Cramer's 'Mad Money' Recap: Putting Europe Into Perspective

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NEW YORK ( TheStreet) -- Let's keep one eye on Europe but the other on America, Jim Cramer told "Mad Money" viewers Monday as he tried to put the European crisis into perspective for investors.

Cramer said the notion that "all eyes must be on Europe" is flawed as it ignores the opportunities here in America that are being created by Europe. "We're blessed with two eyes," said Cramer, "Let's use both of them."

With a single eye on Europe, Cramer said it would have been easy for investors to ascertain they should avoid any company that does business on that continent. That eye would have also shown them to steer clear of the financials and the commodities as well.

But with the other eye focused on America, Cramer said one would have realized those stocks only account for two-thirds of the Dow Jones Industrial Average, leaving the remaining third as investable. What stocks are left in that remaining third? Stocks like Home Depot ( HD) and Wal-Mart ( WMT), two American retailers whose stocks have risen 52% and 29%, respectively.

Also on the list: Verizon ( VZ) and AT&T ( T), up 23% and 16%, respectively, with the additional benefit of great dividend yields. Intel ( INTC) and Microsoft ( MSFT) are also great performers, noted Cramer, as is Walt Disney ( DIS), which makes its money mainly from American theme parks, movies and TV networks.

So yes, keep one eye on Europe, concluded Cramer, but the other must be focused on America or opportunities will pass you by.

Turnaround Story

In a topsy-turvy market, investors need themes they can count on, Cramer told viewers, and one of those themes is the low cost of natural gas. While low gas prices may be causing havoc for the producers of the commodity, those who use it are flourishing, said Cramer, which is why a chemical company like Celanese ( CE) is now a buy.

Shares of Celanese have fallen nearly 27% from their recent highs in February, making the company too cheap to ignore, said Cramer. He explained that the company makes building-block chemicals for other industries, chemicals that include resins, filtration products, emulsions and plastics. What all these chemicals have in common, however, is that they use a ton of natural gas to manufacture.

Celanese uses so much natural gas that a $1 move in the price of the commodity translates to between 15 cents and 20 cents a share to the company's bottom line. But Celanese isn't content just making money from the low price of natural gas, it's also investing in a new facility in Texas that will come online in 2015 and add even more to the bottom line.

Cramer said Celanese is also a turnaround story, as the company missed earnings by 5 cents a share last quarter but now has a new CEO with the street cred to get the job done. Nearly 30% of Celanese' profits stem from Asia, said Cramer, and the company is now selling for just seven times earnings with a 10% growth rate. A bargain by any metric.

Both Sides of the Latte

What should investors do with shares of Starbucks ( SBUX) after the company received an upgrade from Oppenheimer & Co. on the same day it received a downgrade from UBS? Cramer reminded viewers that when analysts disagree, investors win as they get to see both sides of the coin.

While both firms still rate Starbucks a buy, the bear case said Starbucks shares are likely to trade sideways, thanks in part to a slowdown in domestic sales. Indeed, the company did shave 1 cent a share off its earnings estimates as part of a recent acquisition, but the firm also noted that Starbucks' European business will be a hurdle.

But the bull case said deceleration of Starbucks' earnings are unlikely as the fundamentals remain strong and the company has a slew of new products debuting this summer. In addition to new drinks, Starbucks is also taking share in the single-serve coffee market, will be entering the lucrative energy drink market as well as stepping up its expansion in China.

Cramer said Oppenheimer has a proven track record as it recommended selling McDonald's ( MCD), a stock which he owns for his charitable trust, Action Alerts PLUS, at its highs a few months back. Cramer said with CEO Howard Schultz still at the helm of Starbucks, it's hard to bet against this winning company with a winning analyst behind it.

Starbucks is now nine points off its highs and trades at just 23 times earnings with a 20% growth rate. That's a deal that's just too hard to pass up, concluded Cramer.

Lightning Round

Here's what Cramer had to say about callers' stocks during the "Lightning Round":

Dendreon ( DNDN): "No, too risky. It's not selling as well as it should. I'll send you to Johnson & Johnson ( JNJ)."

Pitney Bowes ( PBI): "I have to be worried about their dividend. It yields 10% and that's a warning sign."

Crown Castle ( CCI): "They are real good. So is American Tower ( AMT). I'm with them all the way."

Boeing ( BA): "I think Boeing is terrific. BA is a buy, buy, buy."

InterDigital Communications ( IDCC): "I want you to take the money and run. "

Tibco Software ( TIBX): "It's been acting badly, but I think its got momentum under $30. After that, I'm tired of getting beaten up."

Executive Decision

With natural gas at record lows, Cramer sat down with Frank Semple, chairman, president and CEO of MarkWest Energy ( MWE), in the "Executive Decision" segment to find out how this natural gas gathering, transportation and processing master limited partnership is fairing. MarkWest currently pays a 6.3% yield.

Semple said it's been a ugly few weeks for the oil and gas MLPs as the decline in the price of oil has hit the sector hard. He said the uncertainty in global markets has been rough for the group and MarkWest needs to do a better job of explaining that it hedges its downside and the vast majority of its margins stem from fee-based operations.

Semple said the "conventional wisdom" says that natural gas liquids like butane and ethane must be going down along with the price of natural gas, but that notion is false. He said the U.S. continues to produce a ton of ethane, for example, and that gas is still in demand. "The long-term future for ethane is bright," he concluded.

When asked about MarkWest's investments in the Utica shale region of Ohio, Semple said that estimates are for natural gas demand to increase by 17% by 2020, which makes that region the right place to be. He said power generation and heating will remain the primary drivers for natural gas but transportation demand is also slowly building, it's just taking awhile.

Cramer continued his recommendation of MarkWest and its great yield.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer sounded off on the sharp decline in trading volumes. Does it even matter if fewer and fewer people are trading stocks, he asked? "It depends on where you sit," he concluded.

Cramer said there's no doubt the "flash crash" and the initial public offering of Facebook ( FB) have greatly contributed to the disintegration of stocks as an asset class. It's no wonder many investors now think of stocks as simply a playground for high-frequency traders. Individuals feel it's reckless to own stocks.

Making matters worse, those who should care -- the brokers and exchanges -- are doing nothing to reverse the trends. There's simply no urgency to restore faith in the markets, said Cramer.

But in the end, "I don't care," said Cramer. Trading volumes don't matter as long as investors are able to buy stocks that can appreciate and make them money.

--Written by Scott Rutt in Washington, D.C.

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At the time of publication, Cramer's Action Alerts PLUS had positions in BA, DIS and MCD.

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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