Cramer's 'Mad Money': A Genuine Rally

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

"Nobody believes in this rally but I don't believe it's over," Jim Cramer told the viewers of his "Mad Money" TV show Friday.

Cramer said everyone still wants to hide in gold after today's miserable jobless number, especially after the market's huge 24% rally. But that's a mistake, Cramer, because money is pouring into the market, he said. "Every move higher is not false."

Cramer said its never easy to pick a bottom, and there will always be naysayers. But he said the market's current move is not just short covering because there simply aren't that many shorts out there. What's really driving the markets is the bottom in housing, which is happening, and the Federal Reserve pulling out all the stops to save the economy.

Cramer made is clear that he's not a buyer of stocks at current levels. He told viewers that if they have 40% to 50% gains in their stocks, they need to take profits and not be pigs. However on any weakness, Cramer said he is a buyer, especially names like Celgene ( CELG), a stock which he owns for his charitable trust, Action Alerts PLUS , and one that was featured yesterday, which hasn't participated in the rally thus far.

"The easy money's already been made," said Cramer, "but that doesn't mean we're not still going higher."

Labor's Missile

For "Speculation Friday," Cramer said the Employee Free Choice Act that is now before Congress will have a major impact on America's largest retailer, Wal-Mart ( WMT), a stock which he owns for his charitable trust, Action Alerts PLUS .


The Employee Free Choice Act, or Card-Check as its known on Capitol Hill, makes it easier for employees to form unions, and harder for companies to stop them. Cramer said this bill is a missile aimed squarely at Wal-Mart, which has repeatedly come under fire for its labor practices.

According to Cramer, it's the threat of Card-Check passing that's keeping the big money out of Wal-Mart shares. If passed, Card-Check could have a major impact on the retailer, as unionized labor typically earns 30% more than non-unionized labor.

Cramer said he believes that Card-Check is the wrong move in a weakened economy. He said this is part of Obama's agenda that he feels is moving too far, too fast. But he said the initiative is likely to fail, and that's why he's willing to speculate on Wal-Mart shares.

The Winner

"At long last, the cola wars are over," proclaimed Cramer. And he said the stock to own is Pepsi ( PEP), another Action Alerts PLUS name.

Cramer said for years Pepsi, along with rival Coca-Cola ( KO), have been duking it out over marketshare. But over the past two years, with skyrocketing commodity costs, it became all-out warfare. However, now that commodity costs have returned to normal levels, the war is over, and the company with the most to gain, is Pepsi.

Pepsi is doing well, primarily on the strength of its Frito-Lay snack brands. With gas prices also returning to more normal levels, sales at convenience stores, a primary outlet for snacks, is again trending higher. Cramer expects Pepsi to fully capitalize on this trend, along with lower commodity costs, in the second half of 2009.

Pepsi currently trades at just 14 times earnings, a 27% discount to historical levels. According to Cramer, Pepsi should be trading at a premium given its investments into new products and brands. At just seven points off its low, Cramer said Pepsi is poised for a multiple expansion, and he's ready to ride shares higher.

Mad Mail

Cramer told a viewer that he's still a fan of Sears Holdings ( SHLD) CEO Eddie Lampert, and thinks the stock is cheap at just a $6 billion marketcap.

Crmer told a second viewer that he's not a fan of heavy equipment maker Terex ( TEX) and thinks the stock can go still lower. He said he would consider Caterpillar ( CAT), a stock which he owns for his charitable trust, Action Alerts PLUS , as an alternative.

Lightning Round

In the Lightning Round, Cramer was bullish on Peabody Energy ( BTU), Netflix ( NFLX), Eldorado Gold ( EGO), Agnico-Eagle Mines ( AEM) and Visa ( V).

Cramer was bearish on Yamana Gold ( AUY), CBS Corp ( CBS), Harley Davidson ( HOG) and Heartland Payment Systems ( HPY).

Check out the latest edition of "Cramer's Take on Top-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 Caterpillar, Wal-Mart, Pepsi, Celgene

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.

If you liked this article you might like

Companies That Could Use the Luck o' the Irish

Companies That Could Use the Luck o' the Irish

Dow Rises 115 Points; S&P 500 and Nasdaq Slump

Dow Rises 115 Points; S&P 500 and Nasdaq Slump

Sears Is Still Rotting

Sears Is Still Rotting

Toys 'R' Us Liquidation Reveals a Dangerous Trend Forming in U.S. Retailing

Toys 'R' Us Liquidation Reveals a Dangerous Trend Forming in U.S. Retailing

U.S. Stocks Edge Higher, Global Markets Hold Gains as Trade War Concerns Linger

U.S. Stocks Edge Higher, Global Markets Hold Gains as Trade War Concerns Linger