Cramer's 'Mad Money' Recap: Don't Let Worries Distract You From the Bull Market (Final)

Search Jim Cramer's Mad Money trading recommendations using ourexclusive Mad Money Stock Screener and watch Jim Cramer's Mad Money Post Game videoexclusively on TheStreet.com.


NEW YORK ( TheStreet) -- "It's time to stop worrying and love the bull," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday.

He said that ever since the market bottom in March in 2009, worrying has been just plain wrong. "The time to worry was last year," he said, "but now it's time to buy."

Cramer said the bears still seem to have an endless stream of things they're worried about, whether its Apple's ( AAPL) iPad sales, Treasury auctions, Federal Reserve statements, or a pending collapse in commercial real estate. Cramer said all of these worries just don't matter.

Cramer said what does matter is that the markets have only had four down days in the last month. What does matter is that insurance stocks like Lincoln National ( LNC), Hartford Financial ( HIG), Principal Financial ( PFG) and MetLife ( MET) are showing remarkable strength.

Cramer said it's also remarkable that LED maker Cree ( CREE) was able to rally seven points yesterday on the strength of consumer TVs. And that regional banks, like Regions Financial ( RF), Fifth Third ( FITB) and Huntington Bancshares ( HBAN) are also on the move.

Cramer said that real estate trusts that deal in commercial real estate are also strong, as evidence by Federal Realty Trust ( FRT) and Vornado ( VNO). He said these stocks have been mutilated by fear and went down too far, but now there's just no stopping them.

Likewise with health care, and minerals, and the industrials, said Cramer. All of these sectors were riddled with fear, but now just can't be kept down. He told viewers that they're allowed to be afraid but they just shouldn't act on it.

Homebuilder Play

Continuing his series on the economic recovery in California, Cramer went out on a limb and recommended, of all things, a home builder. He said that with housing prices stabilizing, the home builders are back to work and are quietly returning to profitability.

Cramer said he looked for home builders with the biggest exposure to California and came across KB Homes ( KBH), with 38% of its homes in the state, and Lennar ( LNR) with 25%, but he said the speculative Standard Pacific ( SPF) took the cake with over 56% of its homes residing in California.

Cramer said that Standard Pacific is decidedly the most speculative of the three, with the company getting hit hard in not only California, but also Florida and Arizona. But, he said, the company has now turned itself around, pushing through price increases on its homes and restoring its gross margins to 20%.

Cramer said Standard Pacific is all about growth, with the company buying $117 million in land, mostly in California, at rock bottom prices. Of the seven analysts covering the company, Cramer said that only two rate it a buy, leaving lots of room for upgrades.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Dan Fitzpatrick over the chart of Triumph Group ( TGI), an aircraft component maker that acquired the privately held Vought Aircraft on March 23 for $1.44 billion.

According to Fitzpatrick, the weekly chart of Triumph shows that the stock broke through its upper Bollinger band on the news of the merger, only to pull back, which is worrisome.

He said the daily chart also confirms that the stock broke through its prior resistance on the news, only to sharply reverse course. Fitzpatrick said he'd be a buyer of Triumph only if it retreated to its 50-day moving average around $59 a share.

Cramer said Fitzpatrick is wrong. Given the strength of Triumph's main customer, Boeing ( BA), and the strength of this acquisition, the company may not ever see $59 a share again, he said.

Cramer said that he'd be a buyer up to $69 a share, and gave the company a price target of $90.

Cramer said investors shouldn't fight the aerospace cycle, which is not set to peak until 2014. He said that Triumph's acquisition will immediately add $1 a share in earnings for the company, with even more further out. He noted that even at current levels, the Triumph trades at just 13 times its 2011 earnings, which is far too cheap for the new, combined company.

Natural Food Play

In the "Executive Decision" segment, Cramer sat down with Irwin Simon, chairman, president and CEO of Hain Celestial Group ( HAIN), a stock Cramer last recommended on Sept. 18. Since that recommendation, Hain shares have been languishing amidst what analysts characterized as a lackluster quarterly results.

Simon said that the analysts are free to write what they will, but from his perspective, earnings were up 35% in the last quarter, with free cash up by $60 million. He said that healthy eating is not a trend or a fad that's going away any time soon.

Simon said that during the worst part of the recession, Hain did see some consumers trading down to lesser expensive brands, but those consumers are now returning to the company's superior products and all natural ingredients.

Simon highlighted the company's success with its Earth's Best baby food line, which turned from a $14 million brand in 1999 to a $150 million brand today. He said that Hain is not spread too thinly amongt its brands, but is evolving into an all-natural food powerhouse. Simon said that only Hain is creating food for today's consumer.

Cramer agreed with Simon's outlook, adding Hain still tells a convincing story.

Lightning Round

Cramer was bullish on Research In Motion ( RIMM), Apple ( AAPL), EMC ( EMC), Ford Motor ( F), Carrizo Oil & Gas ( CRZO), Juniper Networks ( JNPR), CIENA ( CIEN), AT&T ( T) and Verizon ( VZ).

-- Written by Scott Rutt in Washington D.C.

To watch replays of Cramer's video segments, visit the Mad Moneypage on CNBC .

Want more Cramer? Check out Jim's rules and commandments forinvesting from his latest book by clicking here.

For more of Cramer's insights during the Lightning Round, clickhere .

At the time of publication, Cramer was long Apple.

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.

More from Jim Cramer

Snap, Gilead Sciences, Cronos Group: 'Mad Money' Lightning Round

Snap, Gilead Sciences, Cronos Group: 'Mad Money' Lightning Round

The Trouble With Trump's Tariffs: Cramer's 'Mad Money' Recap (Friday 6/22/18)

The Trouble With Trump's Tariffs: Cramer's 'Mad Money' Recap (Friday 6/22/18)

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Jim Cramer: Some Industrials Stocks Are Becoming Great Values

Jim Cramer: Some Industrials Stocks Are Becoming Great Values

Jim Cramer Reacts to Toni Sacconaghi's Latest Tesla Note

Jim Cramer Reacts to Toni Sacconaghi's Latest Tesla Note