Cramer's 'Mad Money' Recap: Unstoppable Bulls (Final)

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NEW YORK ( TheStreet) -- "Don't let the last decade of underperformance fool you," Jim Cramer told the views of his "Mad Money"TV show Monday. He said when the market rallies on stuff we already know, that's a very bullish sign.

Cramer said on a day when the market was poised for steep declines in the early morning hours, he was delighted to see individual stocks, many of the one's he's been recommending for weeks, rallying despite the seemingly bearish economic news out of Portugal. What was interesting, he noted, was why they were rallying.

It's been known for weeks now that eventually Verizon ( VZ) would be selling Apple's ( AAPL) iPhone. But despite the stock of Apple, a stock which Cramer owns for his charitable trust, Action Alerts PLUS, running up ahead of the news, it ran up even more now that the news has finally come.

Likewise with Ford ( F), which rallied on the introduction of more fuel efficient cars, something else widely known to investors.

The same goes for the Action Alerts PLUS stock of Bank of America ( BAC), which rallied on a downgrade of rival Wells Fargo ( WFC). "No news there," said Cramer, who featured Bank of America just last week.

The list goes on, said Cramer, to include even the high-flying Netflix ( NFLX), which rallied $8 on an interview with CEO Reed Hastings about the company's widely anticipated international expansion plans.

Cramer said this bullishness should not be doubted by investors, as rallying on already known news is the most bullish of bullish indicators. He said this move is for real, and investors need to use any weakness to put money to work.

Backbone of the Internet

In the "Executive Decision" segment, Cramer sat down with Gary Smith, president and CEO of Ciena ( CIEN), a stock that's up 305% since Cramer first recommended it on Decl 12, 2008. Cramer maintains a $30 price target on Ciena, which makes high capacity optical switching products for the backbone of the Internet.

Smith said the mobile Internet tsunami is still in it's early innings, driven by greater geographic diversity on the Internet and greater applications with more requirements. He said what's different now versus the first Internet boom in the late 1990s is that now the costs have fallen to where businesses are making real money online. Ciena is at the core of high capacity transport, said Smith.

When asked about Ciena's acquisition of assets from Nortel ( NT), Smith said that Nortel had great technology in high capacity networks and great people, which made the acquisition extremely valuable. He said Ciena now has global scale and reach and is a leader in every space in which they compete.

Turning to the latest trends, Smith said Ciena has world leading technology in the 100G, or 100 gigabit per second, optical space, and with cloud computing continuing to grow, the need for more bandwidth, like 100G, will only continue.

Cramer continued his recommendation of Ciena and maintained his $30 price target on the stock.

Next Takeover Targets

On the heels of Qualcomm's ( QCOM) recent acquisition of Atheros Communications ( ATHR), Cramer offered up seven speculative networking stocks that could be the next takeover target. He said each of these names is great on their own merits, as well as a potential acquisition target.

1. Acme Packet ( APKT) - This stock is up 84% since Cramer first got behind it on Aug. 9. Acme has a 60% market share and trades at 55 times earnings with a 32% growth rate.

2. Netgear ( NTGR) - This stock is up 32% since Cramer's Oct. 8 recommendation. The home networking equipment maker trades at 17 times earnings with a 17.5% growth rate.

3. Cirrus Logic ( CRUS) - A stock that's been on a roller coaster, but Cramer said it's trading at just 12 times earnings with 20% growth and a bad quarter just behind them. He said Cirrus is worth a look.

4. Motricity ( MOTR) - This stock has pulled back 10 points from its post-IPO high and Cramer said this web portal company is also cheap with a 25% long term growth rate.

5. Akamai ( AKAM) - This stock is up 81% since Cramer mentioned it on Jan. 20 of last year and trades at just 29 times earnings with a 17% growth rate.

6. Nvidia ( NVDA) - Cramer said he'd let this stock come in a bit before buying, but he still likes the company, which is up 89% and trades at 28 times earnings with a 14% growth rate.

7. ARM Holdings ( ARMH) - Cramer said the 200% gain in this stock since Oct. 16, 2009 may just be the beginning for this mobile chip designer that's in everything from smart phones to the iPad. ARM is expansive, trading at 50 times earnings with only a 20% growth rate, but Cramer said the stock is still far too small given the company's role in the mobile Internet .

Pure Natural Gas Play

On the heels of another takeover, this time in the utility space, Cramer said it's time to ring the register in at least half your position of National Fuel Gas ( NFG) now that Duke Energy ( DUK) has made a bid for Progress Energy ( PGN).

Why sell National Fuel Gas on the the takeover news? Cramer said it's because National Fuel Gas is not the kind of company that's likely to be taken over given the Duke deal.

What kind of company does look like one that might be taken over? Cramer said it's NiSource ( NI), and that's where he'd roll his profits from National Fuel Gas into.

Cramer said NiSource is a pure natural gas play that's also a utility. The company has 3.3 million gas customers in seven mid-Atlantic states, as well as a storage and pipeline business that spans from the Gulf of Mexico all the way to Lake Erie, connecting to the red hot Marcellus Shale fields along the way. NiSource also has an electric utility business with 450,000 customers and a 5.1% dividend yield to boot.

Cramer called NiSource a low-risk, simple business with consistent earnings, exactly the kind investors and potential acquirers, should be looking for.

Lightning Round

Cramer was bullish on KKR Financial Holdings ( KFN), Newfield Exploration ( NFX), Noble Energy ( NBL), Occidental Petroleum ( OXY), ( BIDU), AT&T ( T), PolyOne ( POL), DuPont ( DD), F5 Networks ( FFIV), Gannett ( GCI), MGM Mirage ( MGM), Wynn Resorts ( WYNN)and Las Vegas Sands ( LVS).

He was bearish on TransGlobe Energy ( TGA)and DangDang ( DANG).

Closing Comments

In his "No Huddle Offense" segment, Cramer said he's delighted that he government is cracking down on consultants who provide "soft" information to fund managers.

He said these managers aren't good enough and don't work hard enough to be worthy of investors' money, and he's thrilled that investors will be relying on mutual funds less and more on their own homework.

Cramer said individuals can beat the averages and the mutual funds if they simply have confidence, stay the course and have faith the the playing field has once again been leveled for all.

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

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At the time of publication, Cramer was long Apple.

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."

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