Cramer's 'Mad Money' Recap: March 17

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While the markets may be giving investors a reason to celebrate as of late, Jim Cramer told the viewers of his "Mad Money" TV show Tuesday not to expect unending upside.

Cramer said it's safe to start breathing again, with the possibility of the Great Depression II now off the table, but cautioned that the market's continued rally does not mean we're ready to roll back to Dow 10,000. "Just because economic Armageddon is not upon us, it doesn't mean its clear sailing," he said.

Cramer acknowledged the many things going right in the markets, including the uptick in housing starts, strength in retail sales, unemployment not getting worse, commodity prices rising, and banks announcing that they are actually profitable.

With all of this positive news, he said, its no wonder the market is bouncing. He even said that the bounce could continue if Obama continues the pro-business rhetoric. But, he said, there is still a problem.

Cramer said the earnings estimates for most companies are still too high. And with that fact remaining, he said, there will continue to be earnings disappointments tempering the good news in other areas.

Cramer said for this reason alone, investors should not be celebrating for more than another 700 points on the Dow. "The floor may be in," he said, "but we won't see above Dow 8,000."

Off the Charts

In this segment, Cramer looked at the chart of oil service giant Smith International ( SII), to see if the charts, or the fundamentals, are telling the truth about the company's future prospects.


Cramer said a technical analysis by Dan Fitzpatrick at on the "on balance volume" of Smith International has been rising since December, signaling that the stock is ready to start a new uptrend.

Cramer said Fitzpatrick has it wrong, and while surging crude prices should be bullish for Smith, the company's poor balance sheet makes it the wrong way to play the move.

Cramer instead recommended Transocean ( RIG), a company facing the same trends as Smith, but in a totally different way.

Cramer said the balance sheet at Smith is just awful, with the company needing an additional $365 million for June of this year. Transocean, on the other hand, doesn't need additional cash, and sees demand for its rigs still outstripping supply.

Cramer said Transocean is also trading at a deep discount, just 4 times earnings, compared to Smith's 10.8 times multiple.

A Chip Rally

Cramer said there's a rally coming in the semiconductor stocks, and the way to play it is not with the big stocks everyone runs to, but rather with the little guys.

He previously recommended Taiwan Semiconductor ( TSM) as one intriguing name and tonight added Xilinx ( XLNX), a company he's not recommended in over 10 years, to his buy list.

Cramer said Xilinx is poised for a big comeback, now that its guidance is topping Wall Street expectations. The company recently reported the positive guidance news, saying it sees strength in orders from wireless companies.

Cramer said Xilinx should be the clear winner in the coming Chinese telecom stimulus package, which greatly expands wireless coverage in that country.

Cramer also explained Xilinx is a leader in the manufacturing of programmable chips, which can be programmed for use in a variety of industries and applications. He noted that as the market shifts away from application specific chips in favor of more versatile programmable varieties, Xilinx should only continue to prosper.

Trading at just 15 times its earnings, Cramer said Xilinx is cheap, especially given the company's lean inventories, which will allow it to raise prices. "I think Xilinx is going higher," he concluded.

Mad Mail

Cramer told a viewer that Nucor ( NUE) CEO Dan DiMicco did not hint about the possibility of a loss the last time he appeared on the show, but noted that sometimes even CEOs cannot foresee everything and get it wrong.

Cramer told a second viewer that he did cut back his position in Altria ( MO), a stock which he owns for his charitable trust, Action Alerts PLUS , due to the possibility of new cigarette taxes hurting sales.

Lightning Round

In the Lightning Round, Cramer was bullish on Dominion Resources ( D), Research In Motion ( RIMM), Apple ( AAPL), AFLAC ( AFL), MetLife ( MET), Nordic American Tanker ( NAT), NYSE Group ( NYX), HSBC Holdings ( HBC), AT&T ( T) and Verizon ( VZ).

He was bearish on Entergy Corp ( ETR), Manulife Financial ( MFC), Molson Coors ( TAP), General Maritime ( GMR), Intercontinental Exchange ( ICE), Microsoft ( MSFT), Clearwire ( CLWR), Alcoa ( AA) and Energy Conversion Devices ( ENER).

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At the time of publication, Cramer was long Altria.

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."

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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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