NEW YORK ( TheStreet) -- "Don't lose your discipline," Jim Cramer warned his "Mad Money" TV show viewers after another modest gain on Tuesday on Wall Street. Cramer told investors that even though the market may continue higher, they should take some profits and wait for a pullback before buying back in. He then explained what's going right for the markets, and what we still should be worried about. On the plus side, Cramer said the Chinese stock market has bottomed, meaning that a recovery should be close at hand. Cramer said that's good news for materials stocks, especially copper plays like Freeport McMoRan ( FCX), but also other industrials like Honeywell ( HON) and Joy Global ( JOYG). Another positives for the markets include auto sales, said Cramer, but that move is mainly benefiting the parts makers like Borg Warner ( BWA). There's also a bottom forming in housing, he said, and that matters big for job creation. But on the negative side, worries in Europe still loom, with debts in Italy being of special concern. Cramer said that Juniper Networks ( JNPR) poured cold water on the tech rally today with a weak outlook and he's now concerned that semiconductors may not be as hot as once thought. Cited cited the high price of oil amidst increased geo-political tensions as another worry for the markets, as are the bank stocks. "Don't overstay your welcome in the banks," he said, once again reiterating Wells Fargo ( WFC) and US Bancorp ( USB), a stock which he owns for his charitable trust,
Delivering on All FrontsIn the "Executive Decision" segment, Cramer spoke with Dr. Leonard Schleifer, president and CEO of Regeneron Pharmaceuticals ( REGN), a biotech company that's seen a spectacular 1,400% gain since Cramer first featured the company on "Mad Money" in the spring of 2005. Schleifer painted a bullish picture of Regeneron on the heels of successes with its drug Eylea, used in treating many blinding eye diseases. Schleifer said that from the beginning, Regeneron wanted to create a drug that doctors would love, that patients would love and that insurance companies would be happy to pay for. "We've delivered on all fronts," Schleifer declared. Eylea's strength comes from the fact that the in-eye injection is only needed once every two month, as compared to monthly for its rival. Given how uncomfortable patients are with shots in the eye, Schleifer said it's easy to see why so many are opting for once every two months. But Regeneron is much more than a one-hit wonder, said Cramer. Schleifer noted that the company is also working with Sanofi-Aventis ( SNY) on two promising projects, one for colo-rectal cancer and the other, a cholesterol lowering medication that "dramatically" lowers a patient's cholesterol levels. Schleifer also comments on Regeneron's pricing model, which is notably lower than its rivals. "You can't just charge anything you want to charge anymore," said Schleifer, who has chosen instead to price Regeneron's drugs affordably for both patients and insurance payers. Cramer said that Regeneron remains a great story with a lot of upside potential still to come. He reiterated his recommendation.
Housing Bottom Play"The bottom in housing has arrived," Cramer told viewers, as he continued his series of indirect ways to play the looming recovery in domestic housing. The homebuilders are too risky, he said, but a company like Masco ( MAS), which makes building products like kitchen and bath cabinets and plumbing fixtures, is right in the sweet spot. Shares of Masco are already up 65% since October, but Cramer said compared to five years ago, when shares traded near $35 a share, this is one stock that still has a lot of room to run. He said unlike the home builders, which rely 100% on new home construction, Masco only derives one-third of its sales from new homes. The bulk of its sales, 46%, comes from home repair and remodeling, which is one of the first sectors to recover as consumers begin to feel confident about their homes again. Cramer said the analysts covering Masco are simply clueless. He said while many have slashed their earnings estimates for the company, only one rates the company a buy, while 13 rate it a hold and two rate it a sell. The beginning of a recovery is not the time to hold or sell, said Cramer. The time to buy is before the bottom becomes obvious to everyone, he noted.