'Mad Money' Recap: Buffett Comes to the Rescue (Final)

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NEW YORK ( TheStreet) -- "It was time to give some back," Jim Cramer frankly told the viewers of his "Mad Money"TV show Thursday after another down day on Wall Street.

Cramer said after two days of stock market gains, gold reversed course and headed higher as the crisis agenda returned to center stage.

America is back on recession watch, said Cramer, as disappointing jobless claims once again fanned the flames of worry. "There's still nothing good happening in Europe," Cramer added, as leaders there are still on vacation.

But there was at least some good news, said Cramer. First, shares of Apple ( AAPL), a stock which Cramer owns for his charitable trust, Action Alerts PLUS, didn't get crushed after CEO Steve Jobs announced his resignation. There was also the news of Warren Buffett taking a $5 billion stake in Bank of America ( BAC), another Action Alerts PLUS name.

Cramer said the news of Buffett's investment is particularly good news for the beleaguered bank. He recalled that in 2008, there were bear raids on bank stocks that drastically lowered share prices, spurring rating agency downgrades that led even lower prices and eventually sent countless banks to their demise. Cramer said the same thing was happening with Bank of America, as the shorts were circling like vultures, waiting for their next move.

But just as the short sellers were close to cracking the safe at Bank of America, in comes Warren Buffett, putting all of those fears to rest once and for all. The worst case scenario is off the table, said Cramer, but the bank still has a lot of work ahead of it. He said shares of Bank of America might even soon be a buy.

Software Is King

In an exclusive "Executive Decision" segment, Cramer sat down with Bill McDermott, Co-CEO of the software and consulting firm of SAP AG ( SAP), a leader in mobility and supply chain management solutions for the enterprise space.

McDermott said that in the technology space, hardware is a losing bet, but software innovation and helping companies grow and become more efficient, is highly in demand. He said there are two economies in the world, one that revolves around your house and your job, which is awful, and another that revolves around corporations, which are flush with cash and looking to grow and expand with new technologies.

McDermott said SAP is not seeing any signs of a global slowdown, adding even business in Germany is growing. In its most recent quarter, SAP grew 34% year over year and was able to raise its outlook for the rest of 2011.

McDermott then showed Cramer his iPad running SAP software. He said the future is all about mobility, the cloud and real-time information, all of which were demonstrated on his iPad. McDermott said that SAP works closely with Apple and is the largest user of iPads in the world. "Everything on an iPad looks gorgeous," he said, as he wished Steve Jobs all the best in his new endeavors.

Cramer said that tech stocks are almost out of their summer doldrums, and SAP is one stock investors need pick up ahead of the fall season.

Organic Food Boom

In a second "Executive Decision" segment, Cramer once again spoke with Irwin Simon, chairman, president and CEO of Hain Celestial Group ( HAIN), which just delivered a two-cent-a-share earnings beat on 31% year-over-year growth. Shares of Hain are trading six points off their 52-week high thanks to overall market weakness.

Simon said that Hain is focused on providing affordable, naturally organic products, something that's resonating with the American consumer. He said consumers want products that are gluten free, low sodium and good for them and that's exactly what Hain provides. Simon noted that stores across the East Coast are getting wiped out of Hain products ahead of Hurricane Irene, as proof that even in a crisis, they want healthy foods.

Simon noted that Hain is growing at 9% to 11% a year and there are a lot of great things happening at the company. He said in the baby food market, 9 million mothers a month are visiting the company's Website and Hain expects to sell 95 million jars of Earth's Best baby food this year. Even in older brands, Simon said that Hain is cleaning up the ingredients and relaunching to great successes.

When asked about rising commodity prices, Simon said Hain was able to push through a 3.5% price increase, but overall he expects fuel and plastics prices to fall next year, helping the bottom line. Simon also noted that Hain removed $20 million in costs from their operations in order to increase efficiency.

Am I Diversified?

Cramer played "Am I Diversified" with callers to see if their portfolios have what it takes. The first caller's portfolio included Blackrock ( BLK), ConAgra Foods ( CAG), McDonald's ( MCD), Microsoft ( MSFT) and Enterprise Product Partners ( EPD).

Cramer said this portfolio was picture perfect.

The second caller's top holdings included DuPont ( DD), Qualcomm ( QCOM), Merck ( MRK), Clorox ( CLX) and Vertex Pharmaceuticals ( VRTX).

Cramer said that Merck and Vertex were too similar and he advised selling Merck in favor of a utility company.

The third caller had ExxonMobil ( XOM), Phillip Morris ( PM), Annaly Capital ( NLY), Southern Copper ( SCCO) and Linn Energy ( LINE) as their top five stocks.

Cramer said this portfolio can't have Exxon and Linn Energy. He advised selling Exxon and buying a health care stock.

The fourth caller's top stocks were NuStar Energy ( NS), Windstream ( WIN), CSX ( CSX), Bank of America ( BAC) and Honeywell ( HON).

Cramer said this portfolio "rocked."

Lightning Round

Cramer was bullish on ConocoPhillips ( COP), Baidu.com ( BIDU), Travelers Companies ( TRV), Kinder Morgan Energy Partners ( KMP), MarkWest Energy Partners ( MWE) and Solar Capital ( SLRC).

He was bearish on Youku.com ( YOKU), Enbridge ( ENB), Micron Technology ( MU), United States Steel ( X), iShares Silver Trust ( SLV), Aqua America ( WTR), ONEOK Partners ( OKS) and Nordic American Tanker ( NAT).

Closing Comments

In his "No Huddle Offense" segment, Cramer asked "what do we do with Apple" now that Steve Jobs has stepped down?

Cramer said in times like these, he sticks with the math. He said Apple is projected to earn $7 a share this quarter, but that's too low. Cramer predicts $9 a share. For 2012, Cramer predicts earnings of $40 a share. Backing out Apple's expected $110 a share in cash by year's end, he said Apple trades at an utterly ridiculous six time earnings. That's less than half of what an average trades at and Apple is far from average.

Given that Apple has all the momentum in the world, Cramer said he's sticking with Apple's new CEO, Tim Cook, and wishes all the best for Jobs, whom Cramer regards as the best business leader of our time. "Steve has instilled his wisdom into the next generation," said Cramer, which is why he continues to have faith in Apple.

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

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To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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For more of Cramer's insights during the Lightning Round, clickhere .

At the time of publication, Cramer owned Apple, Bank of America.

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."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

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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