This article was originally published Feb. 4

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"In this hard market, only the strong will survive," Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

He rolled up his sleeves to point out example after example of companies getting it right, and companies getting it wrong.

Cramer said when times get tough, strong companies get stronger and take market share from their weaker rivals. He said companies like Clorox ( CLX) and Colgate ( CL) are getting it right, by capitalizing on the strength of their brands.

He said that contrasts with the earnings results of Kraft ( KFT), Sara Lee ( SLE) and Procter & Gamble ( PG), which left little to be desired.

In the banking sector, Cramer said companies like Goldman Sachs ( GS), a stock which he owns for his charitable trust, Action Alerts PLUS, are talking about repaying the TARP money they borrowed, while others like Bank of America ( BAC) and Citigroup ( C) talk about needing more TARP money. "These differences are meaningful," said Cramer.

In manufacturing, Cramer said Emerson ( EMR) and Honeywell ( HON) reported fabulous quarters.

On the flip side, United Technologies ( UTX) and Ingersoll-Rand ( IR) did not.

Cramer said these differences show up in every sector, including technology, cell phones, healthcare and even the oil stocks. He said it's never been more clear that playing entire sectors is not the way to invest. He said to "stick with winners who know how to execute," and "leave the rest to everyone else."

Cramer: Don't Believe the China Doomsday Talk

Outrage of the Day

Cramer pleaded to SEC Chairwoman Mary Schapiro to ban UltraShort Financial ProShares (SKF), which he calls a sham of an ETF, saying it doesn't work and is hazardous to its users and the market as a whole.


Cramer said the SEC needs to act like the FDA, which has the power to pull any food or drug that it finds to be hazardous to its patients. He said the SEC also has the power and should exercise it to save the market from SKF.

SKF, said Cramer, is designed to be a hedge against the bank stocks. As banks decline, the fund should skyrocket, with every $1 invested in the fund yielding $2 of shorting power. Today SDK, which once traded at $262 a share in December, trades just $128 a share during what should be the best time imaginable for the fund.

Cramer questioned the purpose of the fund, if it loses half of its value at a time when its supposed to capitalize the most. He called the product simply irresponsible and said it only makes the health of the financials worse in the process. He urged the SEC to just ban it.

A Question of Coupons

Cramer talked with Botox-maker Allergan's ( AGN) Chairman and CEO David Pyott to find out if that company is among the strong or weak in its sector. The company recently reported ts earnings, beating Wall Street estimates by 3 cents a share on declining revenue.


Pyott said Allergan's strength comes from the diversity of its products and the strength of its R&D pipeline. He said all of the company's businesses remain strong, with six new products under review with the FDA.

Pyott called many of the new products great traffic builders in a difficult economy. He noted the company has turned to coupons and other pricing discounts to help keep that traffic strong.

Cramer said he wasn't sure about Allergan, despite the company's long history of delivering and his trust in Pyott as CEO. He said the difficult economy and the coupons are making him nervous. He said "don't buy" on Allergan for now.

Am I Diversified?

Cramer spoke with callers and reviewed their portfolios to see they have what it takes. The first caller's portfolio included US Steel ( X), Research In Motion ( RIMM), Bank of America ( BAC), Wyeth ( WYE) and Verizon ( VZ).

Cramer said all of these names were good, except Wyeth, which he said to take profits and get out.

The second caller's top holdings included Aqua America ( WTR), General Electric ( GE), Johnson & Johnson ( JNJ), Pepsi ( PEP) and General Dynamics ( GD).

Cramer blessed this portfolio as "absolutely what we're looking for."

Lightning Round

Cramer was bullish on Agnico-Eagle Mines ( AEM), Athenahealth ( ATHN), Wal-Mart ( WMT)and Visa ( V).

He was bearish on Kinross Gold ( KGC), Banco Bilbao Vizcaya Argentaria ( BBV)and Green Mountain Coffee Roasters ( GMCR).

Check out the latest edition of "Cramer's Take onTop-Searched Stocks" on Stockpickr.

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

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At the time of publication, Cramer was long Johnson & Johnson, Goldman Sachs.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 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, 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, 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 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, 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.

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