Cramer's 'Mad Money' Recap: Getting Tomorrow's Headlines Today (Final)

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NEW YORK ( TheStreet) -- "Be afraid of the housing starts number due out tomorrow," Jim Cramer cautioned the viewers of his "Mad Money" TV show Monday.

He said the reaction to the housing starts number that are scheduled for release Tuesday and the existing home sales report on Wednesday will most certainly take the markets lower.

Cramer said he doesn't need a crystal ball to predict the headlines from tomorrow's and Wednesday's trading. He said the markets will fall as the economists are "shocked" by the poor performance in housing. Cramer wondered why these estimates are so high in the first place.

"All of these estimates are unrealistic," said Cramer, given the unemployment rate and the expiration of the federal tax credit on new homes. He said the economists, and their macro views on the economy, have been predicting housing wrong demand month after month, and tomorrow will be no different.

Cramer, on the other hand, said he takes his cues from the homebuilders themselves, who are far more cautious, and accurate, in their forecasts.

So while the world is "shocked" by the housing numbers Tuesday and again on Wednesday, Cramer said investors should be using the weakness as a buying opportunity and should be adjusting their portfolios ahead of time. He said there is growing pent-up demand for new homes, and that demand will be unleashed soon.

"Ignore the sirens of negativity," Cramer told viewers, "housing will get better." And in the meantime, use the market weakness and be ready for the wave higher.

Two IPO Plays

In the "Know Your IPO" segment, Cramer compared two coming IPOs, that of Green Dot, which will trade under the ticker "GDOT," and Ameresco, which will trade as "AMRC." Cramer said both IPOs can make you money, but only if you play them correctly.

Green Dot is the country's largest prepaid debit card provider, a huge business that didn't exist five years ago, but one that now has more than $119 billion loaded onto prepaid debit cards. Cramer said this business flourished during the recession as more and more consumers chose prepaid debit cards over expensive credit card alternatives.

Green Dot is expected to offer 3.8 million shares, priced between $32 and $35 a share. Cramer said he expects the deal to pop, but would be a buyer on the IPO only, and only up to $35 a share. Longer term, Cramer's worried that Green Dot will be held hostage by its largest customer, Walmart ( WMT), which is why he sees the stock longer term hovering near $31 a share.

Ameresco, on the other hand, is a great long-term investment, said Cramer. The company helps plan and build energy efficient projects for governments and large institutions. Cramer said it's estimated that the U.S. will need $500 billion in such projects through 2020 to help it save more than $1.2 trillion in energy costs.

Ameresco is expected to price between $14 and $16 a share, but Cramer said he'd pay up to $18 a share for the stock given its great long-term outlook. With 75% of the company's revenue coming from the government, Cramer said Ameresco may not be as sexy as Green Dot's debit cards, but it has solid customers.

Euro Bounce

"With the euro rebounding, we need to start thinking about stocks that can benefit from currency translation," Cramer told viewers. And that means companies like Philip Morris International ( PM) and Colgate-Palmolive ( CL) are in a good position.

Cramer said the name of the game is overseas profits, and that's perfect for companies like Philip Morris, which derives 100% of its profits from overseas, and sports a solid 4.6% dividend yield. Philip Morris already cut their 2010 earnings guidance, but with the euro now rebounding, Cramer said those estimates are now too low.

Philip Morris has been raising prices, despite higher taxes being levied on its products. Additionally, the company has been $1.5 billion in cost savings since its split with Altria ( MO), which he also owns for his Action Alerts PLUS portfolio, and its shares trade at just 10.5 times earnings despite a 10% to 12% long-term growth rate.

Colgate-Palmolive derives 76% of its sales from overseas, and 2.6% dividend yield. The company offers premium brands like Colgate, Irish Spring, and Ajax among dozens of others. Cramer said Colgate is an emerging markets play, with lots of room to grow in markets like Brazil, Russia, India and China. He said the company also has a clean balance sheet, and of course, its dividend. \\

Mad Mail

Cramer told a viewer that he's still a fan of pipeline master limited partnerships like Kinder Morgan Energy Partners ( KMP) and MarkWest Energy Partners ( MWE), and would buy them on weakness when their dividend yields rise.

Cramer told a second viewer that he's not a fan of GT Solar ( SOLR), or any solar stocks, all of which require oil prices to be higher or government subsidies to thrive.

Lightning Round

Cramer was bullish on Fluor ( FLR), Shaw Group ( SHAW), Gilead Sciences ( GILD), Power-One ( PWER) and ConAgra Foods ( CAG).

He was bearish on Jacobs Engineering ( JEC) and Kraft Foods ( KFT).

-- 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 Altria.

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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