Cramer's 'Mad Money' Recap: Analysts Late to the Party (Final)

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NEW YORK ( TheStreet) -- After six straight weeks of market gains, Jim Cramer told viewers of his "Mad Money" TV show, that the latest push that sent the Dow above 11,000 came from analysts who were late to the party finally getting on board.

Cramer said there's a time honored tradition on Wall Street of financial analysts being late to game. He said that could clearly be seen today, as literally dozens of stocks were upgraded by analysts, most of them at their 52-week highs.

Consider Ciena ( CIEN), a stock which received an upgrade today that's already up some 88% from its lows and is trading at its 52-week high. Cramer said it's almost comical how the analyst, who had rated Ciena a sell, now suddenly thinks it's a buy, with a $25 price target.

Cramer said similar patterns could be seen with Under Armour ( UA) and Gap Stores ( GPS), both of which are at their 52-weeks highs, and both of which were also upgraded by analysts who completely missed the move higher.

Cramer said the next wave of upgrades will be the banks, aerospace, infrastructure stocks, timber companies and the broader technology group. All of these companies, said Cramer, have completed aggressive cost cutting, and will be up against easy comparisons from last year, making it easier for analysts to fix their mistakes.

"We've had 18 months of gains," said Cramer, but the markets aren't done yet.

Sunoco Next?

With convenience store chain Casey's General ( CASY) recently receiving a lucrative takeover bid, Cramer said that Sunoco ( SUN) may be the next company to be acquired.

Cramer said the convenience store business is all about scale. The bigger you are, the more money you can make. That's why Sunoco's 4,711 gas stations and convenience stores may be so attractive. Cramer said the Casey's deal valued each of their locations at $1.3 million a piece, which makes Sunoco a situation where the parts are worth far more than the whole.

Sunoco's market cap is only $3.6 billion, but the company consists of oil refining, which is 52% of sales, a pipeline component, 13% of sales, and metallurgical coal, 2% of sales, with the remaining 33% being their retail locations. Cramer said the breakup value of each of these components could be huge for the company.

Of the analysts who cover the company, only one gives it a buy rating, with 11 holds and three sells. Cramer said that Sunoco is definitely a buy before Wall Street realizes the true value of hidden gem.

Worth Every Penny

"A CEOs worth is determined by a whole lot more than his company's share price," Cramer told viewers, as he highlighted two men, whom he anointed the most underpaid CEOs in the world.

In a world where executive compensation is coming under constant fire, Cramer said that Alan Mulally of Ford ( F) and Howard Schultz of Starbucks ( SBUX ) are worth every penny for their amazing ability to build news companies out of the ashes of their former selves.

Cramer said that Mulally earned his $17.9 million salary in 2009 for taking Ford shares up 337%, all while the entire auto industry was left for dead. Mulally not only cleaned up Ford's balance sheet, he restructured $10 billion in debt and didn't take a dime from the government to do it.

Likewise with Schultz at Starbucks. Cramer said he earned his $15 million salary in 2009. Cramer said Starbucks shares have soared 144%, dramatically outperforming the markets. Schultz closed underperforming stores, introduced new store designs and returned the company to its roots of providing great hospitality. Starbucks' same store sales have increased from 1% to 4% as a result, said Cramer.

Cramer said that both took broken companies and make them great again. He said the large stock option packages should not be seen as taking advantage of shareholders, but rather as a sign that the CEOs have performed dramatically better than even the company's own compensation committee felt they would.

"These guys are worth every penny," said Cramer, "and more."

Mad Mail

Cramer told a viewer that Visa ( V), a stock which he owns for his charitable trust, Action Alerts PLUS , should be having a great quarter.

Cramer told a second viewer that he's not bullish on AerCap Holdings ( AER), and would stick with Boeing ( BA) for exposure to aerospace.

Cramer told a final viewer that while Akamai ( AKAM) seems overvalued based on its earnings, the company is seeing great growth and is a buy based on its position at the heart of the mobile Internet tsunami.

Lightning Round

Cramer was bullish on Triquint Semiconductor ( TQNT), AK Steel Holding ( AKS), United States Steel ( X), Walter Industries ( WLT), Akamai Technologies ( AKAM), Hawaiian Electric ( HE), Manitowoc ( MTW), Weatherford Int'l ( WFT) and Dendreon ( DNDN).

He was bearish on Devon Energy ( DVN), Inverness Medical ( IMA) and Nabors Industries ( NBR).

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

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

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For more of Cramer's insights during the Lightning Round, click here .
At the time of publication, Cramer was long Visa.

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."

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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.

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