Cramer's 'Mad Money' Recap: A Rally Against All Odds (Final)

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NEW YORK ( TheStreet) -- "A rally is a rally," Jim Cramer told the viewers of his "Mad Money" TV show Monday, "even if the wrong stocks are leading it."

He said that today's action proved that Friday's sell-off was not a time to panic, but a terrific buying opportunity.

Cramer said it became clear today that the government's case against Goldman Sachs ( GS), a stock which he owns for his charitable trust, Action Alerts PLUS , may have been overblown by the media, allowing the markets to rally. But, he said the stocks that led last week's rally before Friday, did not lead today.

Cramer explained that today's rally was propelled by the recession stocks, companies that investors flock to when they're concerned with a slowdown, not a recovery. He said that's why stocks like Johnson & Johnson ( JNJ), Wal-Mart ( WMT) and Procter & Gamble ( PG) did so well today.

But Cramer said he's a buyer, not a seller, of this market, regardless of who's leading the charge. He said when companies like Citigroup ( C) report a monster good quarter, it's hard to ignore the facts that the economy is indeed getting better. He reiterated his buy on Citigroup, saying that the stock should now be able to clear $5 a share.

Cramer said perhaps the only thing that can stifle this market is what he called the "limbo stick" problem, in which it might be difficult for companies this week to top last week's great earnings. But while that may stymie some stocks, Cramer said he expects the market overall to resume its upward trajectory.

A Safe Syringe

In the "Executive Decision" segment, Cramer spoke with Alan Shortall, CEO of Unilife ( UNIS), maker of clinical safety syringes. Cramer panned the stock on April 9, but welcomed Shortall to the show to prove him wrong.

Shortall said there are over 3 million needle injuries around the world every year, and his company's patented safety syringe has validated technology to reduce those injuries. He demonstrated how Unilife's syringe contains a retractable needle, thereby eliminating the possibility of injuries.

Shortall said that there are over 2.5 billion pre-filled syringed produced every year, and Unilife is on track ramp up production to 800 to 900 million units per year in just the next five to six years. He said Unilife's gross margins are also better than transitional syringes given that its partners absorb most of the marketing costs.

When asked about the company's volatile share price when it came public, Shortall explained that due to a glitch in the IPO, some of the company's Australian shares did not transfer correctly to the NASDAQ, causing a shortage, and a spike in the share price.

After hearing Shortall's case, and seeing the Unilife's products first hand, Cramer said he'd blessed the stock as a speculation, given that it still has a long way to go towards becoming a large medical device company, and its product offerings, while patented, are still narrow in scope.

Buying Opportunity

Not all gaming stocks are created equal, Cramer told viewers. That's why when MGM Mirage ( MGM) pre-announced bad news last week, it created a buying opportunity for rival Wynn Resorts ( WYNN).

Cramer explained that MGM's problems just don't translate to Wynn, as MGM derives 80% of it's revenue from the ailing Las Vegas, while Wynn only derives 37% of it's revenues from Vegas. Then there's MGM's embattled balance sheet, with over $13 billion in debt and only $2 billion in cash.

When it comes to gaming stocks, Cramer said China's Macau region is all that matters. But even here, MGM is faltering, with its 76-acre City Center property posting an $84 million loss.

In contrast, Wynn is set to open its second Macau casino this week, and already commands 16% market share in the region. Its balance sheet is stellar, said Cramer, with only $3.6 billion in debt, and $2 billion in cash. Then there's Wynn's management, which Cramer called hands down, the best in the business.

Since Cramer last recommended Wynn on July 9, 2009, its shares are up a whopping 108%. Cramer said it's not done yet.

Branding Magic

In a special interview, Cramer welcomed author and fashion designer Daymond John to the show to discuss the importance of branding for business in America.

John explained that in his latest book, "The Brand Within," he details how most CEOs truly don't understand branding, mainly because they have too many other things to worry about. He said successful companies and celebrities can often be summed up in three words, like Nike's ( NKE) "Just Do It" or Gov. Arnold Schwarzenegger's famous "I'll Be Back," catch phrase.

John said that in his mind, companies like Intel ( INTC) and Research In Motion ( RIMM) are doing a terrible job managing their brands, while Apple ( AAPL) sells hundreds of thousands of its products before the public even see them.

Turning to celebrities, John said that Tiger Woods' brand is all about playing the best game of golf in the world, and as long as he returns to that brand, his image will transcend recent indiscretions.

Lightning Round

Cramer was bullish on AT&T ( T), Forest Laboratories ( FRX), American Tower ( AMT), Bank of America ( BAC), Standard Pacific ( SPF), Chipotle Mexican Grill ( CMG) and Windstream ( WIN).

He was bearish on M/I Homes ( MHO), Intuitive Surgical ( ISRG) and Frontier Communications ( FTR).

Closing Comment

Cramer praised Citigroup ( C), and it's CEO Vikram Pandit, for delivering a stellar quarter that not only provided genuine revenue growth, but also a stronger balance sheet. "Citigroup is doing everything right."

-- 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 Goldman Sachs.

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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