Cramer's 'Mad Money' Recap: Dangerously Complacent (Final)

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NEW YORK ( TheStreet) -- "We're starting to think that nothing can go wrong," Jim Cramer warned his "Mad Money" TV show viewers on Monday.

He said that's a recipe for complacency, which is always dangerous. Cramer said he likes markets that rally off of worry and fear, adding those are the ones with real power. "I do not like markets that rally off of euphoria and good feelings," he continued.

Cramer explained that just two weeks ago the markets were preparing for the end of the world, the collapse of the European banking system and the collapse of a few European countries as well. But in just two short weeks, all of the news has reversed and the markets have regained lost ground.

The markets are now assuming that there will be no bank collapses, said Cramer, along with no more sovereign debt issues. He said there's an assumption that banks are using low rates to recapitalize and all of our economies will just start humming along without worry. And it's for all of those reasons that Cramer said he cannot lower is threat assessment of DEFCON 3 for the markets.

Cramer said he can't' recommend investors buy into a market where everything is set up to go right, because it never does. "Wait for a break before buying," he told viewers, "and if you haven't sold already, it's time to trim." He said even the red-het retails and cyclicals and oil stocks should be trimmed into the rally.

"Stay cautious," Cramer told viewers, "a better time to enter now awaits us."

Making Circuit Boards Smaller

In the "Executive Decision" segment, Cramer once again spoke with TJ Rodgers, president and CEO of Cypress Semiconductor ( CY), which just launched a new subsidiary, Deca Technologies.

Rodgers explained that while chips have been getting smaller and smaller, the traditional green printed circuit boards that they get soldered to haven't. He said if the leads coming off of a chip were the width of a finger, it's like soldering them to a lead the width of a freeway.

Enter Deca Technologies, a wholly-owned subsidiary of Cypress that is working on micro-printed circuit boards. Rodgers said that these new circuit boards are so small that chips can be rearranged on the tops and bottoms of the boards, essentially making a "computer on a cube" that could house the Library of Congress on a fingernail.

Rodgers said that Deca Technologies didn't invent this technology, but is using the processes developed by Cypress' other notable spin-off, Sunpower ( SPWR) to perfect the technology and make it affordable for consumer devices. Rodgers said the market opportunity is $1.5 billion and is growing at 15% a year.

When asked if the plan would be to spin off Deca as a separate company as it did with Sunpower, Rodgers said that is indeed the plan.

Finally, when asked if he was optimistic about the quarter for Cypress, Rodgers said that he's more certain and the company's factories are producing as a reasonable rate. Cramer remained bullish on Rodgers' ability to innovate and of Cypress' ability to reward shareholders.

Mastercard Gets Nod

In a new segment called "Tweet Like Mad," Cramer answered questions he received @JimCramer on Twitter. Asked whether Visa ( V) or MasterCard ( MA) is the better play, Cramer said that while both companies are good, MasterCard would ultimately get his vote.

Cramer explained that unlike the banks, credit card processors don't loan money and simply make their money from the dollar volume they process. That means both companies are plays on the move from paper to plastic in the emerging markets.

Both stocks have had big runs, with MasterCard already having moved 66% on the year. But Cramer said that MasterCard has more international exposure, as well as more opportunity to take share and improve its margins, which ring in at 55% versus 64% for Visa. MasterCard is moving in the right direction, he noted.

Trading at 17 times earnings, MasterCard is still inexpensive since the company has already reaffirmed its growth targets, he said.

Value Oil Play

"We're entering a new era of high oil prices," Cramer told viewers, as he kicked off a week-long series on stocks that will benefit from permanently high oil prices.

His first pick, Fluor ( FLR), the engineering and construction company that gets 60% of its revenues from the oil and gas industry. Cramer currently owns shares of Fluor for his charitable trust, Action Alerts PLUS .

Cramer explained that Fluor is the top engineering and construction firm on earth, with excellent know-how and the reputation to prove it. Yet shares of the company are off 17% for the year, falling some 20 points from its 52-week high. Shares of Fluor now trade at just 14 times earnings, while historically the company usually trades at 19 times earnings, with its peak at 22 times earnings.

Flour did miss estimates when it reported earnings on Nov. 3 and offered only conservative guidance, but Cramer noted that the company's higher costs stemmed from a single wind farm project that has kept a lid on the stock. THat project is now 90% complete and should only impact one additional quarter, he said.

But more importantly, Cramer said that engineering and construction companies should be valued on their backlogs. Fluor currently has a $42 billion backlog of business, up 26% from last year. That compares to its rivals, all of which saw a decline in their backlog thanks to Euro fears and the economic slowdown.

With all of its divisions doing well, the company's stock buyback program and $7 a share in cash, Cramer said the Fluor is set to prosper as oil prices remain high for the foreseeable future.

Lightning Round

Cramer was bullish on Baidu.com ( BIDU), Kohlberg Kravis Roberts ( KKR), KKR Financial Holdings ( KFN), SPDR Gold Shares ( GLD), ValueClick ( VCLK) and Google ( GOOG).

Cramer was bearish on Tesla Motors ( TSLA), iShares Silver Trust ( SLV) and Carnival ( CCL).

Lightening Up on Tech High-Fliers

In his "No Huddle Offense" segment, Cramer opined on the resurgence of the high-multiple stocks like Salesforce.com ( CRM), Chipotle Mexican Grill ( CMG) and even Netflix ( NFLX).

Cramer said this current rally was started by companies like Apple ( AAPL) and Google ( GOOG), but was fueled even further by the takeover of SuccessFactors ( SFSF) by SAP ( SAP).

Cramer characterized the move as a classic multiple expansion, in which the markets are willing to pay more for future earnings. But Cramer remained cautious, saying that he likes buying these high-fliers when the earnings rise, not the market's perception of those earnings. He advised lightening up on these names and waiting for next earnings season to buy more.

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

To contact the writer of this article, click here: Scott Rutt.

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At the time of publication, Cramer was long Fluor.

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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