Cramer's 'Mad Money' Recap: No Rhyme or Reason (Final)

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NEW YORK ( TheStreet) -- "There isn't always a clear cut explanation for the market's moves," Jim Cramer told the viewers of his "Mad Money"TV show Wednesday as he analyzed the day's trading action.

But he said investors can use the pullback to their advantage and do some buying.

Cramer said he scoured the markets all day looking for an explanation for today's malaise. His conclusion? There was no good explanation. Stocks ran up to far, too fast, but the underlying bullish trends remain intact, he said.

Cramer said the banking sector has been reporting good earnings by and large, yet their stocks sank today anyway. In the tech sector, IBM ( IBM) had good things to say, but that too didn't help the group as a whole. Other sectors, like the oils, coals and even the autos were also on the downside today, despite their long term bullish theses still being valid.

So what's an investor to do? Cramer said the disappointing results from F5 Networks ( FFIV) after the bell will likely cause more pain tomorrow in the tech group, and he'd use that weakness to do some buying.

He said investors should stick with companies that have long term bullish trends, like Apple ( AAPL) or JPMorgan Chase ( JPM), two stocks which he owns for his charitable trust, Action Alerts PLUS.

"We're taught there always has to be a reason stocks go down," Cramer concluded, but sometimes that simply isn't the case.

Gold Currency

In the "Executive Decision" segment, Cramer spoke with Aaron Regent, president and CEO of Barrick Gold ( ABX), another one of Cramer's favorite gold mining stocks.

Regent said that in today's economic climate, gold should be viewed as a currency and a unit of monetary measure, not just as a hedge against economic panic. He said that serious commentators around the world are talking more and more about gold in the realm of world monetary affairs. As a class, however, only 3% of global financial assets are currently invested in gold.

When asked about how difficult it is to find gold, Regent said that it's getting harder and harder to find the precious metal. He said that even when it is found, it can sometimes take between seven and 10 years to put a mine into operation. Regent noted that the gold industry is fairly small with limited resources, so increasing production is a tougher and tougher task.

Turning towards Barrick's performance, Regent said that his company's low cost of production is a reflection of Barrick's high quality deposits. He said Barrick can simply get gold out of the ground cheaper than its competitors.

Cramer continued to recommend gold as an asset class and said that Barrick is a world-class operator.

Hidden Value

"Find something rare, and you'll find a bull," Cramer told viewers as he continued his "Eye on Energy" series looking for undervalued energy stocks. Tonight he looked into the the major integrated oil companies and his favorite was ConocoPhillips ( COP).

Cramer said that Conoco is a turnaround story, in which management is focused on creating value after years of losing its way and diversifying into too many projects. Like Marathon Oil ( MRO), which recently jumped 11% on the news it was splitting into two companies, Cramer said Conoco also has a ton of value hidden within its various components.

Cramer explained that Conoco has already begun selling some non-core assets, reducing its exposure to the low-margin refining business from 27% to just 15% of deployed capital. The company is also divesting its share of the Russian-based Lukoil and putting that capital to work elsewhere.

Conoco has lots of potential, said Cramer. The company has exposure to the Canadian oil sands as well as several American oil shale fields. Conoco is also focused on stock buybacks and raising its dividend to help bolster its share price. According to recent research, Conoco's parts are worth $79 a share, 17% higher than where the stock trades today.

Shifting gears, Cramer said a company like ExxonMobil ( XOM), which is trading at its 52 week high, is not what investors should want. Exxon, he said, offers little growth, and the company's acquisition of XTO ( XTO) may have been ill-timed.

Another winner however, is Chevron ( CVX), an integrated oil company that is growing like crazy and has lots of exposure to oil and only a little towards the slumping natural gas market.

Cold Weather Catalyst

In the "Executive Decision" segment, Cramer spoke with Steve Wambold, president and CEO of Ferrellgas Partners ( FGP), a propane stock that's up 23% since Cramer first recommended it in December, 2009, and one that sports a 7.3% dividend yield.

Wambold said that after a late start to the winter heating season, the cold weather has finally arrived and Ferrellgas loves it when it gets cold.

When asked about whether the price of propane greatly affects Ferrellgas' performance, Wambold explained that the company has many price protections through hedging and mainly makes money on the quantity of gas it delivers and not as much on the price of the commodity. Wambold called Ferrellgas a stable, conservative platform.

When asked about the company's juicy dividend, Wambold responded by saying that Ferrellgas maintained its discipline throughout the recession and is strategically focused on raising its dividend going forward.

Turning to the company's balance sheet, Wambold said that his company has taken on some large projects, such as its 2004 acquisition of the Blue Rhino brand, but those acquisitions are slowing building and are starting to pay off handsomely.

Cramer said that Ferrellgas remains a good story, and he's still a supporter of the company and its dividend.

Lightning Round

Cramer was bullish on Peabody Energy ( BTU), Aqua America ( WTR)and Motricity ( MOTR).

He was bearish on Triquint Semiconductor ( TQNT), RF Micro Devices ( RFMD)and Alpha Natural Resources ( ANR).

No Huddle Offense

Cramer commented on the news Tuesday that privately held Cargill is selling its 65% stake in fertilizer giant Mosaic ( MOS). "Don't be fooled," said Cramer, saying it is a rare opportunity to buy Mosaic on weakness.

Cramer said while in the short term Mosaic will be weak as the market absorbs Cargill's 157 million shares, in the long run the move improves liquidity for Mosaic and paves the way for the company to make acquisitions or to be acquired itself.

--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, JPMorgan.

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."

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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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