Cramer's 'Mad Money' Recap: April 27

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In the rush to judge President Obama's first 100 days in office, Jim Cramer told the viewers of his "Mad Money" TV show that there's only one way to really make the call, and that's to look at stocks.

He said that when you look at what's up and what's down, it's clear to see the economy is on the mend.

Cramer said the biggest gainers since Obama took office, the financials, tell the story, with stocks like JPMorgan Chase ( JPM) up 82%, Bank Of America ( BAC) up 75% and American Express ( AXP) up 55%.

In housing, stocks like DuPont ( DD), up 18% and Home Depot ( HD) show that the housing market is on track for a mid-summer recovery, said Cramer.

In the technology sector, stocks like IBM ( IBM) and Intel ( INTC) show that corporate America believes in the recovery and is not afraid to invest in new equipment, he said.

On the downside, the losers tell a similar story, with defensive drug stocks like Pfizer ( PFE) and Merck ( MRK) both down heartily as investor switch gears into growth stocks again.

"Stocks are the only real indicator of how Obama's doing," said Cramer, "and they say two thumbs up."

Results That Matter

"Never judge a stock based on what you read in the newspaper," Cramer told viewers. Newspapers are not written for investors and usually paint a misleading picture of companies, he said.

Case in point, this weekend's New York Times article on Hewlett-Packard ( HPQ), a stock which Cramer owns for his charitable trust, Action Alerts PLUS.

According to the article, Hewlett-Packard has lost its drive to innovate and to keep up with leaders like Apple ( AAPL) or Amazon ( AMZN).

While acknowledging the article is spot on and well written, he said it's not innovation that yields results.

Cramer said there are many companies that have tried to imitate the likes of Apple, only to fail. Hewlett-Packard, however, has taken a different approach and focused on operations that deliver the earnings Wall Street is looking for.

In its most recent quarter, Hewlett-Packard saw PC shipments rise 3% in an industry that shrunk 7%. The company reiterated its earnings guidance just last week on the strength of its printer business and its server and storage business, which is also holding up well, he said.

On a historical level, Hewlett-Packard is cheap, trading at just 9.7 times earnings compared to a historical average of almost 17 times earnings. "Being sexy doesn't move stocks," he said, adding it's results that matter on Wall Street.

On the Rebound

Cramer said there's one dog of a business that's starting to turn around, and that's the oil tanker business. After day rates for tankers hit 7- to 10-year lows, earlier this year, the tanker business is starting to rebound, taking its two largest players along with it.

Cramer reminded viewers that the tanker business is not about the oil price, but instead about supply and demand. How much money a tanker company can make is just based of how much oil needs to be shipped, and how many tankers are available to do the shipping, he said.

This equation is being helped on two fronts, he explained. First, the demand for oil is starting to stabilize and even rise in some markets. Second, the supply of ships has never been lower, thanks to a ban next year on single-hulled tankers that are not environmentally friendly. Under the ban, 110 single-hulled tankers will be taken out of commission, leaving nothing but riches for those double-hulled tankers that remain.

Cramer said there are two ways to play this pending recovery: Nordic American Tanker ( NAT) and Frontline ( FRO).

Investors can take their pick, he said. Nordic American is up 99% from its recent lows, while Frontline is up 180% from its lows. Both companies pay hefty dividend yields, 8.2% for Nordic American, and 5.2% for Frontline.

Cramer said Nordic American probably has the larger upside potential, while Frontline provides more stability in the longer term. Either way, Cramer said the tanker business is no longer a dog.

Outrage of the Day

Cramer fired another shot across the bow of the ultra-short ETF market and ProShares, the company that operates many of them. In a recent filing, ProShares asked the SEC for permission to create a new class of triple-weighted short funds that Cramer says need to be stopped.

Cramer again begged SEC chair Mary Shapiro to put a stop to all ultra-short funds, which he claims have no value to regular investors. Cramer said there's no place for these funds in today's markets, as they only allow day traders to evade margin rules and bang down entire sectors of stocks undeservingly.

According to Cramer, the ultra-short funds have cost taxpayers hundreds of billions of dollars in bailout funds to prop up what would otherwise be crippled, but not failed, financial entities.

"These funds make a mockery of the rules and need to be banned," he said.

Lightning Round

Cramer was bullish on Johnson & Johnson ( JNJ), Corn Products International ( CPO), Enterprise Products Partners ( EPD), ( CRM), ConocoPhillips ( COP), Schlumberger ( SLB), PPL Corp ( PPL), Consolidated Edison ( ED), Dominion Resources ( D), Terra Nitrogen ( TNH) and Hershey Foods ( HSY).

Cramer was bearish on Plum Creek Timber ( PCL), Linn Energy ( LINE), National Oilwell Varco ( NOV), AGCO Corp ( AG) and Fresh Del Monte Produce ( FDP).

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

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At the time of publication, Cramer was long ConocoPhillips, Hewlett-Packard.

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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