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NEW YORK (
) -- As the year draws to a close, there's only one thing on the minds of money managers, Jim Cramer told his
TV show viewers Tuesday, and that's beating the averages and their peers.
Cramer recalled that when he ran a hedge fund, if he was beating the averages at this point on the calendar, he'd simply declare victory and take a vacation so as not to screw anything up before Jan 1. If anything, his fund would become day traders, making a little here or there but not taking any major risks that could undo their gains for the year.
But if a fund is behind the averages, behind their peers, then there's only one thing that matters, Cramer said, and that's catching up by buying into what everyone else was buying into. In today's markets, that means stocks like
, he said, stocks with lots of momentum.
The value of such momentum names like
won't matter to these managers, said Cramer, as they will be solely focused on getting to their goals. Chasing performance is an all-to-common tactic at the close of the year, which is why Cramer said he'd be a buyer of all of these hot names going into December.
Off the Charts
In the "Off The Charts" segment, Cramer went head to head with colleague Bob Lang over the charts of
National Oilwell Varco
Cliffs Natural Resources
, three natural resource stocks that have been falling along with the price of oil.
Using a daily chart of National Oilwell Varco, Lang noted a change in momentum with this stock, as the MACD momentum indicator flashed a bullish crossover. He also noted a floor at $79 a share, giving the stock lots of upside. These buy signals were confirmed by the weekly chart, which also showed crossovers in both the MACD and the Williams oscillator, and Lang flagged the bullish cup-and-handle pattern, all leading to a $100 price target.
Lang was also bullish on Cliffs Natural, whose daily chart also displayed the cup-and-handle and weekly chart displayed an even more bullish inverse-head-and-shoulders pattern. Tesoro, he noted, was also building a base at current levels and is poised to launch to higher highs as it crossed its 200-day moving average while also showing a MACD crossover.
Cramer said he agreed with Lang's research, noting that his charitable trust,
Action Alerts PLUS, was getting worried about its position in National Oilwell Varco, but now may buy more.
Don't let the high-flying IPOs distract you from those that have flopped, Cramer told viewers, as the flops may actually be hidden gems in the rough. That's certainly the case with
, the in-flight WiFi provider that went public on June 20 at $17 a share only to fall 6% on the open.
Since the IPO, Cramer said, shares of Gogo are up 56% and the company's long-term outlook is terrific as the company enjoys a near monopoly on the services it offers. At its IPO, investors fretted about Gogo's need for additional capital, which has been addressed by an additional credit line. Investors also worried about Gogo losing customers, but in fact, it's expensive for airlines to re-outfit their fleets and Gogo remains best of breed with superior services.
That's why Gogo currently serves nine of the top 10 airlines in the U.S., along with scores of business aviation fleets. The company isn't standing still however and plans to roll out in-flight video and other services more broadly as well as continually adding more aircraft to its service.
With shares up 28% on its earnings yesterday, Cramer cautioned investors not to chase the stock higher. He said ideally, he'd wait for the company to do a secondary offering of shares, then buy in, but the stock needs at least a sizable pullback to be attractive again.
In the Lightning Round, Cramer was bullish on
Philip Morris International
Cramer was bearish on
Executive Decision: Mark Mednansky
In the "Executive Decision" segment, Cramer sat down with Mark Mednansky, CEO of
Del Frisco's Restaurant Group
, a stock that's up 44% since Cramer recommended it this time last year. Del Frisco's currently has 37 high-end restaurants across the country.
Mednansky said that Del Frisco's is all about having a good time, and the affluent are doing well right now and the upper-middle class are splurging and that's been a great combination for his company. He said there will always be room to indulge and customers love indulging with Del Frisco's
When asked about growth, Mednansky said that there are many locations where Del Frisco's doesn't yet have a presence and many others where they can easily put multiple locations. He said Del Frisco's could easily double in size next year if it wanted with just one of its brands, and his company has three.
One of those brands however, Sullivan's, has not been performing well, and Mednansky noted that they're keeping a close eye on the franchise and bringing it back to life, all while also not losing sight on their other brands, Del Frisco's Double Eagle Steak House and Del Frisco's Grille.
Cramer said that Del Frisco's remains a great growth story.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer opined on the instant negative reactions when
Whole Foods Market
cut its forecast last week. Even though everything remotely healthy or organic took a hit, as if the entire industry were doomed, Cramer said, that's just not the case.
Cramer said that Whole Foods will figure out its cannibalization issues, but the competition is here to stay, as everybody now realizes how important healthy and organic foods are to consumers. He said companies like
, with its Burt's Bees brand, are all big winners with this most recent weakness.
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 was long NOV.
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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