Cramer's 'Mad Money' Recap: Don't Let the Bears Fool You (Final)

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NEW YORK ( TheStreet) -- "Now that we've pierced Dow 10,000, look for a whole new set of excuses from the bears," Jim Cramer told the viewers of his "Mad Money" TV show Wednesday.

And just like the current set of excuses, these too will be surmounted and disproven, he continued.


Jim Cramer's signing events near New York continue for his newest book, Getting Back to Even.

Cramer Book Signings Near New York

Wednesday, Oct. 14, 7 p.m.: Borders, Bridgewater, NJ (290 Commons Way)
Tuesday, Oct. 20, 7 p.m.: Mendham Books, Mendham, NJ (84 East Main St.)
Tuesday, Nov. 17, 7 p.m.: Barnes & Noble, Manhattan (33 East 17th St.)


"Don't blame the bears," said Cramer, this is what they do. Bears make up any excuse they can think of to scare investors out of the market, he said. Whether it be oil prices, or gold prices, or jobless claims, or lagging retail sales, the bears will ALWAYS have a reason why you should sell, said Cramer.

And when the macro tactics don't work, the bears target individual stocks, said Cramer. The bears were all over the earnings calls of Johnson & Johnson ( JNJ) and JPMorgan Chase ( JPM), a stock which Cramer owns for his charitable trust, Action Alerts PLUS , with all sorts of reasons why the valuations are too high.

Today's target was Intel ( INTC). Cramer said despite the pundits attacking Intel's earnings, the chipmaker has the wind at its back, with falling costs, rising sales, and new product cycles fueled by tiny netbooks and Microsoft's ( MSFT) new Windows 7. He said he's sticking by his $25 price target for Intel and would use any weakness in the stock to "pile in."

Cramer said don't be fooled by the bears, the markets are headed higher, no matter what the bears might say.

Homeland Security Tech Play

In the "Executive Decision" segment, Cramer spoke with William Van Vleet, director, president and CEO of Applied Signal ( APSG), a high-tech homeland security company.

Van Vleet explained that his Applied Signal provides communications and electronic signaling intelligence solutions. He said that his company's competitive advantage is that they manufacture miniature receivers that can be deployed in unmanned aerial vehicles or in backpack-sized cases that can follow troops anywhere.

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Van Vleet said that even if troops levels overseas are drawn down over time, his company's technology stays on the front lines as it allows troops to stay on top of dangerous situations.

Van Vleet also acknowledged that investing in his company is sometimes difficult given the classified nature of many of the company's products. He said that Applied Signal is working on providing more insight into its programs and will be disclosing as much as it can to potential and current investors.

Cramer said that Applied Signal is an interesting small-cap stock that fits in with long-term trends in homeland security. He recommended that viewers visit the company's Website and learn more.

Mad Mail

Cramer told a viewer that stocks like AT&T ( T) and Consolidated Edison ( ED) need low interest rates, and with the economy heating up, interest-rate fears might start keeping these stocks lower.

Cramer told another viewer that sometimes he hates having unexciting stocks like Procter & Gamble ( PG) in his charitable trust, but then he remembers that a good, diversified portfolio needs stable stocks as well as high fliers.

Am I Diversified?

Cramer spoke with callers to see if their portfolios had what it takes. The first caller's portfolio included Ford ( F), AT&T ( T), HD ( HD), Linn Energy ( LINE) and Allscripts ( MDRX).

Cramer said this portfolio has everything he could ever want in a portfolio.

The second caller's top holdings included Family Dollar ( FDO), Frontier ( FRO), Intel ( INTC), ExxonMobil ( XOM) and Pepsico ( PEP).

Since ExxonMobil and Frontier are both oils, he recommended selling Frontier in favor of a high yielding drug stock like Bristol-Myers Squibb ( BMY).

The third caller had RioTinto ( RTP), US Steel ( X), Bank Of America ( BAC), Qualcomm ( QCOM) and Citigroup ( C) as their top five stocks.

Cramer said one of the two banks stocks had to go in order to be better diversified.

Lightning Round

Cramer was bullish on Freeport-McMoRan ( FCX), ON Semiconductor ( ONNN), McDonald's ( MCD), Fifth Third Bancorp ( FITB), Huntington Bancshares ( HBAN), NVIDIA ( NVDA), Calgon Carbon ( CCC) and TCF Financial ( TCB).

He was bearish on EnergySolutions ( ES).

Final Note

Cramer said that he's still a fan of Xilinx ( XLNX), which just reported a great quarter and is part of his Mobile Internet Index.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.

For more of Cramer's insights during the Lightning Round, click here .
At the time of publication, Cramer was long JPMorgan Chase, Procter & Gamble, Pepsico, Bristol-Myers Squibb, Bank of America and Qualcomm.

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."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com 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 TheStreet.com, 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 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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