Cramer's 'Mad Money' Recap: Unhealthy Dose of Skepticism (Final)

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NEW YORK ( TheStreet) -- Sometimes stocks go up because they deserve to, Jim Cramer told his "Mad Money" TV show viewers Wednesday, as he responded to a wave of what he deemed "unhealthy skepticism."

Cramer explained that skeptics can keep investors out of great stocks and they never apologize when they get it wrong. Such was the case with Sherwin-Williams ( SHW), a company that preannounced huge upside after Monday's trading. The skeptics take? Must have been due to warmer weather.

But Cramer noted that anyone who listened to Sherwin's conference call would have known that the real driver was interior paint, not exterior paint. The company's huge sales were from rising demand, not from a weather anomaly. So what happened to all of the skeptics? They missed out on a huge rally to a new 52-week high for Sherwin-Williams.

Terrific retail sales all over have been attributed to a warm winter, said Cramer, but nothing could be farther from the truth, as natural demand is what's keeping sales at VF Corp ( VFC) and PVH Corp ( PVH) humming along.

Demand can be seen in stocks like Alcoa ( AA), which saw aluminum demand for cars and aerospace rise, and with Owen-Illinois ( OI), which is profiting from not only rising demand but also falling costs.

"Business is better," Cramer concluded, no matter what the skeptics in the markets may be telling you.

Executive Decision

In the "Executive Decision" segment, Cramer spoke with Kelcy Warren, chairman and CEO of Energy Transfer Partners ( ETP), an oil and gas pipeline master limited partnership with a 7.7% dividend yield. Energy Transfer Partners is currently a stock that Cramer owns for his charitable trust, Action Alerts PLUS.

Kelcy was very candid in admitting that being a pipeline company with 90% exposure to natural gas is not a great place to be at the moment with gas prices falling to historic lows. However, he noted, things won't be getting any worse for the company and Energy Transfer is committed to moving into transporting heavier liquid products that will offer greater returns.

Kelcy went on further to note that investors buy into Energy Transfer for both the yield and for growth, and the company has let them down in the growth department as of late. He said that will change as the company integrates its recent acquisitions and diversifies the products it transports.

When asked whether the transition will require additional equity offerings, Kelcy said that it likely would. He also said that more equity isn't necessarily a bad thing, as Energy Transfer has a track record of investing capital wisely to produce great returns for unit holders.

Finally, when asked about U.S. energy policy, Kelcy said that our country absolutely should be using natural gas for surface vehicles. He said the competitive nature of the gas business inhibits the industry from telling its story better, but using the cleaner, cheaper and most importantly, domestic, natural gas makes great sense for America.

Cramer said he's still a believer in Energy Transfer Partners, a stock which he said pays you to wait for growth to return.

Growth Stocks: Ross Stores

Continuing with his week-long series of great American growth stocks, Cramer highlighted Ross Stores ( ROST), the off-price retailer that's seen shares rise 34% since Cramer last featured it in Oct. 2011.

Using his 10-point checklist, Cramer noted that Ross has multiple years of growth ahead of it, is highly competitive and currently only has 6% market share, leaving tons of room for growth. The company is also shareholder friendly, with a great track record of raising its dividend. While Ross is not currently expanding internationally, Cramer said that growth overseas is not out of reach for the company.

Looking internally, Cramer said that Ross has a strong balance sheet with little debt, a solid management team and trades at just 15.6 times earnings with a 13% growth rate. Additionally, Ross isn't held hostage by the economy, as its discount merchandise is in demand no matter what the economy is doing. Ross is also seeing its gross margins expanding as it continues to defy rising costs with additional cost-cutting and price increases.

Cramer's conclusion? Ross Stores is a terrific buy, especially when the market pulls back and puts this great retailer on sale.

Am I Diversified?

Cramer reviewed portfolios via phone and Twitter @JimCramer to see if the portfolios have what it takes for today's markets. The first tweeter's portfolio included Halliburton ( HAL), ArcelorMittal ( MT), NII Holdings ( NIHD), Alcoa ( AA) and Applied Materials ( AMAT).

Cramer said that Alcoa and Arcelor were too similar and Arcelor should be replaced by a health care stock.

The next caller's top holdings included Berkshire Hathaway ( BRKB), Apple ( AAPL), Wyndham Worldwide ( WYN), Domino's Pizza ( DPZ) and IBM ( IBM).

Cramer advised selling IBM, also in favor of a health care stock.

The third caller had ConocoPhillips ( COP), NextEra Energy ( NEE), Verizon ( VZ), Huntington Bancshares ( HBAN) and Bristol-Myers Squibb ( BMY) as their top five stocks.

Cramer once again identified two-of-a-kind with Conoco and NextEra. He advised adding an industrial stock like United Technologies ( UTX)

The fourth caller's top stocks were Verizon ( VZ), Linn Energy ( LINE), Energy Transfer Partners ( ETP), CSX ( CSX) and B&G Foods ( BGS).

Cramer continued his streak of changes by recommending the sale of Linn Energy and the addition of a health care stock.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer sounded off against those willing to speculate on Nokia ( NOK), a low dollar stock that's simply a deeply troubled company.

Cramer asked the question, if Nokia were to do a 10:1 reverse split sending shares to $42 a piece, would investors still be interested? Probably not. Cramer said that Nokia has restructured itself multiple times and nothing seems to make a difference. The company may not be going out of business overnight, but it is clearly a value trap that will continue to bleed market share and revenue for years to come.

When it comes to Nokia, Cramer told investors to think Kodak, not Apple ( AAPL).

Lightning Round

In the Lightning Round, Cramer was bullish on Annaly Capital ( NLY) and Discover Financial Services ( DFS).

Cramer was bearish on Genworth Financial ( GNW), Wal-Mart ( WMT) and LinkedIn ( LNKD).

--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's Action Alerts PLUS was long ETP.

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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