Cramer's 'Mad Money' Recap: Return of the Bulls (Final)

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NEW YORK ( TheStreet) -- Now that the big, bad health care event is finally behind us, Jim Cramer told the viewers of his "Mad Money" TV show Monday that it's time to get back to earnings, and the seemingly unstoppable mini-bull markets that have been developing.

Cramer noted that after a brief selloff, Wall Street was able to trump Washington, as investors could finally put the uncertainty of health care behind them. He said that while he still expects a sizable selloff before new taxes begin in 2011, for now, it's back to the races.

Cramer said it's once again safe to stick with the many bull markets that have been developing over the past few months, such as the mobile Internet tsunami. He said that Apple ( AAPL), a stock which Cramer owns for his charitable trust, Action Alerts PLUS , was higher today, along with component makers like Broadcom ( BRCM), Marvel Technologies ( MRVL) and Triquint ( TQNT).

The bull market in aerospace is also continuing, said Cramer, which makes Boeing ( BA) a buy, along with its component makers like Honeywell ( HON), another Action Alerts Plus name.

Cramer also likes the move toward a faster Internet, with stocks like Cisco ( CSCO), also in Cramer's portfolio, and its rivals like Juniper Networks ( JNPR) and Ciena ( CIEN).

In autos, Cramer still liked Ford ( F), along with Johnson Controls ( JCI), another Action Alerts Plus member, and Lear ( LEA).

Finally, Cramer gave the nod to generic drug makers like Abbott Labs ( ABT), his final Action Alerts Plus stock, as well as retailers like Costco ( COST) and TJX Stores ( TJX).

Hidden Shoe Market

Cramer identified yet another hidden bull market that no one's talking about, the bull market in shoes. He said shoes have been flying off the shelves over the last few months, but Wall Street analysts have failed to take notice.

Cramer noted that most analysts cover areas too narrow to see larger trends, and that's exactly what's happening with shoes, as none of the analysts are holistically putting all of the pieces together to see the larger trend. To help illustrate his point, Cramer built a shoebox pyramid out of the boxes from the many players taking part in the rally.

First, Cramer said that department stores are benefiting from the shoe trend, with retailers like Macy's ( M), Saks ( SKS) and Nordstrom ( JWN) all noting strong show sales on their most recent conference calls.

Then there's the show retailers, companies like DSW ( DSW) and Foot Locker ( FL), which both reported not stellar quarters, but did provide positive guidance. There was also Finish Line ( FINL), which not only beat its numbers, but boosted its dividend.

Finally, Cramer said the shoe makers are also on fire, with Deckers ( DECK), makers of the popular Ugg brand, leading the pack, up 53 points since Cramer first took notice last October.

Also doing well are Sketchers ( SKX), who's sales were up 30% year over year, Steve Madden ( SHOO), which provided upside guidance, and Wolverine World Wide ( WWW), which is flirting with a 52-week high.

Cramer said all of these names, including footwear giant Nike ( NKE), are all trending higher, making them attractive stops to buy before Wall Street takes notice.

True Sales Growth

Continuing with his footwear theme, Cramer explored the earnings of Nike ( NKE) even further, giving that company a buy.

Cramer said Nike is a fabulous long-term story, as the company just dominates the global athletic footwear market. He said Nike derives only 43% of its sales from North America, making it a true global player, and its stock is only up 55% from its lows, far less than its rivals.

Nike last came in with earnings of $1.01 a share, beating estimates by 12 cents a share on sales that increased 6.6%. Cramer said this quarter marked a transition from earnings beats coming from cost reductions and layoffs, to one that came from true sales growth. He said that recent research reports have shown the stock of Nike does best during times of true accelerated earnings growth.

Cramer said the other key factor driving nike is inventory. The company ended its most recent quarter with inventory down 12% from year ago levels. "The world just doesn't have enough Nike's," exclaimed Cramer. He said while the company trades at 16 times its earnings, higher than that of Deckers or Sketchers, the stock is worth it given its best-of-breed status.

Well-Designed IPO

In the "Know Your IPO" segment, Cramer recommended MaxLinear, a semiconductor company set to come public this week under the ticker MXL.

Cramer said that unlike many recent private equity-backed IPOs, which do nothing but repay a company's debt, the MaxLinear IPO is a venture capital-backed deal, and funds from its IPO are largely going towards growing its business.

Cramer said MaxLinear also has a great business, as it designs chips but outsources the building of them that play right into the heart of the mobile Internet tsumani.

The company's patented technology is more reliable and uses less power than its competitors, and MaxLinear sells to all of the major electronics makers in Asia. MaxLinear is growing revenue at 62% a year, and has a pristine balance sheet to boot, said Cramer.

With shares of MaxLinear set to price between $11 and $13 a share, Cramer said that given a premium multiple for the company's 35% grow rate, he thinks shares are cheap up until $18.55 a share.

He advised investors who can get in on the MaxLinear IPO to do so, but told other investors not to buy the company's shares in the open market after the IPO has occurred.

Lightning Round

Cramer was bullish on Kohl's ( KSS), Electronic Arts ( ERTS) and Bank of America ( BAC).

He was bearish on Take-Two Interactive ( TTWO), A-Power Energy ( APWR), Sanofi-Aventis ( SNE) and Diageo ( DEO).

-- 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, Honeywell, Ciscom Johnson Controls, Abbott Labs.

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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