Cramer's 'Mad Money' Recap: The Dogs of the Dow (Final)

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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.

Next was Exxon-Mobil ( XOM), which is down 2% and which Cramer called problematic. By contrast, he feels investors need not worry about Chevron ( CVX), a stock which Cramer owns for his charitable trust, Action Alerts PLUS because he feels it is headed towards $80 a share.

Cramer's list continued with IBM ( IBM) and Coca-Cola ( KO), down 4.1% and 4.9% respectively. He said IBM will likely report a fabulous quarter that is still over a month away. Meanwhile he said Coke cannot be relied on until its bottling deals are complete.

Further down the list was Pfizer ( PFE), down 5.3%. Cramer said to forget this stock. On the other hand, he said Microsoft ( MSFT) can't be kept down much longer.

Then there were the telcos, AT&T ( T) and Verizon ( VZ), each down about 10% on the year, but two stocks Cramer still believes in.

Finally, there was Alcoa ( AA), the worst performer on the year, down 15.2%. Cramer said he likes the cash flow at Alcoa, but he's not a fan.

A Winning Formula

In 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 Coming

In 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, Action Alerts PLUS .

Cramer said JP Morgan is the best run and most well-capitalized financial stock out there. He said the company is taking share and is doing everything right when it comes to rebuilding to its former self.

Mad Mail

Cramer 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 Round

Cramer 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.

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 Chevron, JPMorgan Chase, United Parcel Service, Qualcomm.

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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