NEW YORK ( TheStreet) -- While tech stocks rallied today, Jim Cramer told the viewers of his "Mad Money" TV show Wednesday that Google ( GOOG) may have hit a speed bump that is serious enough to cause him to lower his price target on the stock. Cramer said that any bump in the road can be serious for high-multiple stocks like Google, which are often priced for perfection. Thus, the company's standoff over cyber-attack issues with China must be taken seriously, he said. Even if pulling out of China means only a few cents off of Google's earnings, he said the effect on its stock price can be sizable.
The Lithium PlayWhen it comes to auto parts, batteries are the place to be, Cramer told viewers. But with most battery makers buried deep inside huge conglomerates, is there a way to make money from the coming boom in hybrid cars? Cramer said there is, but it's not where you'd expect. Cramer said the natural choice would be to invest in two fairly new stocks, A123 Systems ( AONE) and Ener1 ( HEV), but that would be a mistake. While both companies have received millions of dollars in government assistance and seem to be all the rage, he said neither company's business model has been proven. "Just because they've gotten government money doesn't mean they're going to sell batteries," he said. This skepticism is also share among short sellers, who already have a huge short interest in A123 and Ener1. Cramer said he'd steer clear of both stocks. So with battery makers off the table, Cramer instead turned to what's inside the batteries, and for hybrid batteries that's lithium. Cramer said there's only one company he thinks of when he hears lithium, and that's Chemical & Mining of Chile ( SQM). While the company is mainly a fertilizer play, 30% of the company's revenues comes from lithium, a number which is on the rise as batteries play more important roles in transportation. Cramer said the stock has shed 6% since he last recommended Chemical & Mining on June 16. But he said now that fertilizer, the other 70% of the company's revenues, has stabilized, he's willing to double down and buy more.
Domino's New LookAfter years of slumping sales, Cramer said Domino's Pizza ( DPZ) is once again beginning to deliver. He changed his tune and turned positive on the stock. According to Cramer, Domino's understands what it's been doing wrong and changing course to turn itself around. The company has introduced a new pizza recipe, along with a new ad campaign, to change the tide in the domestic pizza wars. The company also has strong international sales and is benefitting from ailing competitors, said Cramer. With over 9,000 locations across the globe, Cramer likened Domino's to an ATM that just throws off cash. He said the company's international sales, which had accounted for 30% of total sales, now account for 45%, and the company still has plenty of room to grow. Turning back domestically, Cramer said Domino's is also benefitting from an implosion at Pizza Hut, part of Yum! Brands ( YUM), where same store sales plummeted 13% in its most recent quarter. Domino's trades at just nine times its earnings, while rivals Papa John's ( PZZA) trades at 12 times and Pizza Hut trades at 13 times. Cramer said giving Domino's a comparable multiple would make it a $14 stock, and given its strong international growth and new pizza, he think it could do even better.
Am I Diversified?Cramer spoke with callers to see if their portfolios have what it takes. The first caller's portfolio included Procter & Gamble ( PG), Caterpillar ( CAT), Wal-Mart ( WMT), Waste Management ( WM) and Skyworks Solutions ( SWKS). Cramer said this portfolio was perfect and well played. The second caller's top holdings included Chesapeake Energy ( CHK), Cliffs Natural ( CLF), Dryships ( DRYS), Diana Shipping ( DSX) and JDS Uniphase ( JDSU). Cramer said this portfolio had two of a kind with Dryships and Diana. He advised selling Dryships in favor of a health care stock. The third caller had Apple ( AAPL), AT&T ( T), Duke Energy ( DUK), Freeport McMoRan ( FCX) and Pfizer ( PFE) as their top five stocks. Cramer said this portfolio was also perfectly diversified.
Lightning RoundCramer was bullish on Bucyrus International ( BUCY), Southern Peru Copper ( PCU), Boise ( BZ), Temple-Inland ( TIN) and International Paper ( IP). He was bearish on Manitowoc ( MTW) and Pitney Bowes ( PBI). -- Written by Scott Rutt in Washington D.C. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.