Cramer's 'Mad Money' Recap: March 12

This article was originally published March 12.

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


"I want you to stay the course. This rally is real," Jim Cramer told the viewers of his "Mad Money" TV show Thursday.

He said this time there's real news behind the market's upward momentum, adding "we're not done yet."

Cramer's said all along that he'd turn positive on stocks only when he saw real signs of improvement. He said ever since Lehman Brothers was put down like a dog, every day seemed to be worse than the one before, until this week.

"This week's been different," said Cramer, who noted seven positive reasons for the rally.

First, the retail sales numbers was better than expected as reflected in the results from Wal-Mart ( WMT) and at casual dining establishments like Brinker ( EAT) and Darden ( DRI). He said the consumer has risen from the dead.

Second, Bank Of America ( BAC) announced that it's profitable. He said banks are making money and are under less scrutiny from the Fed.

Third, General Electric ( GE), which he also owns for his Action Alerts PLUS portfolio, received its long awaited ratings downgrade and the stock rallied. He said this shows that all of the bad news is already baked into the stocks.

Fourth, takeovers are back. Just look at the pharmaceutical sector which is in shotgun wedding mode, he said.

Fifth, there are upside surprises in the tech sector such as in companies like Taiwan Semiconductor ( TSM).

The sixth positive is the rise in mortgage applications. As rates continue to fall, the housing bottom inches closer, said Cramer.

And finally, General Motors ( GM) announced it doesn't need the last $2 billion from the government. It may not be much, but it's something, Cramer said.

These are the seven substantive changes that occurred just this week, Cramer told viewers. And that's why he doesn't feel its over yet.

Sell Block

In this segment, Cramer asked whether Alcoa's ( AA) dividend is safe. The answer, he concluded, is a decided "no."

Cramer said he's still a fan of high-dividend paying stocks that also offer growth, but warned that not all dividends are created equal. In Alcoa's case, he said "this is exactly what a company looks like right before it cuts its dividend."

Alcoa is currently yielding over 11%, but Cramer said that number should come crashing down hard. The stock has suffered a 70% decline in value, and the company has more debt than it does cash on hand. In order to just sustain its current dividend, the company would need more than $545 million, and that is more than it will likely be able to earn.

Cramer said another stock to watch out for is BB&T ( BBT). BB&T borrowed over $3.1 billion in TARP money from the government, but stands alone as the only bank taking TARP money to not cut its dividend.

Outrage of the Day

Cramer sounded off at the regulators who let Bernie Madoff and countless others operate for years without noticing any fraud. He again said that Wall Street needs to be regulated at least as much as gambling is in Las Vegas.

Cramer said Wall Street doesn't need more regulatory agencies, it needs more smart, knowledgeable regulators who can keep up with a complex and evolving world. Cramer said today's crooks can run circles around those who just check off boxes on a list. Today's regulators, he said, need to understand the business and be able to think things through.

Mad Mail

Cramer told a viewer that ConocoPhillips ( COP) has a great yield and great management and he'd still be a buyer.

Am I Diversified?

Cramer spoke with callers to see if their portfolios have what it takes. The first caller's portfolio included Caterpillar ( CAT), Union Pacific ( UNP), DelMonte Foods ( DLM), Coca-Cola ( KO) and U.S. Steel ( X).

Cramer said he considers Coca-Cola a food company, like DelMonte, and recommended selling DelMonte for a healthcare company.

The second caller's top holdings included Unilever ( UN), Edison ( EIX), Cisco ( CSCO), Bristol-Myers Squibb ( BMY) and Wells Fargo ( WFC).

Cramer called this portfolio "stellar."

The third caller had Agnico-Eagle Mines ( AEM), Quanta Services ( PWR), Pepsi ( PEP), Disney ( DIS) and Wal-Mart ( WMT) as their top five stocks.

Cramer said that this caller knew her diversification.

Lightning Round

In the Lightning Round, Cramer was bullish on Agnico-Eagle Mines ( AEM), Eldorado Gold ( EGO), Terra Nitrogen ( TNH), Taiwan Semiconductor ( TSM)and Hewlett-Packard ( HPQ).

Cramer was bearish on Yamana Gold ( AUY), AeroVironment ( AVAV), United States Steel ( X), Mosaic ( MOS)and NetScout Systems ( NTCT).

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

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 long Wells Fargo, Unilever, Quanta Services, Pepsi, Wal-Mart, General Electric.

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

Industrials in Value Territory: Cramer's 'Mad Money' Recap (Thursday 6/21/18)

Industrials in Value Territory: Cramer's 'Mad Money' Recap (Thursday 6/21/18)

Kraft Heinz, VF Corp, Cimarex Energy: 'Mad Money' Lightning Round

Kraft Heinz, VF Corp, Cimarex Energy: 'Mad Money' Lightning Round

Jim Cramer: Williams Sonoma Is a Digitized Play

Jim Cramer: Williams Sonoma Is a Digitized Play

Video: Jim Cramer on Netflix, Disney, Intel, Micron and Goldman Sachs

Video: Jim Cramer on Netflix, Disney, Intel, Micron and Goldman Sachs

Jim Cramer Weighs In on Intel CEO Resignation

Jim Cramer Weighs In on Intel CEO Resignation