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NEW YORK (TheStreet) -- There are still values out there, Jim Cramer told his "Mad Money" TV show viewers Monday after a long, Olympics-sized break. But as the markets head higher there will be fewer and fewer values to be found.
Cramer reminded viewers that the time to champion the markets is not after a huge run, but after a huge decline. Big rallies, he said, are times when investors should be poking holes in the bull case and using increasing levels of caution.
So what keeps Cramer up at night? The bears argue that valuations are stretched, but Cramer argues that at 17 times earnings the markets are still a bargain as profits are robust enough to send earnings estimates higher.
The bears also argue the markets are levitating without any facts. But Cramer noted the big uptick in mergers and activist investors would say otherwise. Companies like Comcast(CMCSA) - Get Report, Triquint Semiconductor (TQNT) and Men's Warehouse (MW) would all agree that there are still great values to be had.
Yes, there are trouble spots in the market, Cramer admitted, such as the collapse of the retail sector and the continued skepticism surrounding the banks. Autos are also heading south, as is anything that touches China, including mining and minerals.
The only thing that really worries Cramer, however, is momentum stocks -- names like Facebook(FB) - Get Report, a stock which Cramer owns for his charitable trust, Action Alerts PLUS, along with Tesla Motors(TSLA) - Get Report and Netflix(NFLX) - Get Report. These stocks continue to roar higher, he said, but big investors just can't afford to not own them.
That's why Cramer said he remains bullish on stocks. They're still the best game in town. But he's decidedly less optimistic than he was just a few weeks ago.
With the markets once again in bull market mode, it's time to look for momentum, Cramer told viewers as he introduced his "Mad Money Momentum Monsters" list of 15 stocks that fund managers continue paying up big to own.
Next up is Chipotle Mexican Grill(CMG) - Get Report, the healthy restaurant chain growing same-store sales by 9%. Trading at just 43 times earnings, Chipotle is one of the cheaper momentum names on Cramer's list.
Then there's Facebook, the company that's growing profits while monopolizing mobile advertising. Cramer said Google(GOOG) - Get Report, another Action Alerts PLUS holding, also makes the list because this company trades at just 23 times earnings and has its fingers in many pies.
Rounding out the first six stocks in the "Momentum Monsters" list are accessory maker Michael Kors (KORS) , which is growing same-store sales in the high double-digits, and Netflix, the only company that can pay more to deliver its products to customers and still see its stock up $15 a share on the news.
Continuing with his "Mad Money Momentum Monsters" list, Cramer added the stocks of Priceline.com (PCLN) , a company that has become the de facto way to travel; Regeneron(REGN) - Get Report, with its blockbuster drug, Eylea; and SolarCity (SCTY) , the new one-stop shop for all things solar.
Also making the "Monster" list are Stratasys(SSYS) - Get Report, the much-hyped 3-D printing company, and Tesla Motors(TSLA) - Get Report, a company that has mastered the art of setting reasonable expectations then crushing them.
Cramer also gave the nod to Twitter(TWTR) - Get Report, a stock on the mend after getting crushed last quarter, and Under Armour(UA) - Get Report, the stealth technology company that trades at a lofty 62 times earnings.
Finally, there is cloud computing newcomer Workday(WDAY) - Get Report and online review giant Yelp(YELP) - Get Report. Cramer said the markets will keep clamoring for all these stocks as long as the bull remains in charge.
Executive Decision: Daniel Rice
For his "Executive Decision" segment, Cramer sat down with Daniel Rice, CEO of Rice Energy (RICE) , the natural gas producer in the Marcellus shale region of Pennsylvania that came public recently just as natural gas prices were spiking on heels of a harsh winter throughout most of the country.
Rice explained that drilling in shale is a fairly new industry, which is why his company is built exclusively as a shale company -- one that is focused exclusively on maximizing returns on shale wells. Rice Energy's breakeven point for natural gas is between $2.00 and $2.50 per MCF, making the company among the most efficient producers around, he explained.
Rice continued that the company deploys a unique approach to its wells including proprietary technology that lets it optimize rates of return such that all Rice wells pay for themselves within the first 12 months.
When asked about the company's leveraged balance sheet, Rice said he doesn't see the need to raise more capital at the moment because the company has high-quality assets, and its long-term investments in land and midstream facilities will be a one-time charge.
Cramer said this newcomer to the shale game is one to watch as natural gas prices finally begin to climb from their record lows.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer gave a tip of the hat to Facebook and Tesla Motors, two companies with young CEOs that see a future that others may not.
Cramer said that when it comes to technology, kids know a lot more than you or I do, which is why the company's acquisition of WhatsApp, with its 453 million users, was actually cheap at $19 billion. Given the market's valuation of Twitter, Cramer said WhatsApp would've been valued north of $30 billion.
Then there's Tesla, where CEO Elon Musk not only knows how to make the best cars, he's also built the best company and the best stock -- one that's building its own batteries and sending its share price to the moon.
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-- Written by Scott Rutt in Washington, D.C.
To email Scott about this article, click here: Scott Rutt
At the time of publication, Cramer's Action Alerts PLUS had a position in FB and GOOG.