Cramer's 'Mad Money' Recap: No Stopping Apple (Final)

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NEW YORK ( TheStreet) -- "The United State of Apple is alive and well," Jim Cramer proclaimed to the viewers of his "Mad Money"TV show Monday. Cramer said that Apple ( AAPL), a stock which he owns for his charitable trust, Action Alerts PLUS, was one of the leading drivers in today's rally off the lows.

Cramer explained that with so much negativity in the markets preparing for a slowdown or global recession, it's only natural that investors are looking for growth wherever they can find it. He said the most logical company that has growth, is Apple.

Consensus estimates are for Apple to earn $32 a share in fiscal 2012, but Cramer said those estimates are drastically too low. He said with the world clamoring for the next iPhone and the iPad still the only game in town, not to mention the downfall of rivals Hewlett-Packard ( HPQ) and Research in Motion ( RIMM), Apple could earn as much as $45 a share.

Back out the company's projected $150 a share in cash, and that leaves Apple trading at a mere five times earnings. That's five times earnings for Apple, compared to an average of 13 times earnings for the rest of the S&P 500, Cramer added.

Cramer said he expects to see analysts drastically revising their targets for Apple upward in the coming weeks, sending shares flying. He said so strong are Apple's prospects, that it's taking a host of other growth stocks with it, stocks like Deckers Outdoor ( DECK), Green Mountain Coffee Roasters ( GMCR), Wynn Resorts ( WYNN), Polo-Ralph Lauren ( RL) and VF Corp ( VFC).

Cramer also gave the nod to other high fliers such as Whole Foods ( WFM), ( AMZN) Panera Bread ( PNRA) and Chipotle Mexican Grill ( CMG), a stock that was up over 5%.

Big Dividend Companies

"In this market, you need companies that will pay you to wait," Cramer told viewers, as he began a week-long series highlighting companies with big dividends as well as plans for continued growth. He started with paper giant International Paper ( IP), which currently yields 3.85%.

Cramer said International Paper is being run better than ever. With new pricing controls and supply and demand in balance, the company has more control over inventory, and thereby pricing, than ever before, he said. According to Cramer, even in this miserable downturn, International Paper has been able to shine.

The company also has a great track record of acquisitions, as noted by the company's proposed $3.2 billion bid for Temple-Inland ( TIN), a deal that is expected to close in early 2012. Cramer said that the company expects $300 million in synergies between the combined companies, but those estimates are likely far too low.

After many years of being more "domestic paper," Cramer said that International Paper now has a great international business, with growing assets in Russia poised to service all of China's growing paper needs. Cramer said that International Paper has a lot of room still to go in its international efforts.

International Paper last reported a 12-cent-a-share earnings beat, a feat Cramer said will likely be repeated when the company reports in October. Shares of the company trade at just 8.4 times earnings and Cramer said now is the perfect time to begin building a position, buying on any weakness.

Tech Value Play

Kicking off a new series entitled the "Time For Tech," featuring tech companies poised for breakouts to the upside after a horrible summer season, Cramer highlighted Juniper Networks ( JNPR), another Action Alerts PLUS holding.

Cramer explained that Juniper is now off 55% from its March highs after posting an utterly horrible second quarter earlier in the year. He said the stock, now flirting with its 52-week lows, will be hard pressed to head much lower and it's almost impossible for the company to really disappoint amongst drastically lowered estimates.

Cramer liked the fact that just about everyone has lost faith in this network equipment provider, especially given that the back half of the year is usually the best time for corporate and government IT spending. He said Juniper still has a small market share, but a strong line of new products ahead of it, so it should be easy for the company to once again begin taking market share.

But mainly, Cramer said Juniper is a value play, with shares trading at rock bottom prices. Juniper currently has $3.2 billion in cash on its books, the equivalent of $6 a share. That leaves shares trading at just 10 times earnings, despite the company's 16.9% growth rate and 20 times historical average.

Cramer said Juniper is likely to also report a weak third quarter, but that lackluster performance is already baked into its share price. He said that not much needs to go right for Juniper and even if the company reports inline numbers, the stock could rebound. Cramer said he sees three points of downside versus 10 points of upside.

Candid Talk

In an "Executive Decision" segment, Cramer sat down for a conversation with Chris Viehbacher, CEO of drug-maker Sanofi ( SNY), another Action Alerts PLUS stock that's been hit hard thanks to the European contagion.

Viehbacher said that its clear that investors aren't paying close attention to the fundamentals at the moment, as none of the company's fundamentals has changed. He said that Sanofi is still committed to rewarding shareholders, which is why the company increased its dividend payout ratio and why he personally as purchased Sanofi stock recently.

Regarding the company's upcoming patent expirations, Viehbacher said he's tired of playing the "cat-and-mouse" game with investors and has opted to tell it like it is. He said that patents do expire and they do hurt a company's bottom line, but there is nothing they can do about it. Viehbacher said this will be his fourth "patent cliff," and Sanofi will continue to grow, even through the decline.

Among the bright spots has been Sanofi's acquisition of Genzyme. Viehbacher noted that biotech products have a better probably of success through research and development and they also aren't as impacted by generics since the drugs they produce are difficult to produce.

Other bright spots for the company included Sanofi's diabetes business, where the company is one of only two major players in the insulin market, as well as a drug for MS, which is seeing success in trials with only eight treatments over an 8-week period, followed by three treatments a year later. Viehbacher said patients on that regiment are seeing no relapses 60% of the time.

Finally, when asked about how government price controls are affecting the company, Viehbacher said that less than a third of Sanofi's business is subject to price controls, and the company is working to further diversify into other areas to avoid such pressures.

Cramer continued his recommendation for Sanofi, calling the company's European-induced slide the perfect buying opportunity.

Lightning Round

Cramer was bullish on Deere & Company ( DE), O'Reilly Automotive ( ORLY), AutoZone ( AZO) and Prudential ( PRU).

Cramer was bearish on First Solar ( FSLR), MetroPCS Communications ( PCS) and New York Community Bancorp ( NYB).

Opportune Time

In his "No Huddle Offense" segment, Cramer said that every negative cloud has a gold lining, and today's weakness in the precious metal is the perfect moment to start building a position.

In addition to owning gold bullion and the SPDR Gold Shares ( GLD), Cramer said the time is finally right to start owning some individual gold stocks as well. He said that Newmont Mining ( NEM) is talking about a dividend increase, while Agnico-Eagle Mines ( AEM) has made some smart acquisitions.

Meanwhile, other miners like Rangold Resources ( GOLD) and Goldcorp ( GG) should finally start seeing their huge investments in mine expansions begin to bear fruit.

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

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At the time of publication, Cramer was long Apple, Juniper Networks, Sanofi.

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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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 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, 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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