Off the Charts

"Not every momentum stock with a shrinking multiple should be abandoned," Cramer told viewers in the "Off The Charts" segment, where he went head to head with colleague Ken Shreve over the charts of two high- flying tech stocks.

According to Shreve, the stock of IT consulting powerhouse Infosys ( INFY) shows that company experiencing multiple contraction, as investors are willing to pay less for the company's slowing growth.

After the company announced such a slowing in January, shares of Infosys, which traded at 31 times earnings, fell to levels in line with a multiple 28 times its earnings. Shreve said the heavy volume shows that institutional investors are moving money out of Infosys.

That money could be flowing into rival, and Action Alerts PLUS stock Accenture ( ACN) however, as Shreve noted that this company's stock is showing classic signs of a multiple expansion.

After hitting lows in November, trading at just 15 times earnings, shares of Accenture now trade trade at 18 times earnings, also on heavy volume. According to Shreve, Accenture is headed still higher.

Cramer agreed with Shreve's analysis, saying that he too believes the market is moving money out of the slowing Infosys and into Accenture, which is currently the better company with better growth prospects.

Stealth Electric Car Trade

There is no pure play way to invest in electric car batteries, Cramer told viewers, but he did find one that comes close. He said that the filtration company Polypore ( PPO), a stock that's up 71% since Cramer recommended it in August, 2010, may be the best stealth way to play the proliferation of electric vehicles.

Cramer explained that in addition to Polypore's boring healthcare and industrial filtration businesses, the company manufactures separators for the batteries used in electric cars. And with just three key players accounting for 85% of the battery separator market, Polypore has a lot of room to grow.

That's probably why Polypore is expected to increase its capacity by 10 times over the next few years, and why electric battery separators could become as much as one-third the company's revenue. Cramer said if Polypore takes a cue from other conglomerates that have been splitting up to unlock value, Polypore could rise 20% on a breakup announcement.

Cramer said he arrived at his estimate by multiplying Polypore's $175 million in battery sales by a multiple of 10, a conservative number, then adding back the company's other businesses.

When it comes to the other players in the battery market, Cramer said Ener1 ( HEV) and A123 Systems ( AONE) are far too speculative with no earnings, and Aerovironment ( AVAV) has electric car exposure accounting for just 4% of the company's revenue. Polypore, he said, is the only way to play.

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