Cramer's 'Mad Money' Recap: Balancing Act (Final)

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NEW YORK ( TheStreet) -- "Yes, I worry," Jim Cramer told his "Mad Money" TV show viewers Wednesday, as he outlined the concerns that keep him up at night, as well as those that don't.

He said that any good investor always needs to ask themselves, "what could go wrong?" That holds especially true as the markets are surging higher.

Cramer said the first thing that keeps him up at night is the looming crisis between Israel and Iran. He called the rising tensions the "elephant in the room," and not one to be taken lightly. With the European economy still slowing and the U.S. producing more oil than in the past decade, he said oil sanctions against Iran may not be enough.

Similarly, Cramer's worried about the price of gasoline. He said that $4 per gallon has always been the breaking point for Americans, the point when there's simply not enough money left over for dining and shopping. "We need gas lower," he said simply.

Third, Cramer said he's concerned with taxes going up. Federal Reserve chairman Ben Bernanke said taxes were a concern, and Cramer said if Bernanke is worried, then he is too.

Fourth, Cramer said he's worried about all of the perma-bears, the naysayers for the last 6,500 Dow points, who are now turning bullish on the markets. When there's nobody left selling, noted Cramer, that's the time to worry.

Finally, Cramer said he's worried about a sell-off on either good or bad news about the Greek debt situation. With the markets rising in the face of the continuing crisis, Cramer said he expects investors to use any resolution to take profits.

But there are also some things Cramer said he's not worried about. Cramer said he's not worried about earnings, for one, as they're terrific. He said he's also not worried about politics. In a simple explanation, Cramer said if Obama wins, then things must be getting better, and if he doesn't, then our president will likely be someone the stock market likes better.

Cramer noted he's also not worried about so-called "stretched valuations." He said that stocks are only expensive when looking through the prism of the past few years. Looking ahead, those valuations are not stretched in the least, he said.

Delivering on Promises

In the "Executive Decision" segment, Cramer spoke with Stephen Holmes, chairman and CEO of Wyndham Worldwide ( WYN), which not only delivered spectacular earnings but also boosted its dividend by 53%, a move which sent shares up 6.1%. Wyndham operates 7,200 hotels under 15 different brands and is also the number one vacation timeshare company in the U.S.

Holmes said he's confident in his company and confident in its future, as Wyndham continue to build momentum for shareholders. He said that Wyndham is still a relatively new company, having had its IPO just five years ago, but it's building a track record of delivering on its promises. In addition to its hotel and timeshare business, Holmes also noted RoomKey.com, one of Wyndham's online properties that allows customers to access multiple hotel properties all at once and get the best possible prices.

When asked about its diverse mix of businesses, Holmes said that Wyndham does indeed have a great group of businesses, but they're not looking to breakup or spin off any at the moment. He said the business mix has allowed Wyndham to only have 15% of revenues come from Europe, for example, which helps it deliver consistent results.

Finally, when asked about the U.S. consumer, Holmes said that the U.S. customers seem to be feeling better about the economy. He said that his hotels are fuller and patrons seem to be in a better state of mind.

Cramer said the Wyndham is still a relatively unknown company on Wall Street, but should be one in investors' portfolios.

More Than Chicken Wings

In the "Executive Decision" segment, Cramer spoke with Sally Smith, president and CEO of Buffalo Wild Wings ( BWLD), the beer and wings purveyor that delivered a six-cent-a-share earnings beat on a 34% pop in revenues, all in the face of higher chicken wing prices and doubtful analysts.

Smith said that she tries to convey to analysts that the price of chicken wings does not make or break the company, and indeed some do understand that wings are just one facet of the business. She said that while wings used to account for 40% of sales, that number is now closer to just 20%. "We manage a whole basket of commodities," said Smith, as well as construction costs, management training and technology upgrades.

When asked about growth opportunities, Smith said that Wild Wings currently has two locations in U.S. airports, both of which are doing well. She said there may be 60 to 75 other airport locations that might also be a perfect fit for the company. Smith also noted that Wild Wings is focusing on smaller towns that lack a wide variety of dining options as well as colleges throughout the country. "Every campus could have a Buffalo Wild Wings close by," Smith added.

Turning to some of the company's other initiatives, Smith said that Wild Wings has over 6 million followers on Facebook and is actively participating with their customers. The company also focused in 2011 on upgrading its beer selection, a segment that provided excellent revenues for the company.

Cramer said that it is possible for analysts and investors to be too skeptical about a company. He said that Smith has the situation under control and this is one stock that is not done going higher.

Private Label Boom

In yet another "Executive Decision" segment, Cramer once again sat down with Joe Papa, chairman, president and CEO of private label drugmaker Perrigo ( PRGO), a long-time Cramer favorite.

Papa said that while the economy is improving, and migration to private label brands is slowing, he's focused on the fact that 91% of consumers who try a private label brand stick with it in the future. Even more exciting are the 45 new products that Perrigo will be introducing this year which represent a $190 million opportunity for the company.

Papa was also upbeat about Perrigo's longer-term pipeline, as over $10 billion worth of prescription drugs will be moving over-the-counter over the next five years. Some of the notable brands Perrigo is targeting include Mucinex, Prevacid, Delsym, Claritin-D and Allegra-D.

When asked about the warmer weather and lower birth rates here in the U.S., Papa said that Perrigo's cough, cold and flue segment is down about 8% this season but since that group only accounts for 12% of sales, he's not worried. Likewise with the 3% drop in birth rates this year. Papa said the stronger trend is that of new parents ditching the national brands for Perrigo's private label alternatives.

Papa's final point of interest was the fact that Perrigo manufactures many of its own active ingredients, which often account for 40% to 50% of the overall cost of the product. Because this process is in-house, Papa said Perrigo is not seeing as much commodity price pressure as some other companies do.

Cramer continues his support for Perrigo.

Lightning Round

Cramer was bullish on Harman International ( HAR), Covidien ( COV), Life Technologies ( LIFE), People's Bank ( PBCT), Goldman Sachs ( GS), Morgan Stanley ( MS), Pfizer ( PFE), Bristol-Myers Squibb ( BMY), Ford Motor ( F) and Alcoa ( AA).

Cramer was bearish on Dendreon ( DNDN), VOXX International ( VOXX), Pepsico ( PEP), Walgreens ( WAG) and Linn Energy ( LINE).

Special ETF

In a quick "All Request Week" segment, Cramer explained why he recommends the SPDR Gold Shares ( GLD) ETFs and not any other exchange traded funds.

He said unlike other ETFs, the "GLD" is not a basket of stocks but rather a fund that tracks the actual price of the commodity. When it comes to baskets of stocks, Cramer said "you can do better" by picking only the best stocks in certain sectors.

So why buy the GLD and not actual gold? Cramer said it's because buying gold is hard, as it requires storage. He said he's a fan of coins, but the markup in coins is often outrageous. And when it comes to gold mining stocks, these companies face many challenges and cannot be relied on.

That's why Cramer said he's always been a fan of the GLD and its cousin, the iShares Gold Trust ( IAU), a fun which he owns for his charitable trust, Action Alerts PLUS .

--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 iShares Gold Trust.

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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