Cramer's 'Mad Money' Recap: Recipe for a Rally (Final)

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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 ( CRM) and EMC ( EMC) , a stock which Cramer owns for his charitable trust, Action Alerts PLUS, higher on the day.

Cramer said the tech stocks also received a boost from ( DSCM) getting a bid from Walgreens ( WAG) and an upgrade on ( AMZN).

Outside of tech, Cramer said we might have seen a bottom in Costco ( COST), Chipotle Mexican Grill ( CMG) and Panera Bread ( PNRA), as all three of these names were higher on the day.

Infrastructure Bottleneck

In 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 Block

In 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

Helping Japan

In a second "Executive Decision" interview, Cramer spoke with Rob Friel, chairman, president and CEO of PerkinElmer ( PKI), a stock that's seen a 16% gain since Cramer got behind the company on Sept. 23.

Friel said that PerkinElmer is working closely with the Japanese government to provide both food and water safety testing packages to help the country recover from their disasters. He said while much attention is being paid to radiation contamination, tsunamis also create chemical and biological contamination, all of which PerkinElmer equipment detects.

Elsewhere in the world, Friel said that China is doing a much better job of testing and protecting their food and water, but there still is more that needs to be done. He said that in light of Japan's crisis, there is increased dialogue around the world about the need for better environmental monitoring.

When asked about PerkinElmer's two recent acquisitions, Friel explained that testing technology has gotten very advanced and can now detect particles in the one per billion range. He said the challenge now is to manage, sort, interpret and share the mountain of testing data that is being created, and that's what the two acquisitions will help his company do.

Cramer continued his recommendation of PerkinElmer.

Lightning Round

Cramer was bullish on ( BIDU), Sina Corp ( SINA), CB Richard Ellis ( CBG), Accuride ( ACW), CNH Global ( CNH)and Potash ( POT).

He was bearish on Seattle Genetics ( SGEN).

Closing Comments

In his "No Huddle Offense" segment, Cramer said investors looking to profit from rising oil prices should forget about Chevron ( CVX) and ConocoPhillips ( COP), and instead look towards North Dakota.

Cramer said the Bakken shale in North Dakota produced 113 million barrels of oil last year, 67 million more barrels than it did just three years ago.

With these major oil fields just now coming on line, and the infrastructure to deliver their goods in the works, the time is right for companies like EOG Resources ( EOG), Whiting Petroleum ( WLL) and Continental Resources ( CLR).

Cramer said this group of oil stocks will see more growth than tech stocks in the coming years.

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

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At the time of publication, Cramer was long EMC.

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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