Cramer's 'Mad Money' Recap: Connecting the Dots in Tech (Final)

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NEW YORK ( TheStreet) -- "Get over your aversion to tech stocks and start buying," Jim Cramer told viewers of his "Mad Money" TV show Monday.

He said it's time now to invest in a once-in-a-lifetime product cycle in tech.

Cramer said the endless skepticism surrounding tech stocks is moronic. He doesn't understand why investors aren't seeing the huge move towards mobile devices, like smart phones, that's clearly in bull market mode. He said despite countless strong earnings and fabulous fundamentals, investors are seemingly oblivious to just how good things are in the tech sector.

Flash memory maker SanDisk ( SNDK) was the latest company to report better-than- expected numbers, following others like Skyworks Solutions ( SWKS) and Triquint Semiconductor ( TQNT), said Cramer. Normally there would be a ripple effect that would take the whole group higher but not this time, he said.

Cramer made it very clear that stocks like Apple ( AAPL), a stock which he owns for his charitable trust, Action Alerts PLUS , is not expensive, even with its $200 price tag.

He said if business is robust at all of the semiconductor companies, then it has to be good at Apple and Intel ( INTC) and Hewlett-Packard ( HPQ).

Cramer said if there were any other sector, like housing or autos or aerospace, the pin action from the strong earnings of a few key players would be immediate and sizable. So with the pin action totally lacking in technology, he said there's never been a better time to buy in. "I've never seen tech stocks this cheap," he concluded.

Plenty of Natural Gas

In the "Executive Decision" segment, Cramer spoke with Chip Johnson, president and CEO of Carrizo Oil & Gas ( CRZO), a wildcat driller that was given a valuation of $34 a share by JP Morgan Chase, despite its $24 stock price.

Johnson said he still sees a lot of upside in the natural gas stocks, especially those that are drilling and adding reserves at low prices, which are mainly oil shale companies like Carrizo. He said that Carrizo still makes money, even with the price of natural gas at lower levels, thanks to its low production costs.

Johnson also confirmed that foreign oil conglomerates are increasingly taking notice of oil shale's potential, and are buying in or buying up companies with oil shale exposure. He said the oil shale in Pennsylvania is proving to be the biggest shale play in the entire U.S., adding it has the lowest break-even price given its proximity to customers in the Northeast.

Like Cramer, Johnson was also surprised at President Obama's lack of support thus far for natural gas. He said this is the time for natural gas and the need to take advantage of it. With so much supply now available, Johnson said the risk of seeing a spike in natural gas prices is no longer a problem.

Cramer said JP Morgan's price target said it all, Carrizo is worth at least $34 a share.

Stellar Hotel Pick

Cramer went out on a limb to recommend Starwood Hotels ( HOT), a stock which he's never recommended before, but one that recently delivered one of the best earnings calls of the quarter.

Cramer said Starwood not only delivered a next-to-flawless fourth quarter, beating estimates by 29 cents a share, but it also raised its guidance for 2010, citing a strong recovery in corporate and leisure travel.

Starwood, which operates the Westin and Sheraton chains of hotels, among others, has been doing everything right, said Cramer. The company used the downturn to cut costs and close underperforming hotels, while renovating and opening new hotels at bargain basement prices. The company is now seeing occupancy rates increasing 2.1%.

Starwood also noted an uptick in international travel, where the company derives 50% of its revenues. With a growing middle class in China and in other areas of the world, Starwood management said they see a secular trend in global travel, and expect to see increased growth.

Cramer said Starwood is a buy given this fabulous quarter and bullish outlook.

Outrage of the Day

Cramer sounded off against the three departing board members of Citigroup ( C). "Where is the accountability?" he asked.

Cramer said these board members saw the near destruction of the company, yet bear no accountability or punishment for literally falling asleep at the wheel. Cramer agreed with famed investor Warren Buffett, who noted that directors of companies have gone largely unpunished in our current financial crisis and should be penalized for taking for unnecessary risks during their employment.

In the "Mad Mail" viewer feedback segment, Cramer told a viewer that he'd be a buyer of Seagate ( STX), which he recommended selling a few weeks ago on the advice of colleague Ken Shreve. Cramer said it's not too late to get into Seagate, and he thinks the stock is undervalued.

Lightning Round

Cramer was bullish on Insituform Technologies ( INSU), Ford Motor ( F), Cisco Systems ( CSCO) and Banco Santander ( STD).

He was bearish on Coca-Cola Enterprises ( CCE), Acme Packet ( APKT), Toyota Motor ( TM) and National Bank of Greece ( NBG).

-- 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, 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."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, 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, 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 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, 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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