Cramer's 'Mad Money' Recap: Game-Changing Stocks (Final)

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NEW YORK ( TheStreet) --"If the last decade has taught us anything, it's that this is a stock picker's market," Jim Cramer told the viewers of his "Mad Money" TV show Wednesday, as he perused the list of the hottest performing stocks over the past decade.

Cramer said while the major averages may have stalled over the past 10 years, all was not lost on individual stocks, which is why he continues to advocate actively managing ones' portfolio rather than passively shoveling money into mutual or index funds.

What do the top performers from years' past have in common? They're all game-changing companies, he said.

Cramer said there's a reason why Apple ( AAPL), a stock which he owns for his charitable trust, Action Alerts PLUS, was up 4,206% over the past 10 years. He said the company has personally revolutionized mobile communications and how we consume digital media.

Priceline.com ( PCLN), with its name your own price model, revolutionized how airlines and hotels compete and price their offerings. That's why Priceline tops the list with a 4,962% gain.

Other game changers included Carmax ( KMX), up 1,663%, Intuitive Surgical ( ISRG), up 1,407%, and Urban Outfitters ( URBN), up 3,599%.

Cramer said the themes may change but the fact remains that owning the best-of-breed companies in game-changing markets is always the smartest place to invest.

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In the "Executive Decision" segment, Cramer spoke with Glenn Tullman, CEO of Allscripts Healthcare ( MDRX), a stock that's up 132% since Cramer got behind the company in January of 2009, but also one that's down 8% year to date.

Tullman said Allscripts is once again firing on all cylinders now that its break-up with partner Misys is completed, and its merger with Eclipsys has been completed.

He said the company is still taking advantage of the federal stimulus, which is paying doctors and hospitals to use Allscripts' software. Tullman also noted that stimulus money has already been earmarked for payment and is not part of "Obamacare" which is coming under fire.

Tullman also said that Allscripts is benefitting from its size. With over 180,000 physicians, 1500 hospitals and 10,000 other facilities already using the company's products, mergers in the healthcare industry only make the company more entrenched and more valuable.

Other bright spots for Allscripts include new devices, like Apple's iPad, which has "capture the imagination of physicians," said Tullman. He said the iPad, and other devices, all work with Allscripts' software and help physicians improve patient care.

Cramer said Allscripts' stock has been held down by the Misys divestiture, but is now ready to run higher. He said now is the time to buy. Allscripts trades at just 12 times earnings with an 18% growth rate.

Leading Job Indicators

"The job situation is about to get a whole lot better in this country," Cramer told viewers in a bold prediction. He said while the official Labor Department statistics are still painting a dismal job outlook, the indicators that matter tell another story.

Cramer said the problem with unemployment numbers are that they're lagging indicators. He said investors can't make money off old news. That's why Cramer looks forward, at leading job indicators, from sources investors might not expect.

Cramer said he first looks at staffing companies like Trueblue ( TBI) and Manpower ( MAN). These companies make money when one of their temporary placements gets hired full time. That's why the 35% growth at Manpower caught Cramer's attention.

Then there are professional staffing firms such as Robert Half Int'l ( RHI) and Kforce ( KFRC). These companies have also offered up a positive outlook for 2011.

Cramer said he also looks toward the payroll processing companies ADP ( ADP) and Paychex ( PAYX) for data. These companies have seen a 1.7% jump in the number of employees per customer.

Finally, Cramer said he takes cues from the office supply companies like Staples ( SPLS) and Office Max ( OMX), two companies that primarily sell to small businesses. Both of these companies have reported better than expected results.

Cramer said if investors piece all of these positive data points together, along with rising earnings from job Websites like Monster Worldwide ( MWW) and it's clear the job outlook in the U.S. is getting a lot better than the weekly unemployment data would suggest.

Am I Diversified?

Cramer spoke with callers to see if their portfolios have what it takes. The first caller's portfolio included Exelon ( EXC), PPG ( PPG), Pepsico ( PEP), Google ( GOOG) and Verizon ( VZ).

Cramer said this portfolio was perfect and very well played.

The second caller's top holdings included Citigroup ( C), Caterpillar ( CAT), Johnson & Johnson ( JNJ), Weatherford ( WFT) and Nvidia ( NVDA).

Cramer said "yes" to this perfectly diversified portfolio.

The third caller had Vodafone ( VOD), Annaly Capital ( NLY), CenturyTel ( CTL), Isis Pharmaceuticals ( ISIS) and Denbury Resources ( DNR) as their top five stocks.

Cramer said Vodaphone and CenturyTel are both telcos and that's not allowed. He said this portfolio needed a technology stock.

Lightning Round

Cramer was bullish on Alcoa ( AA), Motricity ( MOTR), Ferrellgas Partners ( FGP), Inergy LP ( NRGY)and NovaGold Resources ( NG).

He was bearish on Take-Two Interactive ( TTWO).

Closing Comments

In his "No Huddle Offense" segment, Cramer said the takeaway from President Obama's business summit this week may not be what was said, but who was on the guest list.

He said unlike past presidential meetings, this summit was filled with critics of the President, and not just corporate "yes" men. Cramer said this is a good sign from what appears to be a changed presidency, one that is giving big business a fair shake.

Cramer said Obama may not yet be pro-business, but at least he's no longer anti-business.

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

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For more of Cramer's insights during the Lightning Round, clickhere .

At the time of publication, Cramer was long Apple.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com 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 TheStreet.com, 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 TheStreet.com 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, TheStreet.com 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 TheStreet.com, 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 TheStreet.com. 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 TheStreet.com, 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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