling in the Williston Basin, which is why his company will be adding a third rig in April and a fourth before the end of 2014. He said new technology is allowing Emerald to increase the success of all of its wells.
When asked about transportation, Rudisill said that currently Emerald trucks its oil out of the region, but noted that a pipeline will be installed by the first quarter of 2014, allowing over $1 per barrel in savings to the company.
Turning to Emerald's finances, Rudisill noted the company now has $200 million in cash, with no debt thanks to a recent equity raise of $140 million. That's enough to more than fund Emerald's 2014 drilling plans, he said.
Finally, when asked how big the Williston Basin actually is, Rudisill said estimates continue to grow and currently sit at 11.2 billion barrels or more. Cramer said that while many drillers have seen their shares already soar, the smaller Emerald may be the next way to play the American energy revolution.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer said the only reason investors buy
is because they hope someone else will buy it even higher.
Cramer said even Netflix CEO Reed Hastings admitted his company's stock trades on "heart and culture" more than its fundamentals. For many investors, the decision to buy or sell Netflix is binary. If subscriber growth is up, they buy; if it's down, they sell.
By traditional metrics, Netflix remains wildly expensive. But looking at the size of the opportunity Netflix could have in a few years, it's easy to see why some many investors still like the stock, Cramer concluded.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC
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-- Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, HON, JNJ, LINE and TJX.
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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