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Ignore the negativity in the markets and use the opportunity to take advantage of some investment opportunities, Jim Cramer told viewers of his "Mad Money" TV show Thursday.

Cramer said the negativity is a reflection of the "stupidity" of nervous traders who sold off shares after the Federal Reserve's recent rate cut because they didn't understand just how significant it was.

Cramer said they didn't realize the rate cut represents an important turn for the economy, offering an opportunity for investors to get back into the markets.

Cramer reiterated his "love affair" with retail, financial and homebuilder stocks. In this show, however, he turned his attention to two retailers: J.C. Penney ( JCP) and Ralph Lauren ( RL).

Both companies are partners in a new venture called "American Living" that is set to open on Feb. 19. Despite the promise of this new brand, J.C. Penney, Cramer notes, is down 41% year over year. Additionally, Ralph Lauren was just downgraded by two separate firms.

This is where the market is wrong, Cramer says. J.C. Penney, he says, caters to the lower-end consumer and should perform well in a slowing economy. Ralph Lauren, he notes, is an "aspirational" brand that keeps people coming back to their stores.

The combination of these two excellent management teams almost ensures success for both companies success.

Disney's Upside

"On Tuesday, we saw a great miscarriage of justice," Cramer told viewers, referring to Citigroup's recent downgrade of Walt Disney ( DIS). Everything about this downgrade is dead wrong, he said.

Cramer said Citigroup's report only addresses the Disney theme parks, and not the company's cable, broadcast, DVD or film ventures.

Only 22% of Disney's net income last year came from its parks, Cramer noted, while 45% of its income came from its cable properties.

The report also cites the rising cost of energy, a weak housing market and slowing consumer spending as warning signs. But Cramer says all of these points are old news that's been factored into the stock.

In addition, he said Disney's management took the unusual step of publicly refuting many of the arguments in Citigroup's report.

At just $30 a share, Disney trades at just 15 times this year's earnings but maintains a 13% long-term growth rate. "This makes Disney historically cheap," Cramer said. He called Disney "a great long-term buy."

The Fight Against Breast Cancer

Cramer says there's an epidemic of breast cancer in this country, and he believes Hologic ( HOLX), a company he owns for his charitable trust Action Alerts PLUS , could be our best defense.

He welcomed Jack Cumming, CEO of Hologic to the show for an update on the company's business.

Cumming said Hologic has 60% market share in the digital mammography market and the company is two years ahead of its closest competitor.

Contrary to recent reports, Cummings said he sees lots of room for growth in the U.S. market, where digital mammography has 30% market penetration compared to 70% for traditional mammography.

Cummings sees opportunity for strong overseas growth in the coming years. Cummings also said the company's made exceptional strides in integrating its recent acquisition of Cytek.

In response, Cramer said Hologic "is money" and he continues to be a buyer.

Am I Diversified?

Viewers called Cramer to find out if their portfolios were up to par for the new bull market. The first caller had Altria ( MO), Pfizer ( PFE), Apache ( APA), Citigroup ( C) and Mosaic ( MOS) as his top holdings. Cramer applauded the portfolio.

The second caller had Sirius Satellite ( SIRI), Caterpillar ( CAT), Mercadolibre ( MELI), Lowe's ( LOW) and Sears Holdings ( SHLD) as her top holdings.

Cramer didn't like this portfolio. He said Sears and Lowes are competing companies, and he would dump Lowe's in favor of a medical company like Hologic ( HOLX).

The third caller's portfolio included BioMarin ( BMRN), Yamana Gold ( AUY), Petrobras ( PBR), St. Joe ( JOE) and Schering-Plough ( SGP).

Cramer noted that there are two drug companies in the portofolio, and that he doesn't like drug and biotech companies in the same portfolio. He recommended making changes to get this portfolio more diversified.

In response, Cramer said Hologic "is money" and he continues to be a buyer.

Lightning Round

Cramer was bullish on Goodrich ( GR), Corning ( GLW), Caterpillar ( CAT), ING Group ( ING) and Mosaic ( MOS).

Cramer was bearish on Excel Maritime ( EXM), Rubicon Technology ( RBCN), Martha Stewart Living ( MSO), Tootsie Roll ( TR), Silicon Laboratories ( SLAB), Danaher ( DHR) and China Mobile ( CHL).

Want more Cramer? Check out Jim's rules and commandments for investing by clicking here.

For more of Cramer's insights during the Lightning Round, click here .
At the time of publication, Cramer was long Corning, Hologic, Caterpillar, Altria, Citigroup, Sears Holdings and Schering-Plough.

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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