'Mad Money' Recap: Too Far, Too Fast? (Final)

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(Story updated to add Cramer's picks in the Lightning Round and his interview with a CEO of an apartment REIT who has a different view of the industry from Cramer's.)

NEW YORK ( TheStreet) -- Jim Cramer gave the bears their due on his "Mad Money" TV show Monday.

He said the bears have valid reasons why the markets should be lower. But said that when those negatives are put into context, they're just not enough to be keeping investors out of stocks.

Cramer explained that many bears complain that the markets have risen too far, too fast. "The markets don't get speeding tickets," retorted Cramer, who reminded viewers that stocks are still cheap when compared to various other points in history.

Next Cramer addressed the elephant in the room, Apple ( AAPL), a stock which he owns for his charitable trust, Action Alerts PLUS, and one that's been on a parabolic rise. Cramer told viewers to put Apple into context as well, by dividing its share price by ten. Using that arithmetic, Apple was a $40 stock that's risen to $55. "That's not a big move," declared Cramer.

Cramer went on further to explain that Apple still has a price earnings ratio of just 13, while the average stock in the S&P 500 is trading at 14. Does Apple have less than average growth? He also compared Apple to similar high-growth names, like Chipotle Mexican Grill ( CMG) and Under Armour ( UA). Both of these stocks have price earnings multiples of 40.

Then there's China, a country that is showing signs of a slowdown. But can that slowdown be from weak sales in Europe? Or maybe a focus internally rather than externally? If so, then Cramer said that slowdown may soon be over. Cramer also discounted fears about the retail sector, noting that job growth trumps any rise in gasoline prices and will keep this sector humming along.

Cramer said his only true worry for the markets are the transports. He said that weak transports are always negative for the markets, but even here, a case can be made that weak coal demand is hurting the rails while higher fuel prices is crimping the airlines. That said, maybe even the transports aren't as weak as they appear.

Cramer said that stocks will slip and slide from time to time, but added that if investors get too negative, they will miss brilliant moves by Apple and others.

Demandware IPO

In the "Know Your IPO" segment, Cramer once again reminded viewers never to confuse a trade with an investment. He said especially in the IPO market, investors must get in on the IPO itself and sell on the initial pop. "Buying an IPO in the aftermarket is the ultimate investing no-no," he told viewers. With so many highly-hyped IPOs, like Groupon ( GRPN) and Yelp ( YELP), coming to market, Cramer said it's easy to see why investors are getting hurt.

Enter Demandware, an ecommerce cloud software provider that's following in the footsteps of Salesforce.com ( CRM), sans the media frenzy. Cramer said unlike Groupon and Yelp, average investors can actually get shares of the Demandware IPO, and the company actually has a good subscription based business model to boot.

Cramer said that while Demandware has yet to turn a profit, the company has a clear plan to do so. Its addressable market, ecommerce, is gigantic with 21.3% annual growth prospects. Additionally, the company's management has a lot of experience under its belt, and Demandware also has some big customers using its platform.

Demandware expects to come public trading around 5.5 times its sales, but Cramer said the company deserves a premium multiple around seven times sales given its potential for growth. That would make Demandware IPO shares a steal up to $16 a share.

Bullish Manufacturing Outlook

In the "Executive Decision" segment, Cramer once again welcomed Alan KcKim, president and CEO of Clean Harbors ( CLH), which is in the business of making dirty industries cleaner.

Clean Harbors surprised Wall Street when it last reported on Feb. 22 with a 24-cent-a-share earnings beat on sharply higher revenues. The company also raised full-year guidance. Shares of Clean Harbors are up 22% since Cramer last spoke with McKim on Nov. 15.

KcKim was bullish on Clean Harbors' outlook on the manufacturing sector. He said that manufacturing in the U.S. will continue to grow, especially in the chemicals business, thanks to lower costs. KcKim was also upbeat on Clean Harbors' incinerating business, where the company manages 69% of the total U.S. incinerator volume. He said that America needs more incinerator capacity and Clean Harbors will be providing it.

Turning to the ailing natural gas sector, KcKim said that only about $100 million of his company's revenues are tied to natural gas, but there is still a lot of drilling happening and many companies are simply shifting from gas to oil and other liquid drilling. He noted that the Canadian oil sands still represents a huge opportunity.

When asked about some political hot-button issues, KcKim came out in favor of the Keystone XL pipeline project. He said that pipelines are the safest way to transport oil and gas and the pipeline will keep drilling in America going. KcKim also was in favor of wastewater recycling at all drilling and hydraulic fracturing sites. He said that with unified regulations, treating wastewater at the well will be the best option.

Cramer remained bullish on Clean Harbors.

In Defense of Apartment REITs

In the "Executive Decision" segment, Cramer spoke with Jeffrey Friedman, chairman, president and CEO of Associated Estates Realty ( AEC), an apartment real estate REIT that operates 52 apartment properties in eight states and has a 4% dividend yield. Friedman was all to eager to offer a different perspective to Cramer's recent pan of the entire apartment REIT sector.

Friedman explained that household formation is the main driver for apartment REITs and with 1.2 million new households being formed this year, and 35% of those renting, the market has never been better especially with new construction at historic lows. Friedman challenged Cramer's theory that low home prices would spur a mass exodus of renters. He said that the cost to own a home is still two to three times more than renting and varies on a market by market basis.

Friedman supported his view with raw data on the number of Associated Estates' tenants who move out in and into a home they've purchased. He said in Southeast, including Georgia and Florida where home prices are still falling, the company is still seeing low percentages of move-outs, while in the Midwest, where home prices are more stable, the percentage is slightly higher. Altogether, Friedman said that only 17% of tenants are moving into homes, compared to 27% in 2005.

When asked about the ability to raise rents, Friedman said that currently rents hover at 20% of household income, but that percentage could rise to 25% before meeting resistance, giving the company a low of "runway" for additional revenues.

Cramer said he was wrong to put the entire sector into the same boat. He said that Associated Estates has a good yield and good growth, and the apartment REITs should be considered on a company by company basis.

Lightning Round

Cramer was bullish on KLA-Tencor ( KLAC), Abbott Laboratories ( ABT), Microsoft ( MSFT), Energy Transfer Partners ( ETP) and Spectra Energy ( SE).

Cramer was bearish on Transocean ( RIG), Kinder Morgan Energy Partners ( KMP) and Sprint Nextel ( S).

HP Fading

In his "No Huddle Offense" segment, Cramer declared that Hewlett-Packard ( HPQ) will be the gift that keeps on giving, at least to the short sellers and the company's competitors. He said he sees no area where HP has a dominant position, except maybe in printers. But even there, he noted, customers would love to be freed from confusing, over-priced ink cartridge refills.

Cramer said he seeing rivals like SAP ( SAP) cherry-picking HP's consulting business, while Apple continues to dominate in phones, tablets, notebooks and desktops. He said even HP's new CEO, Meg Whitman, acknowledges the company's lack of innovation, but it may already be too late for the company to regain its footing as its rivals are already sucking away customers, revenue and employee talent.

--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 Apple.

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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