Cramer's 'Mad Money' Recap: A Safer Market Than You Think

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NEW YORK ( TheStreet) -- "This market is safer than you think," an energetic Jim Cramer announced to "Mad Money" TV show viewers Wednesday.

That is, if you're investing in the right stocks in the right way.

Cramer responded to his critics who claim he's merely a stock picker who's leading uninformed investors to slaughter. Nothing could be further from the truth, he rebutted, saying the mantra of "Mad Money" has always been to invest in stocks, not trade them, selling into strength and buying more on the way down.

Lately, Cramer has preached the value of high-yielding domestic dividend stocks, noting that a diversified portfolio of high yielders is about as good as it gets in the current investing climate.

But there's also another contingent of stocks, noted Cramer, one that he's been remiss in mentioning recently -- his "three horsemen of tech."

These market generals include Apple ( AAPL), a stock he owns for his charitable trust, Action Alerts PLUS , Google ( GOOG) and ( AMZN).

Cramer said the markets have been obsessed with all of the losers in tech, mainly Facebook ( FB), Groupon ( GRPN) and Zynga ( ZNGA), while his "generals" are out-innovating and outpacing the entire market.

Cramer said Apple, Google and Amazon are used and loved by everyone, yet their stocks are still cheaper than Coca-Cola ( KO) and Pepsico ( PEP). These stocks have momentum and earnings power, he added, which is why they should be a part of every diversified portfolio.

Executive Decision

In the "Executive Decision" segment, Cramer spoke with David Demers, founder and CEO of Westport Innovations ( WPRT), a stock that's delivered a 213% gain since Cramer first got behind the company in January 2010.

Demers responded to Cramer's criticism that the natural gas companies aren't moving fast enough to make a difference in America by saying the U.S. is on the verge of a revolution in transportation, and companies like Westport are moving "as fast as they can." He said that while the U.S. isn't investing in natural gas as heavily as the Chinese, there are still a lot of opportunities right here at home.

"We need to get off oil," Demers said, citing a recent study that not only looked at the direct impact of converting trucks to natural gas, but also the possibility of reinvigorating the entire economy around transportation and creating tons of new jobs by creating a new domestic infrastructure.

Demers said there in enthusiasm for natural gas in everything from locomotives to passenger cars, noting that Ford Motor ( F) now has the capacity to build up to 20,000 F-250 and F-350 natural gas trucks just as soon as consumers want them. He said that Clean Energy Fuels ( CLNE) has already proven that if you build a natural gas filling station the trucks show up, so we just need to make the investments.

When asked about federal regulations that prohibit a natural gas tender to follow a locomotive, Demers said that, in reality, the regulations don't say that you can't have a natural gas tender because no one has ever tried it before. He said there will certainly need to be new regulations written, but he's confident that those regulations can and will be written.

Cramer said Westport remains a speculative stock in his eyes. He said the true believers can buy in now, but the skeptics should probably wait for a pullback in the share price.

Time to Pounce

When a high-quality stock gets pounded because of a secondary offering, it's time to pounce, Cramer told viewers, as he recommended MarkWest Energy Partners ( MWE), a natural gas gathering and processing master limited partnership with a 6.3% yield.

Cramer explained that MarkWest got "marked down" in a big way Tuesday when the company issued an additional six million shares at $50.72 a share, it's third such offering this year. Shares of the company promptly shed 4.3% on the news and now trade below the offering price.

So why is Cramer recommending investors buy in when all three of MarkWest's secondaries have been flops? Because this time, it's different, he explained.

Throughout most of 2012 the price of oil has been falling, explained Cramer, taking shares of MarkWest along for the ride since the company specializes in natural gas liquids. But now that oil prices are heading higher, the price of MarkWest will be as well.

Kinder Morgan Energy Partners ( KMP) issued three secondaries last year, said Cramer, all during times when oil was rising and all three made money. Secondaries at Enterprise Product Partners ( EPD) also confirmed this theory. Even MarkWest's offerings last year made money.

That's why Cramer said that this time investors need to buy into the weakness because oil will be continuing its march higher.

Lightning Round

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

DirecTV ( DTV): "It is a terrific stock. I like the cable companies like Comcast ( CMCSA) too, they have great growth."

Exxon Mobil ( XOM): "It's at a 52-week high but it's not my favorite in the group. They have not delivered on their promise for natural gas. "

Halcon Resources ( HK): "It's been a rough patch. I've been sticking with the dividend payers but that's a good spec."

Am I Diversified?

In the "Am I Diversified" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets. The first portfolio included: Wynn Resorts ( WYNN), Las Vegas Sands ( LVS), Abercrombie & Fitch ( ANF), ConocoPhillips ( COP) and Nike ( NKE).

Cramer said that obviously this portfolio cannot have both Las Vegas Sands and Wynn, nor Abercrombie, a teen apparel play, and Nike, an athletic apparel player. He advised selling Wynn and Abercrombie and adding Celgene ( CELG) and Walt Disney ( DIS).

The second portfolio's top holdings included: Apple ( AAPL), Macy's ( M), Bank of America ( BAC), American International Group ( AIG) and Scott's Miracle-Gro ( SMG).

Cramer said this portfolio was properly diversified.

The third portfolio had: Google ( GOOG), Boeing ( BA), Starbucks ( SBUX), J.P. Morgan Chase ( JPM) and Home Depot ( HD) as its top five stocks.

Cramer said this portfolio was "rocking."

No Huddle Offense

In his "No Huddle Offense" segment, Cramer offered his opinion as to why so many retailers are seeing such strong results.

If you listen to the naysayers, the strength in retail is nothing more than the stronger players taking share from the weaker ones. But where are those weaker ones, asked Cramer? Only JCPenney ( JCP) is losing share and that business isn't nearly big enough to move the needle.

Other naysayers point to drawdowns in inventory thanks to heavy discounting. But Cramer noted that VF Corp ( VFC), Ralph Lauren ( RL) and PVH ( PVH) are all shipping more, not less, into the retail channel.

Still others believe that consumers are merely trading up from the dollar stores. But that's also not the case, with all of the dollar stores also reporting great numbers.

So what's really going on? Cramer said it's simple: Consumers are feeling richer now that their homes aren't losing money and their 401(k)s are starting to recover. The wealth effect, he said, changes the game for everyone and is too compelling to ignore.

--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 positions in AAPL, AIG, BA, DIS, JPM and NKE.

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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