Cramer's 'Mad Money' Recap: Market Votes for Greed (Final)

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NEW YORK ( TheStreet) -- "This market favored greed today," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday.

He said the bears were betting on a Greek default, but now that the doom-and- gloom scenario is off the table, the markets ushered in two new sets of buyers, hungry for quick profits.

Cramer explained that the first group of buyers saw the decline in oil prices, and used those prices as a reason to buy any company that uses oil. Following that logic, users of other commodities like cotton and corn also rallied, as did consumer stocks, high-growth retailers and even the restaurant stocks. All the markets needed was a little good news and the buyers swarmed in.

Cramer said that's why stocks like Lululemon Athletica ( LULU) hit a 52-week high today, as Lulu not only benefits from lower commodity prices, but also has pricing power to raise prices on its goods at the same time.

Also in rally mode, accessory maker Fossil ( FOSL), Chipotle Mexican Grill ( CMG), VF Corp ( VFC), Polo-Ralph Lauren ( RL) and Phillips-Van Heusen ( PVH).

Cramer said the second group of buyers in today's market were honing in on the industrial stocks, figuring that without a European collapse, these stocks, some of which are down 15% to 20% from their highs, would once again fall into favor. And they did. Cramer said the shorts in these stocks left the field as the buyers swarmed in.

Emerging-Market Growth Plans

Continuing with his "Five-Year Plan" series of stocks with long-term growth plans, Cramer featured 3M ( MMM), a best-in-show company which rolled out it's five-year plan earlier this year.

Cramer said after growing only 4% last year, 3M's new plans are for 7% to 8% annual growth through 2015. The company also plans to increase margins to over 20% and increase new product sales. More impressive are 3M's emerging market plans, which includes growing its Chinese sales 15% to 20% annually, its Brazilian sales by 20% and nearly tripling sales in India. Cramer said there's lots of upside in this plan for 3M.

More importantly, Cramer said that 3M already has a great track record. He said the company's emerging market sales are already on fire,and the increased focus will only make it more so. 3M is a high-quality franchise, with industry-leading market share and pricing power to pass on rising costs to its customers, he said.

Cramer said 3M also boasts an excellent balance sheet, a 2.4% dividend yield that can easily be raised and the stock trades at only 13 times earnings despite the company's 12% long-term growth rate. What's not to love?

A Word of Caution

In the "Off The Charts" segment, Cramer went head to head with colleague John Roque over the direction of the markets.

According to Roque's analysis, a chart of the S&P 500 index looks healthy at first, with the average holding above its support level of 1,250. However Roque questions the strength of that floor, noting that it may not hold up under pressure.

Roque also looked at 10-day moving average charts of the market's new highs and lows. He discovered that after averaging 200 new highs back in May, the market is only producing 26 today. A chart of the lows shows that after averaging 20 new lows in May, there are 72 on average today.

Even the advance decline charts are turning down sharply for all of the major indices, said Roque, some falling even below the lows of the Japan panic in March.

Cramer agreed that Roque's analysis should temper investors' euphoria for the markets and cause them to remain cautious. He said the markets are not out of the woods yet, and he would book profits and most certainly not be greedy.

Pre-filled Syringes

In the "Executive Decision" segment, Cramer spoke with Alan Shortall, CEO of Unilife ( UNIS), a small, under-$5-a-share, micro-cap stock that currently has no earnings. Unilife is researching proprietary drug delivery systems, essentially pre-filled syringes for the treatment of many diseases. Shares of Unilife are down 24% though, since Cramer last spoke to Shortall on April 19, 2010.

Shortall said Unilife's progress is right on schedule, and the company expects to be seeing its initial sales next month in July. He said the company's pipeline is full of new products and partners to fund those new devices.

So what makes Unilife's products so special? Shortall explained that there are over 600,000 needle-related injuries in the U.S. every year, and Unilife's pre-filled syringes feature retractable needles that not only reduce the need for packaging, storage and transportation by 70%, but also increase safety.

Shortall called Unilife's products a "game changer," saying that the company's expertise and infrastructure have given it the advantage over rivals, yet the company's size is still small enough that it can be nimble to respond to the market place.

Cramer called Unilife a compelling story, but cautioned investors not to pay up for the company's shares as its marketcap is still very small.

Lightning Round

Cramer was bullish on Energizer Holdings ( ENR), MAKO Surgical ( MAKO), EMC ( EMC) and Deere & Company ( DE).

He was bearish on Monsanto ( MON), Bitauto Holdings ( BITA), Finisar ( FNSR), Cree ( CREE) and Marathon Oil ( MRO).

SEC Inaction

In his "No Huddle Offense" segment, Cramer sounded off against the Securities and Exchange Commission for its hand-off approach in the IPO market.

Cramer said the Internet stock train wreck is on its way, with IPOs like LinkedIn ( LNKD) leading the way. The SEC has the authority to regulate IPOs and prevent bubbled like LinkedIn from happening, and yet it chooses to do nothing, he said.

The SEC needs to encourage orderly markets, said Cramer, and that means not allowing deals offer such a small percentage of shares to come public and pop the stock. Everyone knows its happening, he argued, and only the SEC can stop it.

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

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At the time of publication, Cramer was not long any equities mentioned.

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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