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NEW YORK ( TheStreet) -- "When the market sells off, you need a long term thesis to fall back on," Jim Cramer told viewers of his "Mad Money" TV Show Wednesday. He said whether the markets are engaged in a routine pullback or are catching a cold from half way around the world, investors need to stick with the stocks they know are working. Such is the case today, he said, when not even a Republican win in Massachusetts could save the markets from Chinese economic policies. But regardless of the headlines, Cramer said investors need to always focus on the future, and he found the future in an article in the The New York Times.
Optimistic SignsIn the "Executive Decision" segment, Cramer sat down with Ron Hermance, chairman, president and CEO of Hudson City Bancorp ( HBAN), a stock which is flat for the year, despite continued strength in earnings. Hermance painted an optimistic picture at Hudson City, saying that the company wrote off only 0.25% of its loan portfolio last year, eight times less than the industry average. In addition, Hudson wrote $9 billion worth of new mortgages, many of which with large down payments. Over the last 10 years, the stock of Hudson City has risen 583%. When asked about expansion and acquisitions, Hermance said that while now is the opportune time to expand rapidly into hot areas like Florida, "it's not their style," and they're looking at a more disciplined approach. Turning to the future, Hermance said that properties are starting to sell again and delinquencies are starting to recede, but he noted that those homeowners who are in trouble are not benefiting from government loan modification program.
Foreign Oil AddictionIn a special interview, Cramer welcomed famed investor and oil tycoon Boone Pickens to the show to discuss his latest efforts to break America's addiction to foreign oil by embracing natural gas as a bridge fuel for the future. Pickens said that America's dependence on foreign oil is most definitely a significant national security issue. He said the U.S. State Department recommends its citizens don't visit hostile countries, yet we import 4 million barrels a day of oil from these same countries. Pickens blamed the debate over health care for putting the nation's energy policy on hiatus, but said that he's confident that the country will have a natural gas bill by Memorial Day. To date, Pickens has spent $62 million on his efforts to waken the nation to the fact that the U.S. has the equivalent of 350 billion barrels of oil, twice that of Saudia Arabia. Pickens laid out a simple plan that calls for building a national gas infrastructure to allow the sale of 8.3 million natural gas trucks and buses, something that will create tens of thousands of jobs. He said that with just that small number of natural gas vehicles on the road, the U.S. would cut its oil imports in half. When asked why its taken so long for natural gas to evolve to this level, Pickens said the U.S. has always had the gas on our soil, the technology just wasn't there to access it. But, he said, the technology is here now.
Mad MailCramer followed up on two stocks that stumped him earlier in the week. He said that Analogic ( ALOG) is not a bad company, but its earnings are too dependent on selling into hospitals. He said he would not be a buyer. Likewise with Neutral Tandem ( TNDM), another stock that stumped Cramer. He said the company has a good business model, but competition is taking its share and he would not be a buyer. Cramer told a view that Nisource ( NI), with its 6% dividend yield, is a stock that he still likes, and that Linear Technology ( LLTC)is a great mobile Internet stock.
Lightning RoundCramer was bullish on Air Products and Chemicals ( APD), Chesapeake Energy ( CHK), Marathon Oil ( MRO) and Polo Ralph Lauren ( RL). He was bearish on Clearwire ( CLWR), BPZ Resources ( BPZ) and True Religion Apparel ( TRLG). -- Written by Scott Rutt in Washington D.C. To watch replays of Cramer's video segments, visit the