Cramer's 'Mad Money' Recap: The Bears' Negative Script (Final)

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NEW YORK ( TheStreet) -- "It's my turn to set the record straight," Jim Cramer told the viewers of his "Mad Money" TV show Wednesday.

He said in a topsy turvy market like today, its prudent to take some time out to prove why all of the bears are wrong.

For weeks now, Cramer has been attacking the bears, the ones that are negative no matter what, the ones that think the sky is falling, and coincidentally, the ones that have been keeping investors out of the markets and costing them a fortune.

According to the bears, the Republican win in New Jersey yesterday occurred because of local issues. But Cramer said the election results are clearly a slap in the face for the Democrats, and make the healthcare stocks, like Wellpoint ( WLP), an even bigger buy.

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According to the bears, Warren Buffet's purchase of Burlington Northern Santa Fe ( BNI) just shows that the famed investor doesn't know what he's doing. But Cramer said Buffet's bet on the U.S. economy is spot on.

According to the bears, there's both a bubble and crash coming in commercial real estate. But Cramer noted that there simply can't be both at the same time.

And the list goes on and on, said Cramer. The bears say retail sales were strong only because of unseasonably cold weather. The bears have no answer for why auto sales were strong. Weren't sales supposed to crash after Cash For Clunkers expired?

Cramer said these bears always think the world is coming to an end, but all they really do is cause you to miss out. "Listening to these bears is a great way not to make money," he concluded.

Post Mortem

In the "Executive Decision" segment, Cramer spoke with Hank Nothhaft, president and CEO of Tessera Technology ( TSRA), a stock which dropped from $26 to $20 after reporting a weaker-than-expected fourth-quarter outlook.

Nothhaft characterized the shortfall as a massive disconnect on expectations. He said there was nothing in his last interview on "Mad Money" a month ago that he would change. However he noted that the company needs to be more transparent with its volume pricing discounts so that analysts can better gauge Tessera's earnings.

Nothhaft said that things are still "on track" at Tessera, and the company delivered on both its revenue and earnings forcasts for its third quarter. He said that his entire management team was disappointed by the analysts' reaction to the current guidance.

Cramer commended Nothhaft for coming back on the show and defending himself, but also faulted the CEO for over promising and under delivering on the earnings forecast, a recipe for disaster on Wall Street. He said that Tessera still has $8 in cash on the books and a strong future ahead of it. "This one will live to play again," he said.

A Speculative Play

Cramer spoke with Dan Junius, president and CEO of ImmunoGen ( IMGN), another company working to fight cancer. Cramer called ImmunoGen a speculative play in the war on cancer, but noted that the company's breast cancer drug, T-DM1, is seeing strong results in clinical trials and could receive approval in late 2010.

Junius agreed with Cramer's characterization of ImmunoGen as speculative, saying that biotechs in general are speculative, but the company's business model, which relies on multiple compounds and strong business partners, helps take some of that risk out of the equation.

Junius also explained that when ImmunoGen partners with other drug companies they often receive up front money, as well as milestone payments at varies stages, to help with development costs. Thus the company is not solely dependent on generating revenues, nor receiving outside funding to continue operations.

When asked why ImmunoGen is not a takeover target for a larger drug company, Junius said that a takeover is unlikely given the many partnerships it has with all of the larger players. He said ImmunoGen's strategy is to continue to develop their platform of drugs in house.

Am I Diversified?

Cramer talked with callers about their portfolios have what it takes. The first caller's portfolio included Suncor ( SU), United Healthcare ( UNH), Nvidia ( NVDA), Seagate Technology ( STX) and Kimberly Clark ( KMB).

Cramer said this portfolio had too much technology. He said h'd sell Seagate in favor of a financial stock like JPMorgan Chase ( JPM), a stock which he owns for his charitable trust, Action Alerts PLUS .

The second caller's top holdings included Cisco ( CSCO), CSX ( CSX), Ford ( F), Kraft ( KFT) and Wells Fargo ( WFC).

Cramer said to sell Kraft in favor of General Mills ( GIS), but otherwise called this portfolio is diversified.

Lightning Round

Cramer was bullish on Human Genome Sciences ( HGSI), Goldman Sachs ( GS), Sims Group ( SMS), EnCana ( ECA) and Wendy's/Arby's Group ( WEN).

He was bearish on Seattle Genetics ( SGEN).

Cramer said ImmunoGen is a great speculative buy ahead of the next round of clinical data due out in December.

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

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For more of Cramer's insights during the Lightning Round, click here .
At the time of publication, Cramer was long Goldman Sachs, JPMorgan Chase, Wells Fargo.

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."

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