Cramer's 'Mad Money' Recap: Anger Gets You Nowhere

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NEW YORK ( TheStreet) -- Your anger with the markets won't make you any money, Jim Cramer told his "Mad Money" viewers Tuesday. Cramer said that as long as there's money to be made in stocks, he won't stop telling people how and where to find the winners.

Cramer said he understands investors' anger with the markets. There seems to be rampant crime without punishment wherever you look. From the J.P. Morgan Chase ( JPM) trading losses to the Libor rate-fixing scheme to countless others, Cramer said investing in stocks often seems like betting on a game where you don't even know the rules.

But before investors throw up their hands and give up, Cramer reminded them of Apple ( AAPL), a stock he owns for his charitable trust, Action Alerts PLUS , and one that's up 50% for the year.

There's also Gap Stores ( GPS), up 33% and Wal-Mart ( WMT), up 25%. Even lowly, boring Verizon ( VZ) has managed to reward investors with a 14% gain so far this year.

Cramer said these are the reasons why investors, including the little guys, need to stay in the game. If may seem helpless, he said, when the markets seem to hinge on the words of every politician and central banker instead of on earnings or anything resembling common sense. But the bull markets are indeed out there for those who care to look.

Cramer told viewers that they need to stop chasing the so-called "hot" stocks like Research In Motion ( RIMM), Groupon ( GRPN), Zynga ( ZNGA) and Facebook ( FB), all of which have been over-hyped losers, and invest in the any of the names above, all of which have rewarded shareholders nine times better than Teasuries or bank CDs.

Executive Decision

In the "Executive Decision" segment, Cramer sat down with Matt Ouimet, president and CEO of Cedar Fair ( FUN), the amusement park operator whose shares have become a regular on the 52-week high list. Cedar Fair has returned 99%, including reinvested dividends, since Cramer first recommended the stock last August and the company currently sports a 5% dividend yield.

Ouimet said Cedar Fair is still early in its plans of making its good parks even better and he's confident the company can deliver on it's proposed $2 per share dividend next year. He said his company has 11 parks, all in America and has a simple business model.

When asked about current market conditions, Ouimet said there are extreme weather events every year and they don't have a sizable impact on the company's profitability. A decline in gasoline prices, however, does make a difference as Mom and Dad are likely to spend a little more at the park if the drive to and from costs a little less.

Ouimet said Cedar Fair is always looking for acquisitions, but noted that great opportunities are harder to find. There have been no new parks built in the past three decades mainly because of the costs involved and the fact that the market has been absorbed by existing parks.

Finally, when asked about the current season, Ouimet mentioned that season ticket sales are up over last year and many of the company's parks are at record levels of ticket sales. He said driving to a local amusement park is far simpler than traveling by air, and that trend won't be changing anytime soon.

Cramer continued his recommendation of Cedar Fair saying the company has a lot more upside to come.

Beyond the Business Section

Sometimes the best investment ideas don't come from the business section, Cramer told viewers. Take Alkermes ( ALKS), a drug company whose drug Vivitrol is changing the way prescription drug abuse is treated in our country.

Citing a recent article in the New York Times, prescription drug abuse is a problem that needs to "urgently be solved," as some 54% of all overdose deaths are now attributed to painkillers and not traditional illegal narcotics. Enter Vivitrol, a drug that blocks the receptors in the brain that respond to opiates, rendering patients unable to get high. Better still, Vivitrol is only needed once a month.

Cramer said this drug is a huge leap forward from traditional treatments that merely replace dangerous opiates with less dangerous ones and require daily doses. Of the estimated 1.6 million people addicted to opiates, nearly 75% of them will seek treatment eventually, making the market opportunity for Alkermes a sizable one.

While critics cite the high cost of the drug as a major drawback, recent state government reports has found that when considering the total cost of treating an addicted patient, the cost of Vivitrol actually saves money.

Cramer said that Alkermes is simply not getting enough credit for Vivitrol, but the company is also not a one-trick pony. He said the company has partnerships with companies including Bristol Meyers-Squibb ( BMY) for some of its other drugs and has other a sizable drug pipeline.

Trading at just 17 times earnings with a 25% drug rate, Cramer called shares of Alkermes "insanely cheap."

Lightening Round

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

Edwards Lifesciences ( EW): "This is the solution for people who don't want open heart surgery. I'm sticking with this one."

MarkWest Energy Partners ( MWE): "Everyone has given up on this one but here they come. Enterprise Products Partners ( EPD) at a 52-week high."

VirnetX ( VHC): "I am not against it, I'm for it."

Exelixis ( EXEL): "This is one of my favorite biotech spec plays. "

Alaska Air Group ( ALK): "I used to like that one but now I'm going with US Airways Group ( LCC)."

Kinross Gold ( KGC): "I'm not liking the gold stocks, especially that one. I like the SPDR Gold Shares ( GLD)."

Skyworks Solutions ( SWKS): "I would ring the register. The tech group is not so great here. "

Polycom ( PLCM): "Listen, the videoconferencing business is horrible. I'd get out." Facebook: "I'm hearing the mobile ad scene is bad. I worry about it and I'm scared of it."

ConocoPhillips ( COP): "I think we should pull the trigger. I like the upside."

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Ed Ponsi over the charts of restaurant stocks to see which ones are rising to the top of the heap. According to Ponsi, those stocks include McDonald's ( MCD), Dunkin Brands ( DNKN) and Domino's Pizza ( DPZ).

Ponsi said that McDonald's has been out of favor for months, but this latest pullback is a buyable one. The charts are displaying an inverted head-and-shoulder formation, a powerfully bottoming indicator, and with shares now trading above the neckline, Ponsi felt shares could see a 6% gain from current levels.

Dunkin Brands was also displaying a powerful pattern, only this time it was the stock's 50-day moving average. Ponsi noted that since its initial public offering last year, Dunkin's 50-day moving average has been a floor of support for the stock, making it a buy, buy, buy.

Finally, there's Domino's, a stock that's displayed a cup-and-handle pattern, a third bullish indicator.

Cramer said that for once the fundamentals and the technicals agree. These three stocks may not do wonders for your waistline, but they'll be great for your portfolio.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on the surprise appointment of Marissa Mayer as CEO of the ailing Yahoo! ( YHOO).

Cramer said that while it's far too soon to call Mayer Yahoo!'s savior, she does have an admirable track record at Google ( GOOG) of both making things simple and usable. Yahoo has a ton of catching up to do, said Cramer, but Mayer may be the one who can make the need changes and monetize the company's great portfolio of web properties.

What Yahoo needs most, said Cramer, is the stability of a CEO who will last. While the company still has no mobile, social or cloud strategy, Mayer may be a winner for the company.

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

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To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, BMY, JPM and MCD.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

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 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, 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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