NEW YORK ( TheStreet) -- "When it comes to the stock market, joblessness in the U.S. isn't a bad thing," Jim Cramer told the viewers of his "Mad Money" TV show Monday. "In fact," he continued, "it's been a positive thing for countless companies that have laid off workers and are profiting as a result." Cramer said there will continue to be layoffs and double-digit unemployment in the U.S. for quite some time, but that doesn't mean that companies won't make money or that stocks won't head higher. He said the sad reality is that there's an inverse relationship between employment and profits.
Electronic Health Care Record BoomIn the "Executive Decision" segment, Cramer spoke with Glen Tullman, CEO of Allscripts-Misys Healthcare ( MDRX), a stock Cramer has remained bullish on, despite health care reforms in Washington. Tullman declared 2010 to be the "year of the electronic health record," saying that this will be the year a large percentage of doctors and health care providers finally adopt the technology. He noted that sales are up 30% year over year, and most of the federal stimulus package has not hit the sector yet. Tullman explained that Allscripts has $40 billion to help their clients migrate to electronic records, which can cost as much as $44,000 per physician. Yet despite the costs, Tullman said Allscripts is making it easy for doctors by making their software easier to install, guaranteeing it meets all federal guidelines, and offering flexible payment terms. Tullman also noted that his company has great partners, with hospitals and larger providers referring their affiliated doctors to the company. He said the company's true promise of connecting disparate systems so that patients can avoid filling out forms with the same information over and over again will come to fruition as momentum grows. Cramer said the Allscripts story remains "a good one," and said that with the stock down in recent days, he'd pull the trigger.
Under the HoodCramer went under the hood of the auto industry to find the best auto part stocks for investors' portfolios. He said this sector's time has finally come, as the auto sector has come roaring back to life thanks to turnarounds at Ford ( F) and others. But Cramer said there's more to the sector that increasing auto sales. He said that many money mangers are underweight the sector, meaning that if they want their funds to beat the S&P 500 this year, they need to load up big on the group, and soon. Given these two bullish trends, Cramer recommended Johnson Controls ( JCI), as the "best of breed" in the sector. He said this company is the cheapest, most consistent earner in the group, which is why he owns the stock for his charitable trust,
Mad MailCramer told viewers that patience does matter. Case in point, Cloud Peak Energy ( CLD), a stock Cramer recommended on its IPO, only to watch its price fall in weeks that followed. Today however, the stock received an upgrade as the company is poised to benefit from a recovery in the coal market. Cramer said when investors do their homework, they will see weakness as opportunity, which is exactly what the decline in Cloud Peak represented. Cramer told a viewer that he still likes Fluor ( FLR), a stock which he owns for his charitable trust,
Lightning RoundCramer was bullish on Verizon ( VZ), Teva Pharmaceutical ( TEVA) and Corning ( GLW). He was bearish on 3Com Corporation ( COMS), Mylan Laboratories ( MYL), Sallie Mae ( SLM) and Constellation Brands Inc ( STZ).
Final NoteCramer told viewers to buy Electronic Arts ( ERTS) on any sign of weakness Tuesday. -- Written by Scott Rutt in Washington D.C. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.