Cramer's 'Mad Money' Recap: Growth on Sale (Final)

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NEW YORK ( TheStreet) -- It was a tale of two markets, Jim Cramer told his "Mad Money" TV show viewers on Monday, as he opined on the day's trading action. Cramer said that all of last month's winners got pummeled today, while a whole new class of stocks became en vogue.

Cramer said it may be hard for individual investors to fathom the intricate dynamics of the markets, but today's trading illustrated a classic "linked trade" with Europe. He said for weeks, hedge fund managers have been betting hundreds of billions on continued weakness in Europe. So today, when the U.S. dollar reversed course and took a turn for the better, many managers were caught on the wrong side of the trade.

That explains the action in many weak dollar stocks like 3M ( MMM), Johnson & Johnson ( JNJ) and Pfizer ( PFE), said Cramer. These stocks, along with many of the banks, all saw their shares slide today.

Then there are the Nasdaq darlings, Google ( GOOG) and Apple ( AAPL), a stock which he owns for his charitable trust Action Alerts PLUS. Cramer said that while Google slide due to weak earnings and a questionable stock split, Apple's slide seems to be one in sympathy with the search engine giant.

Cramer said there are many fund managers who would love to see shares of Apple lower, which explains many of the rumors swirling about telcos becoming unwilling to pay sky-high iPhone subsidies. He said the selling in Apple could also simply be investors taking profits to pay their taxes.

But whatever the reasons for all of the selling in the markets, Cramer said the fact remains that high-quality growth stocks of all kinds are now on sale and remain a great place in which to invest.

Executive Decision

In the "Executive Decision" segment, Cramer checked back in with Andrew Littlefair, president and CEO of Clean Energy Fuels ( CLNE), a stock that's up 61% since Cramer last spoke with Littlefair on November 14.

Littlefair said the economics for using natural gas for surface vehicles in the U.S. remain strong, adding that our country is passing up an incredible opportunity by not embracing the fuel. He said while Clean Energy Fuels doesn't need an endorsement from Congress, having leadership on the issue at the government level would go a long way toward moving the country to a new fuel.

When asked whether limited range is an issue surrounding natural gas car adoption, Littlefair said that presently, natural gas vehicles are averaging 240 miles per tank, which is plenty to get around. However he noted that America has yet to get serious about natural gas car design and still uses the shortcut of slapping a tank in the trunk. By building natural gas tanks into the frame, he said, where they belong, range can be dramatically increased.

Turning to a lack of filling stations, Littlefair said that Clean Energy Fuels remains focused on fleet vehicles, those that return to base every night such as buses and garbage trucks. However, the company is also building 100 filling stations currently and expects to build 170 this year alone. He said the economics of natural gas will help the industry balloon from there.

Cramer said that Clean Energy Fuels remains a speculative stock, adding that investors should do their homework before buying in.

Cabela's vs. Dick's

In a stock picker's market, investors need to be able to pick the best stocks, Cramer told viewers, as he compared Cabela's ( CAB) to Dick's Sporting Goods ( DKS) to find out which one reigns supreme in the hunting, fishing and sporting goods arena.

Cramer said on the surface, these companies may appear to be similar, but in reality, they're very different. Dick's is a big box retailer of sporting goods with 480 locations, while Cabela's started as a catalog merchant and now operates just 24 stores. Cramer said that while Dick's plans to open 24 stores this year, the growth edge goes to Cabela's, which is starting with a much smaller footprint.

Turning to same-store sales, Cramer said that Dick's only saw 2% growth in its existing stores last year, but Cabela's did better, averaging 2.8%. While both companies forecast 3% growth this year, Cramer said the edge still goes to Cabela's.

Then there's the issue of private label products, which command higher margins. Nearly 15% of Dick's sales are private label, while Cabela's averages 33%. Another point for Cabela's.

Cramer said that recent reports have noted that sporting goods, hunting and fishing gear in particular, don't suffer from online competition, which makes selling this class of merchandise advantageous. This bodes well for Cabela's, which has 54% of its sales stemming from hunting, fishing and outdoor items. Dick's, on the other hand, derives nearly half of its sales from athletic apparel, the definition of a cut-throat business.

Adding all these metrics up makes Cabela's the clear winner, said Cramer, which makes the fact that Cabela's stock is cheap, trading at just 13 times earnings compared to 17 times for Dick's, that much sweeter.

So when it comes to hunting and fishing gear, Cramer said that Cabela's is the clear winner.

Executive Decision, Part 2

In the "Executive Decision" segment, Cramer spoke with Alan McKim, chairman, president and CEO of Clean Harbors ( CLH), an environmental clean up company focused in the oil and natural gas industries.

McKim addressed the many recent concerns over horizontal oil and gas drilling and the process known as "fracking." He said that hydraulic fracturing has been around for many years and overall, has an excellent safety record. What our country needs, McKim added, is coherent regulations so we can put past mistakes behind us and mover toward energy independence.

When asked why Clean Harbors' stock seems to trade in lockstep with the natural gas industry, McKim said he's not sure why, as Clean Harbors only has limits exposure to natural gas and benefits from its waste disposal business as well as from an overall pickup in manufacturing.

McKim once again touted Clean Harbors' incinerator business as a bright spot for the company. He said that incinerators help remove toxic chemicals permanently from the environment and are getting cleaner all the time. Additionally, Clean Harbors has a large recycling business that helps remove oil, solvents, chemicals and heavy metals from the environment as well.

Cramer continued his recommendation of Clean Harbors.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on earnings from JPMorgan Chase ( JPM), an Action Alerts PLUS holding, and Wells Fargo ( WFC) along with the puzzling media coverage that followed.

Cramer said it's clear that while some media outlets reported on the facts, others chose to focus merely on the trading action that followed, which was decidedly muted on Friday as the markets overall tanked. Make no mistake, earnings at these banks were superb, said Cramer, with Wells in particular delivering amazing results.

Cramer said that both banks were about to deliver better earnings and revenues with falling loan losses, something that bodes well for the remainder of the year as the economy continues to improve and the financial crisis becomes more of a distant memory. "Make no mistake, revenue growth is back," Cramer concluded.

Lightning Round

In the Lightning Round, Cramer was bullish on Endocyte ( ECYT), Leggett & Platt ( LEG), SolarWinds ( SWI) and Las Vegas Sands ( LVS).

Cramer was bearish on Bank of America ( BAC), Arch Coal ( ACI), Vodafone Group ( VOD), KIT Digital ( KITD), Wynn Resorts ( WYNN) and American Capital Strategies ( ACAS).

--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 AAPL, JPM.

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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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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