Cramer's 'Mad Money' Recap: Debunking the Double-Dip Talk (Final)

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NEW YORK ( TheStreet) -- "The people who say this economy can't turn around aren't listening to the conference calls," an excited Jim Cramer told the viewers of his "Mad Money" TV show Tuesday, as he accused the "eggheads" or academic bears, of being profusely short-sighted.

"How can we have a rally like today if we're on the eve of destruction," Cramer asked. He said that most academics sit in their ivory towers and only view the world through a top down approach, meaning they miss out on all of the good news happening at the individual company level.

Cramer said while the academics are still blaming Washington, or the banks, or Europe for all that ails our economy, quietly, the fundamentals of individual companies are finally starting to matter more than the endless barrage of pessimism.

Case in point, CSX ( CSX), which today reported great numbers, with growth in all areas except coal. Cramer said CSX is a barometer for what's moving across our country, and the outlook is good. CSX is not only seeing strong growth, it's also beginning to hire more employees, he said.

Then there's semiconductor equipment maker Novellus ( NVLS), which said on its conference call that demand for DRAM is no longer in decline as consumers snap up more and more electronic gadgets.

Finally, Cramer noted aluminum giant Alcoa ( AA), which noted on its call that airlines seem to be turning the corner, with demand finally starting to pick up. The company expects 12% to 17% growth this year.

Cramer said the eggheads and perma-bears aren't listening to these upbeat conference calls, but individual investors need to pay attention.

Berkshire Faceoff

In the "Off The Charts" segment, Cramer went head to head with colleague Tim Collins over the chart of Berkshire Hathaway ( BRK.B), a company that can sometimes be difficult to value given its many diverse moving parts.

According to Collins, any technical metric that relies on volume is now worthless when it comes to Berkshire, as the company was recently added to both the Russell 1000 and S&P500 indices.

Instead, Collins said the stock had resisted its 13-day moving average until June when it broke out to the upside. Since then, Berkshire's stock has been displaying a bullish ascending trianlge pattern.

Turning to the weekly chart, Collins noted a stair-step pattern where the stock trades sideways before breakout out to the upside. He said based on the technicals of this pattern, he'd wait for a pullback to $75 before pulling the trigger.

But Cramer disagreed, saying he'd be a buyer, based on the fundamentals. Cramer said Berkshire is the cheapest it's ever been compared to the assets it holds.

In addition, Cramer said Warren Buffet has a solid management team in place at all of his businesses.

Finally, Cramer said he likes Berkshire because the company has the right portfolio of companies for a recovery, including exposure to railroads, housing, insurance and banking through its stake in Wells Fargo ( WFC).

Comeback Trail

Continuing with his "Biggest Loser" series of broken stocks that represent great value, Cramer highlighted both Nvidia ( NVDA), down 40% on the year, and Jabil Circuit ( JBL), down 15% on the year.

Cramer said both of these companies remind him of ADC Telecom ( ADCT), a company that was part of his mobile Internet tsunami index on Aug. 11, and is now up 81% after receiving a takeover bid.

Cramer said things seemed very bullish on June 16 when he interviewed Nvidia's CEO. The company has $3 a share in cash and trades at a paltry eight times its 2011 earnings estimates. Nvidia has a host of new products on the market, and is getting more efficient at production, thereby increasing its margins.

Cramer also gave the nod to Jabil Circuit, a company which delivered a 7-cent a share earnings beat when it last reported. "Jabil is a strong sales story," said Cramer, with the company expecting revenues from its consumer business to increase by 25% next quarter.

Shares of Jabil have been trading lower on slowdown fears in Europe, said Cramer, but with management confirming that its seeing no ill effects from Europe, those fears are overblown, especially since the company now trades at just seven times earnings.

In both cases, Cramer said these are broken stocks, not broken companies, and they should rebound in the second half of the year.

Software Licensing Gem

In the "Know Your IPO" segment, Cramer analyzed the coming IPO of software licensing company Qlik Technologies, which will trade under the ticker "QLIK". Cramer said Qlik reminds him of ( CRM), another high flying software company.

Cramer noted that in 2009, Qlik grew revenues by 33%, expanding its customer base from 2000 customers in 2005, to over 14,000 today. The company has $121 million in cash, with customers in 100 countries.

Cramer said Qlik's IPO has good underwriters with no investors set to cash out on the deal. The company plans to raise $101 million by offering 1.2 million shares between $8.50 and $9.50 a share. Cramer said that values the company at what others in the sector have been taken over at, making it compelling.

Cramer said unlike Tesla Motors ( TSLA), which he advised selling on the IPO, Qlik is a winner, and he's pay up to $9.50 a share for the stock.

Lightning Round

Cramer was bullish on Whirlpool ( WHR), Nucor ( NUE), ( CRM), Exelon ( EXC) and American Tower ( AMT).

He was bearish on American Capital Agency ( AGNC) and Ebix ( EBIX).

Closing Comments

Cramer said that Intel ( INTC), a stock which he owns for his charitable trust, Action Alerts PLUS , delivered the best quarter he's ever seen, and he remains bullish on the stock.

-- 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 Intel.

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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