Cramer's 'Mad Money' Recap: Don't Ignore the Fundamentals (Final)

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NEW YORK ( TheStreet) -- "This is a crazy, ridiculous time in the markets," Jim Cramer told the viewers of his "Mad Money" TV show Thursday.

He said it's a time where the fundamentals of individual companies don't seem to matter, and stock prices trade on the whims of China, Greece and the price of oil,

For a company like Apple ( AAPL), a stock which Cramer owns for his charitable trust, Action Alerts PLUS , Cramer said it makes no sense that the stock rallied today, on positive market news, and not over the last few days, when there was plenty of Apple news.

Cramer said the markets ignored stories of how Apple may sell TV shows on iTunes for just 99 cents, how the company now commands 25% of the smartphone market, and how Apple and its growing base of high profile stores have made it the fifth largest electronics retailer in the country. Instead, the stock languished. But today, on a rally in copper and positive news from Greece, Apple soared, he said.

Cramer said Apple is not a cyclical stock, and doesn't need worldwide growth to prosper. He said investors should have been using the down days to buy Apple, on the hopes that the company's fundamentals will once again matter.

Cramer said he believes the U.S. economy is growing, and by years' end will be creating jobs, albeit slowly. He said it's silly that all stocks, regardless of their fundamentals, are trading in lock step with global economic news. Apple, he said, has fabulous fundamentals, and deserves to be going up. So when the markets aren't paying attention, investors need to be buying.

Hang Up on Garmin

In the Thursday "Sell Block" segment, Cramer took aim at personal navigation giant Garmin ( GRMN), a stock who's business, he said, is on life support.

Cramer said Garmin may be the first casualty of the Mobile Internet Tsunami, as more and more consumers are opting for built-in navigation on their smart phones, rather than stand-alone devices.

Back in 2005, Garmin's stock exploded, as personal navigation devices for cars became all the rage. After impressive growth between 52% and 62% a year, personal navigation devices now account for a whopping 73% of Garmin's overall business.

But Cramer said stand-alone navigation has now run its course, and Garmin's future earnings power have been critically wounded. Remember the Palm Pilot? Cramer said personal digital assistants were also once all the rage, but newer technology has simply made them obsolete.

Cramer said Garmin's once proprietary technology has now become a commodity, with cell-phone maker Nokia ( NOK) announcing that it'll include free navigation on all its smart phones. "Why pay extra?" asked Cramer.

By removing personal navigation from Garmin's business model, Cramer estimated Garmin's true value to be around $26 a share, a full 20% lower than where it trades today. He said the company's long term story is simply unacceptable, and investors need to sell, sell, sell.

Boosting Dividends

Cramer turned the spotlight on pest control giant Rollins ( ROL) as the next stock in his series of outstanding companies raising their dividends in a weak market.

Investors may know Rollins as Orkin, a brand that commands 20% market share in the U.S. pest control market. Rollins boosted its dividend 28% last week, from 7 cents a share to 9 cents, and currently yields 1.8%.

Cramer said Rollins is like an ATM machine that generates cash, with 40% of its business in commercial pest control, 40% in residential and the remaining 20% focuses on termite control. The company's recent acquisition gives it new relationships with home builders, allowing it to get in on the ground floor with home owners.

Cramer said there's a lot to like at Rollins. The company is improving customer retention and sales rates, and is expanding overseas with 14 franchises so far. Rollins trades at just one point off its 52-week high, so Cramer suggested waiting for a pullback before jumping in. He said Rollins is definitely a stock worth looking into.

Mad Mail

Cramer followed up on L-1 Identity Solutions ( ID), a stock which he put in the penalty box in January. Cramer said today the company redeemed itself as it began to look for "strategic alternatives" to unlock its true value.

Cramer also gave the nod to FLIR Systems ( FLIR), saying that that company's dip is a buying opportunity. Vulcan Materials ( VMC), however, is still on hold, said Cramer, as the company did not mention if federal stimulus money has yet hit the company.

Cramer told a final viewer that he's worried about Adobe ( ADBE), whose flash video player is coming under attack by Apple and others.

Lightning Round

Cramer was bullish on Black Hills ( BKH), SCANA ( SCG), Symetra Financial ( SYA), ConocoPhillips ( COP), Weatherford International ( WFT) and Cypress Semiconductor ( CY).

He was bearish on Smithfield Foods ( SFD), Best Buy ( BBY) and First Solar ( FSLR).

-- Written by Scott Rutt in Washington D.C.

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 Apple.

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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