Cramer's 'Mad Money' Recap: Jumping Off the Panic Bandwagon (Final)

Search Jim Cramer's Mad Money trading recommendations using our exclusive Mad Money Stock Screener and watch Jim Cramer's Mad Money Post Game video exclusively on

NEW YORK ( TheStreet) -- "It's time to unlearn the lessons of 2008," Jim Cramer told the viewers of his "Mad Money" TV show Wednesday. He said it's time to think more positively and react more rationally to market downturns.

"When did panic become a trading strategy?" asked Cramer, as he pleaded with viewers to forget the past and turn over a new leaf. He said the lessons learned in the 2008 recession, mainly "shoot first, then shoot again," simply no longer apply to this market.

Cramer said that seven weeks ago, the market was predicting that all of Europe would cease to exist, and fall into financial oblivion. Yet just seven weeks later, companies like FedEx ( FDX), VMWare ( VMW) and Eaton ( ETN), along with dozens of others have told us that things in Europe aren't so bad after all.

Cramer said the panic strategy worked for awhile in 2008, and investors needed to duck and run at every sign of weakness or risk being wiped out completely. But now, he said, the recession is over, and pullbacks are a time to buy, not a time to jump out the window.

Cramer admitted there are still lots of problems here in America, and the government's anti-business stance in favor of the little guy isn't helping the economy at large. Buy, he noted that while the U.S. economy is sluggish and will be for some time, there are a bunch of other countries around the globe that are doing much better. And it's those countries that are helping our companies report great earnings.

"The panic strategy is hurting us," Cramer told viewers, adding it's time to be more positive.

Hopeful Signs

Cramer spoke with Rep. John Larson, D., Conn., about the new, scaled-down energy bill that's working its way through Congress, one that is bringing American- made natural gas to the forefront.

Cramer explained that with the larger energy bill, which included cap and trade, now dead in the Senate, the more modest bill is now nearing a vote in the Senate, and is likely to pass. This new bill currently includes $4 billion of new incentives for converting to natural gas.

Larson called the energy bill great news for America, and said he expects any remaining issues between the Senate and House versions of the bill to be reconciled quickly. He said getting off foreign oil should be the No. 1 priority for the country and this bill is a giant leap forward.

Larson explained that natural gas is abundant, accessible, available and most importantly, ours. He said for every 18-wheeler that's converted to natural gas, the equivalent of 382 cars are taken off the road, and that's significant.

Larson said with over a 200-year supply of gas in America, natural gas has to be the cornerstone of our energy policy, along with all other forms of energy including nuclear power.

Cramer agreed, and commended Larson for his efforts to bring natural gas to the forefront as a bridge fuel towards the future.

Getting Closer to Energy Independence

In the "Executive Decision" segment, Cramer spoke with Andrew Littlefair, president and CEO of Clean Energy Fuels ( CLNE), which is set to benefit from the new energy bill, as it's estimated 100,000 new natural gas trucks will be on the road in three years.

Littlefair said this is the first time Congress has taken action towards energy independence and the new bill will get the ball rolling for the entire natural gas industry. He said the eight million heavy duty trucks in America use 35 billion gallons of fuel every year, and while 250 million lighter vehicles consume 100 billion gallons a year, targeting the trucks makes a huge impact.

Littlefair said the new bill will give fleet operators the incentive they need to convert their trucks to natural gas, where they'll save $1 a gallon on fuel. Once production for gas trucks increases, he said, the incentives will no longer be needed.

When asked about the need for natural gas fueling stations, Littlefair said that 85% of all trucking is regional, less than 350 miles a day. Based on that model, he said, fueling stations can be built in clumps around truck stops, with most stations taking only six months to build. "The infrastructure will come," he said.

In addition to the energy independence and environmental issues, Littlefair also said the new energy bill is a huge creator of jobs, with over 500,000 new jobs expected once it's passed.

Cramer reiterated his buy on Clean Energy Fuels, along with Westport Innovations ( WPRT), Cummins ( CMI) and Fuel Systems Solutions ( FSYS), all of which play a part in the natural gas revolution.

Ethanol Catalyst

There's a catalyst coming in the ethanol market, Cramer told viewers, and the time to get on board is now. He said that no one is paying attention to California, which recently boosted its maximum ethanol percentage in gasoline from 5.7% to 10%. Nor are they paying attention to the Environmental Protection Agency, which is set to raise the national limit on ethanol in gasoline from 10% to 12%.

Cramer said the EPA's expected ruling could create demand for up to 6.5 billion additional gallons a year of ethanol, something confirmed by railroad CSX ( CSX), which reported ethanol shipments up 17% on the quarter, and pipeline company Kinder Morgan Energy Partners ( KMP), which reported a 38% increase in ethanol deliveries.

Cramer said it's natural for investors to want a pure play in ethanol to play this move, but don't, he cautioned. He said these speculative stocks are far too risky, and investors will get hurt. Cramer said the way to play ethanol is with John Deere ( DE).

Cramer said the premise is simple: To have more ethanol, you need more corn, and for that, you need more John Deere. He said that Deere may seem expensive at 13.3 times earnings, but with a 10% long term growth rate and sales expected to rise 11% to 13% in 2010, the stock is a bargain.

Lightning Round

Cramer was bullish on Boeing ( BA), Skechers USA ( SKX), Devon Energy ( DVN), Chesapeake Energy ( CHK) and ON Semiconductor ( ONNN).

He was bearish on Range Resources ( RRC) and McAfee ( MFE).

-- 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 not long any stock mentioned.

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.

If you liked this article you might like

Dow, S&P 500 and Nasdaq Rebound as Oracle and Facebook Tumble

Dow, S&P 500 and Nasdaq Rebound as Oracle and Facebook Tumble

Why Stocks Fell (And Why All Is Not Lost): Market Recon

Why Stocks Fell (And Why All Is Not Lost): Market Recon

What To Do With Your Retirement Savings When the Stock Market Crashes

What To Do With Your Retirement Savings When the Stock Market Crashes

Go Long Boeing's Stock and Get Handsomely Paid

Go Long Boeing's Stock and Get Handsomely Paid

Facebook's Cambridge Analytica Debacle Will Have Wall Street Talking Monday

Facebook's Cambridge Analytica Debacle Will Have Wall Street Talking Monday