Cramer's 'Mad Money' Recap: Beyond China's Reach (Final)

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NEW YORK ( TheStreet) -- When it comes to determining which way the market is headed, Jim Cramer told the viewers of his "Mad Money" TV show that "China is in charge."

He said that China is the prism through which all of your market decisions must be made, and it just so happens that China has just created a huge opportunity in the fertilizer sector.

Cramer said when it comes to commodities like steel and copper, corn and fertilizer, the U.S. is no longer in control. It's China that decides whether these commodities go higher or lower. It wasn't too long ago, he said, that China used 10% of the world's copper, while the U.S. used 30%. Today, that number is reversed.

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That's why when building copper inventories took the Shanghai composite index lower, and in turn the U.S., commodity stocks sharply lower in recent days, investors need to take notice, said Cramer.

He recommended Potash ( POT), a stock which was down $1.28 a share today, as one stock that, despite a strong outlook, was taken needlessly down and now represents a great value.

Cramer said Potash doesn't have a lot of Chinese exposure, and in fact only derives 12% of its sales from China. However after a horrible 40% decline in global demand for fertilizer, Cramer said Potash is now poised for a serious recovery.

According to Cramer, the long-term trends of a growing global population and increased demand for better food remain intact and will keep Potash growing for years to come.

He said that Potash manufacturers all three major classes of fertilizers and remains one of the healthiest and strongest of the fertilizer stocks. Additionally, the drop in fertilizer demand last year is self-correcting, said Cramer, as farmers can't neglect their land for long without suffering consequences.

Cramer said Potash is likely not done going lower, and he would buy it in stages as it trends lower. However, he said, once the Chinese induced selloff is complete, Potash is headed higher.

Gold Looking Good

Cramer has long said that gold should be a part of every investors' portfolio. He once again welcomed Sean Boyd, CEO of Agnico-Eagle Mines ( AEM), to the show to argue why.

Boyd said that investors should disregard his company's sometimes confusing earnings, which include currency translations, and instead focus on the company's ramp-up in production output and its planned expansions that continue into 2014. He said that as Agnico-Eagle continues to increase it's production, it will keep producing gold at around $320 an ounce, far below the industry average.

When asked further about the expansions, Boyd said that his company never hedges or sells its production forward, so as the price of gold continues to rise, Agnico-Eagle will see all of those gains. He said that with gold already trading over $900 a ounce, now is the perfect time to the company to ramp up its expansion efforts.

Cramer said as the value of global currencies erodes from stimulus and bailouts and fears of inflation rise, gold just keeps getting better. He said that Agnico-Eagle, with it's low cost production and continued expansion, remains his favorite in the group.

Focused Portfolio

Cramer also welcomed Gary Rodkin, president and CEO of ConAgra Foods ( CAG), to the show to discuss how that company is fairing amidst falling commodity and advertising costs.

Robkin said ConAgra is doing much better this year than it was last year, when commodity prices were skyrocketing. He said the company sees only moderate inflation in commodity costs, allowing the company to be in a much better position than it was last year.

Robkin also said ConAgra also has a more focused portfolio of brands, now that the company has sold off its commodity futures trading operations, along with its processed meat divisions. He said the company now has a "foundation to win."

When asked about ConAgra's dividend, currently yielding 3.8%, Robkin said he feels the company has the right formula to offer a safe dividend. He said the company now has leverage through scale in ways it never had before. ConAgra delivers great value through its portfolio of great brand name items, he said.

Cramer continued to throw his support behind Robkin and ConAgra Foods.

Am I Diversified?

Cramer played "Am I Diversified" with callers to see if their portfolios have what it takes. The first caller's portfolio included Bank Of America ( BAC), Cheesecake Factory ( CAKE), Disney ( DIS), Microsoft ( MSFT) and Pepsico ( PEP).

Cramer said this portfolio was "fabulous."

The second caller's top holdings included Philip Morris ( PM), AT&T ( T), Excelon ( EXC), Dow Chemical ( DOW) and Alcoa ( AA).

Cramer called this portfolio complete and utter diversification and gave it his blessing.

Lightning Round

Cramer was bullish on Chipotle Mexican Grille ( CMG), XTO Energy ( XTO), Siliconware Precision Industries ( SPIL), Best BUY ( BBY), CBRL Group ( CBRL) and Buffalo Wild Wings ( BWLD).

He was bearish on Radioshack ( RSH) and Pantry ( PTRY).

-- Written by Scott Rutt in Washington.

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At the time of publication, Cramer was long Bank of America, Pepsico.

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."

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