'Mad Money' Recap: Apple Riding High With the iPad (Final)

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NEW YORK ( TheStreet) -- "The train is leaving the station and you can't wait any longer," Jim Cramer told the viewers of his "Mad Money" TV show Thursday.

He said that the time to buy Apple ( AAPL), a stock which he owns for his charitable trust, Action Alerts PLUS , is now.

With Apple's iPad tablet set to debut at the end of this month, Cramer said the momentum in Apple's stock will begin now. The company plans to begin advertising for the new device next week, and Apple's retail employees will also get their first hands on look at the product as well.

Cramer said if this quarter's retail earnings have told us anything, it's that the consumers are spending and should be eager to buy the new device. He said that retailers from Target ( TGT) to Coach ( COH) have all seen strong earnings, and Apple should be no exception.

Furthermore, Cramer said developers have clamoring to make business applications for the iPad as well. He said enterprise, traditionally a stumbling block for Apple, may have been finally cracked, as doctors, lawyers and even bankers and brokers are scrambling to consider the possibilities for the iPad. "That's huge," Cramer told viewers.

With Apple over $210 a share, and just $4 off its 52-week high, Cramer said it may seem like a risky call to recommend Apple so high. "It's not," he said.

Apple currently has $43 a share in cash on its balance sheet. Subtracting that number, Cramer said Apple is trading at just 13 times its expected 2011 earnings, the same multiple as Dell ( DELL) and Hewlett-Packard ( HPQ), two companies which don't have the iPad, or the iPhone or the iPod.

"Don't let the $210 price tag deter you," Cramer told viewers, adding the time to take the bite out of Apple is clearly now.

Respectable Year

In the "Executive Decision" segment, Cramer spoke with Sandy Cutler, chairman and CEO of Eaton ( ETN), which Cramer last recommended on July 20. Since then, shares of Eaton have rallied 46%, and are just one point off their 52-week highs.

Cutler said Eaton had a very respectable year, despite terrible end markets. He said the company has established positive momentum and the best news for the company is still ahead of them.

Culter said that unlike most companies, Eaton did not cut its research and development spending during the recession, and the company will now have solutions ready for the mega trend of energy-saving electrical products for its customers. Eaton, he said, will also benefit from its lower cost structure and increased penetration in emerging markets.

When asked about the company's visibility and ability to predict future sales, Cutler said the markets have changed dramatically. He said Eaton has gone from only being able to predict a few weeks of future sales to predicting trends in 2012 and beyond.

Cramer said candidly that investors should not sell Eaton. "It's going higher," he concluded.

Sell Block

Cramer said it's time to sell Transocean ( RIG), and swap into Weatherford ( WFT), another Action Alerts Plus name.

Transocean recently reported a miserable quarter, missing earnings by a whopping 35 cents a share. The company's failure to control costs has Cramer puzzled, as the oil services sector is on fire with record demand and consolidation. "Don't take your queues from weaker players," Cramer told viewers, adding they should stick with the winners.

Cramer said Weatherford is the way to play the boom in oil services. The company is the fourth largest oil services company in the world and the king of directional drilling, the method used in the oil shale fields as well as in other difficult-to- extract areas.

Cramer said Weatherford is tapped into all of the major themes happening around the world, with only 31% of its sales coming from North America, 27% from the Middle East and 24% from Latin America.

Management expects the company to grow at three times the industry average, as Weatherford's technology helps companies all over the world replace aging assets with new, higher yielding wells, he said.

Big Pin Action

Investors looking to make some money on the pin action of both Altera ( ALTR) and Marvell Technology's ( MRVL) earnings results need to consider rival Xilinx ( XLNX), Cramer told viewers.

Xilinx is up a solid 35% on his Mar 17 recommendation of Xilinx, and up 23% since it was added to his mobile Internet index on Aug. 11. The stock is trading right at its 52-week high, but Cramer said Xilinx has a lot of room to run.

Xilinx is clearly benefiting from the smart phone revolution, where phones once thought as luxuries and toys have now become necessities. The company expects to grow between 8% and 12% for the next few years and pays a 2.4% dividend to boot.

With Xilinx management stating that six of its 10 major business segments haven't even hit their 2008 levels yet, Cramer said Xilinx is one of the most inexpensive stocks he follows.

Lightning Round

Cramer was bullish on TiVo ( TIVO), Celera ( CRA), Devon Energy ( DVN) and Warner Chilcott ( WCRX).

He was bearish on Sequenom ( SQNM), Force Protection ( FRPT) and United States Natural Gas ( UNG).

-- 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 AAPL, Weatherford.

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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