NEW YORK ( TheStreet) -- "An absence of bad news, coupled with good news from beat up sectors...that's a recipe for a rally," Jim Cramer told the viewers of his "Mad Money" TV show Thursday, as he opined on the day's trading action. Cramer said investors will never hear an apology from the media for making stories out to be bigger than they actually are, but it finally looks like the endless parade of worries over Japan, Libya and Portugal are no longer rattling Wall Street. Couple this trend with some good news out of a few hated sectors, and he said that's what powered today's rally. In the tech sector, Cramer said Micron Technologies ( MU), makers of memory chips, surprised Wall Street with strong earnings, while positive news from Red Hat ( RHT) sent cloud computing stocks Salesforce.com ( CRM) and EMC ( EMC) , a stock which Cramer owns for his charitable trust,
Infrastructure BottleneckIn the "Executive Decision" segment, Cramer spoke with Patrick Daniel, president and CEO of pipeline company Enbridge ( ENB), a growth stock which Cramer characterized as critical to our nation's and our continent's energy independence. Enbridge currently transports two million barrels of liquids a day, and accounts for 11% of America's total oil imports. Daniel said that North America has the capability to become energy independent, with Canada holding the world's second largest oil reserves and America being the world's largest oil market. He said the two countries represent a logical marriage that makes perfect sense. Yet in many areas of the country, like the Bakken shale, there simply isn't enough infrastructure to get the oil from where its found, to where it needs to go. Daniel said Enbridge added 50,000 barrels a day of capacity on the U.S. side of the Bakken last year, capacity that was swallowed up on day one. On the Canadian side, an additional 130,000 barrels a day of capacity is also nearing capacity. Daniel also said that in West Texas, oil prices are depressed due to bottlenecks that can't move enough oil fast enough. Daniel also commented on his company's two oil spills last summer. He said the company took full responsibility for these spills, cleaned up the affected areas and is now moving on. He said regulations will likely be strengthened as a result of these incidents given that Enbridge was following all current safety and inspection procedures. Finally, when asked about employment, Daniel said that Enbridge puts thousands of people to work when they build a pipeline, and the pipeline business is a big driver for job creation. Cramer continued his recommendation of Enbridge.
Sell BlockIn the Thursday "Sell Block" segment, Cramer added contract manufacturer Sanmina-SCI ( SANM) to solitary confinement, as he explained to viewers that "not all companies are created equal." Cramer said that unlike rival Jabil Circuit ( JBL), which reported better-than- expected results and raised guidance, Sanmina painted a dire outlook for the industry and itself. The result? Shares of Sanmina fell 22% on the news, taking Jabil shares down 4% in sympathy. But Cramer noted that Jabil is a much better company than Sanmina, which is why its shares rallied 11% when it reported its stellar results. So why is Jabil so much better? Cramer said in this game, it's all about specializing on economies of scale and manufacturing more efficiently than your competitors, something Jabil has mastered. Unlike Sanmina, which is levered to communications equipment, Jabil gets nearly one-third of its revenues red hot consumer devices. That's probably why shares have risen 45% since Cramer first recommended it in July 2010. Cramer said while Sanmina is now cheaper than Jabil, trading at five times earnings versus Jabil's eight times earnings, Jabil is still the better stock