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NEW YORK ( TheStreet) -- "You have to learn from the market's mistakes," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday. His said if a company's fundamentals are intact, sometimes going against the crowd is the perfect move. Cramer said handling losses is one of the most difficult things for new investors. To help explain what to do with losses, Cramer looked at four stocks from his charitable trust,
Win-Win StockWhether you're a bull, or a bear, when it comes to the housing market, Cramer said he's got a stock that wins either way. He recommended a little known stock of CoreLogic ( CLGX), which he says seems to defy traditional market logic. Cramer explained that CoreLogic provides information services to the real estate market, and profits from both new home mortgages and from bank foreclosures. If you're a bull, CoreLogic makes 50% of its revenues from providing information on appraisals and tax information. But if you're a bear, CoreLogic also makes 25% of its revenues providing similar services to banks for foreclosure proceedings. In addition to its transaction based services, CoreLogic also sells subscription-based data analysis services that offer higher margins. Cramer said the weak housing market has long been priced into CoreLogic's shares, so whichever way the market turns from here is a win for the company. Trading at a paltry six times 2011 earnings, Cramer said CoreLogic is a steal, especially since the company is under followed by Wall Street, leaving a lot of room for upgrades and new coverage initiations.
Buy, Sell Higher"Don't be afraid to buy high and sell higher," Cramer told viewers as he continued with his "Chart Week" series dedicated to exploring technical analysis. He highlighted Caterpillar ( CAT - Get Report), a stock recently featured on his "Made Here" series of the best American manufacturers. Cramer noted that Caterpillar has had an amazing run, from $25 a share at the lows of March 2009, to a 52-week high over $75 a share today. That's a gain of 240%. Cramer said while novice investors may feel they missed the move, or decide to ring the register, the charts say otherwise. He turned to colleague Ken Shreve for the details. According to Shreve, with the markets looking so strong, the chart of Caterpillar does as well. The stock broke out of its consolidating phase in April 2009, and again in April 2010. With all of those who owned the stock pre-2009 now back to even, Shreve said it's clear that investors are still buying the stock aggressively. Cramer agreed, noting that only 381 mutual funds own Caterpillar, as opposed to over 1,000 for other companies. Cramer said he'd be an aggressive buyer of Caterpillar on any weakness. With a 20% long term growth rate and a 2.3% dividend yield, Cramer said now is a great time to buy some Caterpillar. Investors shouldn't fear the stock just because it has had a big move higher, he said.