Cramer's 'Mad Money' Recap: Hidden Bull Market (Final)

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NEW YORK ( TheStreet) -- "There was a hidden bull market in today's action," Jim Cramer told his "Mad Money" TV show viewers on Thursday.

He said while the averages might not show it, the industrial stocks are flying under the market's radar.

Consider mining equipment maker Joy Global ( JOYG), who delivered stunning earnings that sent shares up $4 a share.

Cramer said this one stock led all of the industrials higher, including names like Caterpillar ( CAT) and John Deere ( DE), two stocks which he owns for his charitable trust, Action Alerts PLUS and has discussed at length earlier this week.

Cramer said the world needs more electricity, and that means more coal. He said it also needs more copper. And both of those commodities need more of the equipment made by Joy Global. He said this is one company that's not affected by $4 gasoline or a slowdown in China. Joy Global is in it for the long term, said Cramer, and investors should be as well.

Cramer also noted that the consumer staples, companies like Abbott Labs ( ABT), Kraft ( KFT) and Kimberly-Clark ( KMB) were all lower today, as expected, as investors move money back into the industrials.

The long-term outlook also remains good for gold, said Cramer, whict is why he continues to push hard on the precious metal to make it part of every investor's portfolio. The bull market in social media also roars on, as Internet coupon king Groupon announced that it will be coming public soon.

"There's always a bull market somewhere," said Cramer. Investors just need to keep their eyes open.

Running at Capacity

In an exclusive "Executive Decision" segment, Cramer once again spoke with Michael Sutherlin, president and CEO of Joy Global ( JOYG), the mining equipment maker and Cramer favorite that delivered stellar earnings earlier today.

Sutherlin reiterated that the mining equipment business is a long-cycle business, and not one that is affected by short-term economic slowdowns. He said that global mining operations are running near capacity today, and companies are aggressively adding capacity to meet the needs to tomorrow.

Sutherlin said while Japan, for instance, will be adding a lot more coal capacity soon, it's the emerging markets which are preparing to add the capacity to burn an additional 750 million tons of coal a year as their economies continue to grow.

When asked about the environmental concerns surrounding coal, Sutherlin said that in today's environment, it simply isn't feasible to eliminate any fuel supply. He said the challenge is how to make coal cleaner, not how to eliminate it. Sutherlin also noted that with the high price of oil, many of the oil sands projects in Canada are once again ramping up, another growth driver for Joy Global.

Finally, when asked about Joy Global's expansion into some oil and gas projects, Sutherlin said he has 22 years experience in the oil and gas business, and the two industries are similar in many ways. He said both groups operate 24/7 operations in remote locations, for example, and Joy Global has a lot of experience adding value to those operations.

Cramer said Joy Global remains a great long-term play and should be a part of investors' portfolios.

Tanker Stock Warning

In the Thursday "Sell Block" segment, Cramer said it's time to steer clear of the oil tanker stocks. He said the recent Commodity Futures Trading Commission investigation into the 2008 manipulation of oil prices is the least of these stocks' worries.

Cramer said tanker stocks don't trade on the supply and demand for oil. Rather they trade on the supply and demand of tankers, and right now there are simply too many ships for the demand. He said the day rates for tankers are awful, and with so many tanker companies having weak balance sheets, many might not survive.

Plus, Cramer said many of the tanker companies have confusing ownership structures, making it impossible to know what you really own. Teekay Tankers ( TNK), for example, may seem attractive with its 11% yield, but shares are down 16% over the past year. Cramer said Teekay doesn't own any of its ships and instead leases them from a parent company.

Crude Carriers ( CRU) is another sell in Cramer's book. He said shares of this company have fallen 29% in a little over a year.

Frontline ( FRO), the company whose CEO is implicated in the CFTC investigation, is down 49% over the past year, but Cramer said Frontline could sink even lower.

Of the company's 77 ships, Frontline only owns nine of them, and of those, it operates zero, preferring instead to outsource operations to a subsidiary, he said. "So the company doesn't own any ships and it doesn't operate them, what does it do?"

Of the oil tanker stocks, Cramer said only Nordic American Tankers ( NAT) remains on his buy list. This best of breed company yields 5%, said Cramer, and that dividend is safe.

Video Conferencing Play

In a second "Executive Decision" segment, Cramer sat down with Andrew Miller, president and CEO of Polycom ( PLCM), a video conferencing stock that's up 119% over the past year and has doubled over the past five months.

Miller said that video conferencing has become one of the fastest growing segments of technology, providing customers a 57% return on investment and more importantly, offers businesses substantial productivity increases.

Miller also explained Polycom's recent deal with Hewlett-Packard ( HPQ), calling the deal a big win for customers. Under the terms, Polycom assumes all of HP's video conferencing assets and in return, the HP will be the primary resellers of Polycom technology.

Miller went on further to say that Polycom now has deals with HP, IBM ( IBM) and Microsoft ( MSFT) and offers a different range of products versus what rival Cisco ( CSCO) is offering. He said that Microsoft's recent purchase of Skype does not change the landscape, as Skype is for consumers, while Polycom offers secure enterprise solutions.

Cramer said Polycom has been a viewer favorite on "Mad Money" and he said the reasons are obvious.

Lightning Round

Cramer was bullish on Qualcomm ( QCOM), Goldcorp ( GG), International Business Machines ( IBM), Enbridge ( ENB) and Lululemon Athletica ( LULU).

He was bearish on Vale ( VALE).

In Praise of Apparel Stocks

In his "No Huddle Offense" segment, Cramer said the shorts have it all wrong when it comes to the apparel makers. Take Phillips-Van Heusen ( PVH). The shorts assumed rising cotton costs and lower demand would cripple earnings this quarter.

But in reality, sales abroad were terrific and even sales domestically were good, he said. Van Heusen is also not affected by cotton prices, as the company only licenses the Calvin Klein brand, it's primary growth driver.

Cramer said the shorts also attacked Polo-Ralph Lauren ( RL), but shares only stayed lower for a day before rebounding handsomely.

So why the hatred towards the apparel stocks? Cramer said in the past there were dozens of poorly run apparel companies, all only one bad quarter away from death's door. But today, he said these companies are well run and have great international growth to boot. "They deserve our praise and investment, not our scorn and avoidance," he concluded.

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

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At the time of publication, Cramer was long Caterpillar, John Deere.

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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