Click here for an archive of Jim Cramer's Mad Money recaps.


Jim Cramer bid a farewell to financial stock bear raids when he told viewers of his "Mad Money" TV show Tuesday that the Treasury Department's new protection plan finally puts an end to this devastating, but legal, practice.

Cramer said the market was able to hold onto most of its gains on Monday because the possibility of another Great Depression was taken off the table.

He said that the government's plan to take taxpayer money and invest it directly in banks has finally broken the cycle that has plagued the sector, panicked investors and brought many of the industry's finest companies to their knees.

Cramer described the process in which short-sellers and hedge funds targeted banks and destroyed them. By using unregulated credit default swaps, short-sellers were able to create unsubstantiated fear in a stock.

Once the fear took hold, the short-sellers would exacerbate the situation using naked shorts and puts to lower the stock price even further at very little cost to them. With stocks under heavy pressure, rating agencies were forced to lower ratings, causing media speculation and eventually banking customer panic.

Cramer said the Securities and Exchange Commission's prior moves to ban short-selling on financials didn't go far enough to prevent the credit default swaps from being used to spread fear.

However, that has changed with the government's new rescue plan for financial companies and its huge influx of capital. Cramer said short-sellers now have to once and for all cover their positions and leave the financials.

"The financial stocks no longer have a bulls-eye on the them," he said. "SEC-endorsed bear raids are a thing of the past."

Cramer: Breaking Capital Destruction

Natural Gas Bargain

Cramer spoke with Ultra Petroleum ( UPL) president and CEO Mike Watford to find out how his company is holding up after its stock declined from $102 a share to $46 a share from a wave of short-selling.

Stockpickr

Watford said even at $6 natural gas, Ultra Petroleum makes a tremendous amount of money for its shareholders. He noted the company's net asset value is $10 billion, substantially higher than its current market capitalization.

When asked about Ultra's Pinedale field in Wyoming, Watford noted that the region is still the country's third or forth largest natural gas reserve, yet spans just 60,000 acres, making it incredibly dense and easy to drill. He said Ultra has yet to set up production on 92% of the region, which has an estimated 14 trillion cubic feet of natural gas.

Cramer called Ultra a buy, noting that the wildcat driller is one of the lowest cost producers of natural gas, well below the industry average. While growing reserves at 29% a year and delivering 43% annual production growth, he said the company is a solid play that doesn't require the credit markets for some years to come.

A Recession Fixture

Pawnbrokers have been a fixture in hard times, and they figure to play a big role in this coming recession.

Cramer said pawnbroker Cash America ( CSH) is one stock that will prosper as Americans get poorer in the tough times ahead.

BankingMyWay

Cash America derives 60% of its revenues from pawnshop operations, with another 38% from payday loans and 2% from check cashing fees.

While its payday revenues are now threatened by increased state regulation, Cramer said the company has already begun lowering or removing entirely revenues from payday loans in Ohio from its forecasts in anticipation of increased regulation in that state. He expect the company to take similar action for other states.

Still, Cramer said Cash American is a desirable stock because the barriers to enter the pawn shop market are high.

Cramer's thesis lies in the fact that 71% of Cash America's inventory is jewelry, specifically gold jewelry. With gold prices still up 24.8% since last year, the price the company can sell unclaimed items for should rise substantially over time.

Furthermore, Cramer said Cash America's recent acquisition of a Mexican-based pawnshop company will be immediately accretive to earnings, further bolstering the company's bottom line.

He said he expects the company to beat the earnings expectations in the upcoming quarter.

Cramer called Cash America one stock that works well during times economic misery, and he'd be a buyer, especially now with its stock price tumbling.

Mad Mail

In this segment, Cramer told a viewer that John Deere ( DE) should be bought now that the credit crisis is coming to a resolution.

Cramer told another viewer that he's not a fan of HEICO ( HEI) amidst a strike at Boeing ( BA) and a possible Obama administration.

Lightning Round

Round, Cramer was bullish on Philip Morris International ( PM), International Business Machines ( IBM), Toll Brothers ( TOL), Consolidated Edison ( ED)and Duke Energy ( DUK).

He was bearish on Ford Motor ( F), MetLife ( MET), Ezcorp ( EZPW), NVR Inc ( NVR) and FirstEnergy ( FE).

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

Read more of Cramer's Mad Money Lightning Round insights.

For "Mad Money" performance statistics and other links, check out Mad Money stats

At the time of publication, Cramer was not long on any stock.

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."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

More from Jim Cramer

Jim Cramer's Investing Rule #2: It's OK to Pay Taxes

Jim Cramer's Investing Rule #2: It's OK to Pay Taxes

Snap, Gilead Sciences, Cronos Group: 'Mad Money' Lightning Round

Snap, Gilead Sciences, Cronos Group: 'Mad Money' Lightning Round

The Trouble With Trump's Tariffs: Cramer's 'Mad Money' Recap (Friday 6/22/18)

The Trouble With Trump's Tariffs: Cramer's 'Mad Money' Recap (Friday 6/22/18)

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Jim Cramer: Some Industrials Stocks Are Becoming Great Values

Jim Cramer: Some Industrials Stocks Are Becoming Great Values