Cramer's 'Mad Money' Recap: The Remarkable Bull Run (Final)

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NEW YORK ( TheStreet) -- Jim Cramer broke out the balloons and party hats on his "Mad Money" TV Show Monday to celebrate the one-year anniversary of what he called "the most explosive rally in stock market history."

He took a moment to look back at the past year and marvel at just how far the markets have come.

Cramer recalled that a year ago, things looked bad, really bad. Unemployment had just hit 8%, and the buzz on Wall Street was that of nationalizing our banking system as stocks continued to slide lower by the day.

But that changed on March 4, 2009 when President Obama signaled that the banks were not going to be nationalized, said Cramer.

After Obama's vote of confidence in the markets, the Treasury's so-called "stress tests" began to work, and the banks were able to stabilize and even raise capital.

That began a 61% rally in the Dow Jones Industrial Average, and rallies in the Nasdaq, S&P 500 and Russell 2000 as well. Cramer noted that during the past year there was not a single major bank failure, but there were 213 mergers and acquisitions that yielded an average a 31% premium for shareholders.

Cramer said the market's rally has indeed been remarkable, but so too has the fact that most home-gamers have been sitting on the sidelines. In 2010 alone, Cramer said investors have pulled $15.3 billion out of U.S. equities, and that's just wrong. Things are far better now than they were a year ago, he said, and investors need to get back in the game.

Many companies are now hitting 52-week highs and announcing upside surprises in their earnings. Cramer said it's not too late to invest. "How can you still hate stocks?" he asked.

A Pivotal Moment

On the heels of Xcel Energy's ( XEL) announcement that it will convert one-third of the company's coal fired power plants in Colorado to clean-burning natural gas, Cramer spoke with Charles Davidson, chairman and CEO of Noble Energy ( NBL), the company that will likely be supplying Xcel with the gas it needs.

Davidson said Xcel's deal in Colorado is the beginning of a nationwide trend to move our power generation away from dirty coal plants and into natural gas. He said the word is finally starting to get out that natural gas is here, it's abundant, it's clean and it's priced right.

Davidson said there is still much work to be done, but he sees an encouraging future for natural gas. He said the incentive is there to become energy independent and environmentally friendly, while creating jobs for Americans.
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Davidson noted Noble's partnership's in Israel, where that country recently discovered huge reserves of natural gas, and is now rapidly moving toward energy independence, as it moves its power generation and autos off of foreign oil and into homegrown natural gas. Davidson said the biggest challenge for Israel, like the U.S., will be creating a refueling infrastructure for the new fuel.

Cramer called Noble Energy an inexpensive stock that has yet to move on the news of Xcel's transition towards more natural gas.

Hot Shoes

Footwear is hot, Cramer told viewers. That's why he reiterated his buy on Decker's ( DECK) last week, and why he said investors need to go pick up some Sketchers USA ( SKX) as well.

Sketchers last reported earnings a 58 cents a share. Not a monster beat, said Cramer, but still a solid 6-cent-a-share upside surprise on strong sales, and not simply cost cutting efforts.

The company saw same-store sales up a whopping 17.4% in its forth quarter and it's also aggressively managing its inventory. Sketches saw a 14.2% drop in overall inventory in 2009, which has led to more Sketchers being sold at full price.

Cramer also liked Sketchers' expansion efforts. The company is set to open 25 to 30 new stores in 2010, and expand into Brazil, India and China. Sketchers also has exciting new products, including its Shape-Up and Tone-Up lines of shoes that are designed to improve posture and facilitate weight loss.

Shares of Sketchers are up 474% since its 2009 lows, but still trades at just 11 times its 2011 earnings. Cramer said this may be one case where investors need to buy high, and sell even higher. He said that backing out the company's $6 a share in cash, Sketchers actually trades at just nine times earnings, despite its 15% long-term growth rate.

Eureka Moment

In his "Eureka Moment" segment, Cramer said he just realized that the federal government's portfolio of companies is surprisingly similar to the holdings of famed investor Warren Buffet.

He said that while Buffet owns a Chinese auto maker, the government owns stakes in both GM and Chrysler. While Buffet owns insurance giant Geico, the government owns both AIG ( AIG) and a stake in Met Life ( MET).

Cramer said the similarities don't stop there. Buffet owns many housing related stocks, while the government owns Freddie Mac ( FRE), Fannie Mae ( FNM) and a stake in Citigroup ( C), which is a large mortgage lender.

Cramer said the only difference between Buffet and the government is that Buffet is building his portfolio, while the government is divesting theirs. He said the government's holdings are proving to be worth a lot more than once believed, and are not selling at the fire sale prices many pundits once thought.

Lightning Round

Cramer was bullish on Cisco Systems ( CSCO), Ariba ( ARBA), F5 Networks ( FFIV), Visa ( V), Gafisa ( GFA), Fuel Systems Solutions ( FSYS), Citigroup ( C) and Apple ( AAPL).

He was bearish on Hershey Foods ( HSY), Allied Irish Banks ( AIB) and Motorola ( MOT).

Closing Comments

Cramer said that Nordic American Tanker ( NAT) should see a big dividend boost soon, and he thinks the company is a buy.

-- 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, Visa, Cisco.

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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