Cramer's 'Mad Money' Recap: New Rules for a New Market (Final)

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NEW YORK ( TheStreet) -- "We've got a new game, and we need some new rules," an elated Jim Cramer told the viewers of his "Mad Money" TV show Monday.

He said the bullish train is leaving the station, and the time to get on board is now.

Cramer said with so much good news on Wall Street, it's time for some new rules.

Rule No. 1: Don't fear the Democrats. Cramer said President Obama hit the road again today with a pro-business agenda and rhetoric that Wall Street loves. There may be compromise on middle class tax cuts, and compromises on other pro-business proposals, he said.

Rule No. 2: There's less banking uncertainty. Cramer said newly announced financial regulations in Europe won't kick in for years, and many of the European banks have already raised a tons of capital, both of which are good news for banks worldwide.

Rule No. 3 - Europe Is open For business. Cramer said the latest estimates for growth in Europe are twice what was feared. This is great news for companies like Boeing ( BA) and Honeywell ( HON).

Rule No. 4: China's ready to leap forward. Cramer said the so-called "soft landing" in China is happening, and China is once again heading for double digit GDP growth.

Growth in China means great things for Las Vegas Sands ( LVS) and Wynn Resorts ( WYNN), which bet big on Chinese gambling, and for the big engineering companies like Bucyrus ( BUCY) and Joy Global ( JOYG).

"Look out above," said Cramer, the bulls are coming.

Lowball Offer

In the "Executive Decision" segment, Cramer spoke with Peter McCausland, chairman and CEO of Airgas ( ARG), which is under siege by a hostile takeover bid from rival Air Products & Chemicals ( APD).

According to Cramer, who has been against the takeover, Air Products' $7 billion takeover offer for Airgas undervalues the company by a staggering $1.2 billion. Cramer said he feels Airgas' stock is being held back by the lowball offer, and could see $80 a share if left alone.

McCausland agreed with Cramer's assessment, saying that the company's board of directors deserves to be re-elected and he hopes shareholders vote with the company. McCausland said that Air Products jumped on his company after its only revenue decline in 22 years, and is ignoring the tremendous value that its being created by their accelerating revenue growth.

McCausland also noted that Airgas is generating strong margins, all while still being 10% below its peak revenue. The company, he said, is on track to outperform all of their 2012 goals. He said Airgas is not against selling the company, but it is against stealing it.

Cramer continued his support for McCausland, and his efforts to unlock the true value of Airgas.

Made in the USA

"Yes, we still make things in America," declared Cramer, as he kicked off a week long series of stock recommendations entitled "Made Here." Cramer said he's highlighting the companies that are best of breed in their areas, ones that dominate their markets worldwide. "We make some of the best stuff on earth," declared Cramer, and he has the stocks to prove it.

First on the list, heave equipment maker Caterpillar ( CAT), a stock at a 52-week high. He said this global giant only derives 35% of its revenues from America, but is clearly the global leader in equipment.

Caterpillar last reported a monster 24-cent-a-share earnings beat with a 30% increase in revenues. The company also boosted full-year guidance but only trades between seven and nine times 2012 earnings despite a 20% long-term growth rate and a 2.4% dividend yield.

Next on the list, agriculture equipment maker John Deere ( DE), the largest distributor of agricultural equipment on the planet. Cramer said while Deere still gets 65% of its sales from the U.S., there's a global bull market in agriculture that will surely change that number going forward. "Deere is the best run company in the agriculture universe... by far," he said.

Shares of Deere are also at a 52-week high, after the company reported a 22 cent a share earnings beat on an 18% increase in sales.

Mad Mail

Cramer told a viewer that he'd be a buyer of Whirlpool ( WHR) given that it trades at just 10 times earnings.

Cramer told a second viewer that Intel ( INTC), a stock which he owns for his charitable trust, Action Alerts PLUS, has been disappointing, but he would not be a seller down this low.

When asked the age old question, Coca-Cola ( KO) or Pepsico ( PEP), Cramer said that while he loves both, his charitable trust owns Coca-Cola as it has more upside from acquiring its bottlers.

When asked to choose between Energy Transfer Partners ( ETP) and Kinder Morgan Energy Partners ( KMP), Cramer said here to, he loves both, but would give the edge to Kinder Morgan.

Finally, when asked whether investing in Wal-Mart ( WMT) through the company's employee purchase program was a good idea, Cramer said absolutely.

Lightning Round

Cramer was bullish on FirstEnergy ( FE), Stryker ( SYK), Under Armour ( UA), Lululemon Athletica ( LULU), Dicks Sporting Goods ( DKS), Limited Brands ( LTD), People's Bank ( PBCT) and Chesapeake Energy ( CHK).

He was bearish on Arena Pharmaceuticals ( ARNA) and Clean Energy Fuels ( CLNE).

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

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At the time of publication, Cramer was long Intel, Coca-Cola.

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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