NEW YORK ( TheStreet) -- "The markets can breach their January highs but only if the laggards start pulling their own weight," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday. Cramer called out the 10 worst performers in the Dow Jones Industrial Average and gave his opinions on whether each should be thrown overboard, or kept until they improve. Cramer's list of lethargic stocks began with American Express ( AXP), which is down 2% on the year. He said AmEx is now in the sweet spot and is headed higher to $45 a share.
A Winning FormulaIn the "Executive Decision" segment, Cramer sat down with Steve Tanger, president and CEO of Tanger Factory Outlet Centers ( SKT), for his read on the state of commercial real estate amid speculation of pending collapse. Tanger responded to the speculation by saying that Tanger is a growth company and has never ended a year with less than 95% occupancy in its outlet centers. He said the outlets have gone markedly upscale, adding luxury brands like Saks ( SKS) and Gucci. When asked why high-end retailers are moving towards outlet distribution, Tanger said that theoutlets provide a completely different channel of distribution for retailers and is a better deal than offloading excess merchandise to a third party discount chain. Tanger said his outlets offer retailers the opportunity to sell directly to the consumer for 30% to 70% off retail prices, while still building their brand and image. Tanger also said that his company is focused near American resort areas, where the market is stable and doesn't follow the whims of currency and airfare. He characterized Tanger's balance sheet as "a fortress" that allows the company to attack and grow while others are retreating. Given the growth prospects for the company and its track record of raising its dividend every year since 1993, Cramer said Tanger is winner.
A Breakout ComingIn the "Off the Charts" segment, Cramer went head to head with colleague L.A. Little over the charts of the financial sector, which is up 141% over the last 12 months, but up only 6% over the last six months. They used the Financial Select Sector SPDR ( XLF) as their benchmark for the group. According to Little, we're in for a mega rally in the financials. He noted that back in October, the ETF showed an "island reversal" pattern, characterized by a sharp gap higher, followed by an immediate gap lower. Little said this trend is an extremely bearish signal for the hordes of money managers who rely on technical analysis. However Little also noted that the ETF has been building a floor for almost seven months and is close to eclipsing that island level. He feels that once that level is reached, a mega breakout will occur. Cramer said he agrees with Little's analysis and feels its only a matter of time before the financials break out, perhaps returning to their pre-Lehman Brothers levels. However Cramer said he's not a fan of the ETF. He said he prefers to own the best stock in the group, JPMorgan Chase ( JPM), a stock which he owns for his charitable trust,
Mad MailCramer told a viewer that he likes Dominion ( D) and Excelon ( EXC) as his two favorite utility companies. Cramer told a second viewer that the government will soon announce that it's selling its stake in Citigroup ( C) and when the stock gets hit, he'd be a buyer. Cramer told the final viewer that he's bullish on Ross Stores ( ROST) and TJX Companies ( TJX), as both discounts are performing well.
Lightning RoundCramer was bullish on Range Resources ( RRC), Autodesk ( ADSK), J Crew ( JCG), United Parcel Service ( UPS), Wendy's/Arby's Group ( WEN), Chipotle Mexican Grill ( CMG), Del Monte Foods ( DLM), American Superconductor ( AMSC), SPDR Gold Shares ( GLD) and Agnico-Eagle Mines ( AEM). He was bearish on Expeditors International ( EXPD), Qualcomm ( QCOM), Dole Food ( DOLE), Imax ( IMAX) and Silver Wheaton ( SLW). -- Written by Scott Rutt in Washington D.C. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.