Cramer's 'Mad Money' Recap: My Mobile Internet Index (Final)

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NEW YORK ( TheStreet) -- "When you get across the board weakness like today, use the opportunity to buy into the themes that are working," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday.

He said today's decline in the market was a gift, and investors need to use the dip to buy into what he calls the "Mobile Internet Tsunami," a multi-year trend that could be as big as the personal computer and Internet revolutions.

Cramer unveiled his new "Mobile Internet Index," a group of 21 stocks that encompasses what he considers the best when it comes to what's needed to make the mobile Internet a reality. Cramer said this index will use today's closing prices, and start at a value of 100, to tracks the performance of these great companies.

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Some of the notable stocks in the index include Google ( GOOG), the leader in the Web space, along with device makers Apple ( AAPL) and Research In Motion ( RIMM).

Cramer said the index also needs the component makers, such as Starent Networks ( STAR) and backbone providers like Cisco ( CSCO), a stock which Cramer owns for his charitable trust, Action Alerts PLUS , and its smaller speculative rivals Ciena ( CIEN) and Tellabs ( TLAB).

Cramer's index also included companies providing text messaging services, Tekelec ( TKLC), and antenna specialists like CommScope ( CTV). Finally, Cramer said there will be a need for more storage, and that means Sandisk ( SNDK).

Cramer said his Mobile Internet Index is the place to be, especially on weak days like today.

The remainder of the stocks in the index include: Palm ( PALM); ADC Telecom ( ADCT); Qualcomm ( QCOM), which is in his charitable trust; Broadcom ( BRCM); NetLogic ( NETL); Xilinx ( XLNX); Skyworks Solutions ( SWKS) RF Micro Devices ( RFMD); ON Semiconductor ( ONNN); Cypress Semiconductor ( CY); and Tessera Technologies ( TSRA).

Future of Natural Gas

Cramer once again welcomed Andrew Littlefair, president and CEO of Clean Energy Fuels ( CLNE), get an update on the natural gas industry and its prospects in Washington.

Littlefair said there's been a big change in Washington's attitude towards natural gas in the past year. While notably absent from Obama's energy policy, the congressional leadership now seems to be in support of converting the nation's estimated 3 million 18-wheelers to run on the fuel, he said.

According to Littlefair, making the move to natural gas for these heavy trucks could save up to 2.7 million barrels of oil per day, a huge number in comparison to the savings in the light car and truck segments. He said the concept is beginning to gain traction both in Congress, and in practice, as companys have already begun testing natural gas vehicles.

Cramer said he continues to support Clean Energy, but noted the company is speculative. If natural gas gets adopted by Congress, the upside could be huge, but if not, the company's outlook is murky at best.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleagues Dan Fitzpatrick and Rick Bensignor over the chart of Family Dollar ( FDO), a stock recently recommended by Cramer.

According to Fitzpatrick, the move in Family Dollar is over, with the chart displaying lower highs as the big money seems to be moving out of the stock. Bensignor concurred with Fitzpatrick, noting that the stock has moved away from trend line and appears to be stalling.

Cramer said these comments made him re-examine his thesis that Family Dollar's increased acceptance of food stamps would bolster the stock. He concluded that with Family Dollar now going up against tougher comparisons from last year, the bump from food stamps might not be enough.

Cramer also noted that Family Dollar is still priced from a recession, and is likely to be under more pressure as the recovery continues. Additionally, rival Dollar General is set to come public soon, and is also likely to weigh on the stock.

With all of these negatives mounting, Cramer concluded that now is not the time to be buying shares of Family Dollar.

Bullish on Citigroup

In his "Eureka Moment" segment, Cramer said the sellers of Citigroup ( C) are in the wrong.

Cramer acknowledged that Citigroup has issues with mortgage and credit card risk, along with every other bank, and that the government's 34% stake in the company, along with FDIC chairman Sheila Bair's relentless attacks on the company, are indeed worrisome.

But Cramer believes the government will be selling its stake as quickly as possible after Sept/ 10, the first day its allowed to sell. He said once the government exits, things will be looking up for Citi, and that's why he remains bullish on the stock.

Lightning Round

Cramer was bullish on Johnson & Johnson ( JNJ), Bristol-Myers Squibb ( BMY), Bunge ( BG), Time Warner ( TWX) and Bank of America ( BAC).

He was bearish on Tenneco ( TEN), Archer-Daniels-Midland ( ADM), News Corporation ( NWS), Allegheny Technologies ( ATI) and Harman International ( HAR).

-- Written by Scott Rutt in Washington

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At the time of publication, Cramer was long Cisco, Qualcomm, Bristol-Myers Squibb, Bank of America.

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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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 TheStreet.com. 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 TheStreet.com, 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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