Cramer's 'Mad Money' Recap: April 22

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The Dow Jones Industrial Average and the S&P 500 are not the only indicators that matter, Jim Cramer told students in a special live "Mad Money" show on Wednesday from Ohio State University.

Cramer told students at the Fisher College of Business that market breadth is one of the most important indicators of the market's overall health, and that when there are more stocks going higher than stocks going lower, the market's in really good shape.

Cramer said that while today's late day sell-off may seem like a bad thing, the market's breadth tells a different story. In fact, he said, there were more stocks in the S&P 500 that were higher today, while there were twice as many stocks higher than there were lower on the Nasdaq.

He said it's a bullish sign to see strength in so many sectors. He said there was strength in telcos, with AT&T ( T) and Verizon ( VZ) both trending higher.

There was also strength in the industrials as evidenced by General Electric ( GE). Even the banks were doing well, with Wells Fargo ( WFC), leading the charge.

"This is what good breadth looks like," said Cramer.

Dispelling Myths

On Wall Street, fairy tales don't come true. So in honor of Earth Day, Cramer dispelled the myth that investing in "green" stocks will benefit the environment and your wallet.

To illustrate his point, Cramer examined two local green companies, Owens Corning ( OC), which makes insulation and materials for windmill blades, and Owens-Illinois ( OI), a large glass recycler.

He said that while the students of Ohio State might be tempted to own this environmentally friendly duo, hopes of profiting from them are simply a dream.

Cramer noted that neither of these companies has the two things Wall Street needs to send their stocks higher: growth or a dividend. Both companies are doing poorly, and won't be able to show any growth for the foreseeable future, said Cramer.

He said simply that green isn't going to work without government subsidies unless oil returns to $100 a barrel.

A better strategy, said Cramer, is to make as much money as you possibly can in the markets, then donate your profits to worthy causes.

Investors looking for another local company that fits the bill should consider FirstMerit ( FMER), a bank Cramer's highlighted before and perhaps one of the only banks poised to profit from the failure of others.

FirstMerit, said Cramer, could become the largest bank in Ohio. The company is paying back its TARP money, had its debt upgraded recently, and still sports a hefty 6.1% dividend yield.

Hopeful Housing Signs

Cramer welcomed Bob Toll, chairman and CEO of Toll Brothers ( TOL), the country's largest home builder, to the show to see if Cramer's prediction of a housing bottom on June 30 could actually become a reality.

Toll said he's starting to see the market differently than he did previously. He said that in the last five weeks, interest deposits on new Toll Brother homes has been increased, the first time in many months that the trend has been higher.

Toll also is seeing some signs of recovery nationwide, with only the hardest hit areas of the country not showing any signs of improvement. He said that many recent negative reports in the media might not be up to date with reality.

Toll stopped short of giving an "all clear" or predicting a bottom in the housing market, but said it's at least nice to see that things aren't as bad as they once were.

Q&A

While fielding questions from the students of Ohio State, Cramer said that he's a huge fan of Hewlett-Packard ( HPQ), a stock which he owns for his charitable trust, Action Alerts PLUS, and he can't believe the stock has gotten this low.

When asked about retailer Aeropostale ( ARO), Cramer said he was wrong to lump this company with the likes of American Eagle Outfitters ( AEO) and Abercrombie & Fitch ( ANF) in a recent sell recommendation. He said that Aeropostale is a much better company and is worthy of owning.

Lightning Round

Cramer was bullish on McDonald's ( MCD), Hershey Foods ( HSY)and International Business Machines ( IBM).

He was bearish on Accenture ( ACN), Las Vegas Sands ( LVS)and McDermott International ( MDR).

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

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