Cramer's 'Mad Money' Recap: Keep an Eye on Gold, New Homes

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NEW YORK ( TheStreet) -- Today's selloff hasn't changed the market's tune, Jim Cramer told "Mad Money" TV show viewers Thursday.

Cramer said there are two shortages that define the market: a shortage of new homes and a gold shortage, and both of those trends remain intact.

Today we saw a big gain in existing home values, said Cramer, news that confirms the strong earnings from Toll Brothers ( TOL). Housing in on the mend in the U.S., even in hard-hit areas like Arizona and New Mexico.

Why do home values matter to the markets? Cramer said it's because approximately 10 million homeowners are currently underwater on their mortgages. Rising home values can break that cycle, something that already appears to be happening at companies like Sherwin-Williams ( SHW) and Williams-Sonoma ( WSM). When homeowners can put money into their homes and get more money out of them, that's exactly what they do.

Housing is a big driver of the U.S. economy, said Cramer, so as long as the housing trend continues to improve, so, too, will the economy.

So what about gold? A rally in gold usually means investors are panicking, but in this case it means the Europeans are worried about their currencies, something that Cramer hopes will spur Germany into action to help its ailing neighbors.

With the Currency Shares Euro Trust ( FXE) also on the rise, Cramer said Germany likely won't have a choice but to help, which also would be a boon for the markets.

Keep your eye on housing and gold, said Cramer, and investors will have their fingers on the pulse of the market.

Executive Decision

In the "Executive Decision" segment, Cramer spoke with Marc Benioff, chairman and CEO of ( CRM). Cramer wanted an update on where the company is heading.

Benioff said that Salesforce continues to win major deals at the expense of traditional enterprise software platforms, a trend that led to the company's 34% growth during the quarter. He said the company continues to make major investments into its platforms and remains focused on revenue growth.

When asked to respond to the bears who have been calling for the company to focus on profits instead of revenue, Benioff said enterprise software is in the middle of a revolution, and it would be foolish to give up market share in order to focus on other metrics. He said the bears have been wrong in their research for quite some time when it comes to

Turning to the hot-button issue of social media, Benioff said that in his mind, social media is the future, which is why the company has made social media acquisitions and plans to roll out new social products at its next developer conference.

Cramer said that continues to deliver, despite the bears predicting otherwise.

Sprint on the Line

In his second "Executive Decision" segment, Cramer welcomed Dan Hesse, CEO of Sprint ( S), the nation's third-largest wireless carrier. Shares of Sprint have more than doubled since Cramer last spoke with Hesse in May.

Hesse said the first phase of Sprint's remarkable turnaround was focusing on customer service. The company has gone from last to first over the past four years and Sprint's learned that it's actually cheaper to offer better service, as the company is now spending half of what it was, he said.

Some of the other highlights of Sprint's turnaround plan included getting the iPhone, paring the company's two networks down to one and investing in LTE 4G, the next generation of high-speed wireless technology.

Hesse admitted that Sprint was late to the game with its 4G investment, but waiting allowed the company to add a high quality push-to-talk feature to its offerings that now gives them a competitive advantage. He said Sprint has been able to recapture 64% of the customers that were using its older Nextel network.

When asked about the iPhone, Hesse noted that carrying the iPhone has improved Sprint's overall satisfaction rate and the company's sales are ahead of plan so far. More important, over 40% of all iPhone customers are new to Sprint.

Cramer said investors may have missed Sprint at $2 a share, but that doesn't mean they've missed this company's terrific rebirth.

Lightening Round

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

American International Group ( AIG): "I sold a little bit for my charitable trust. I still like it. Wait for a pullback."

Mercadolibre ( MELI): "I am not keen on this one. I'd rather see you own eBay ( EBAY)."

Forest Laboratories ( FRX): "I say buy, buy, buy."

Altria ( MO): "That stock is coming in. I am recommending this one."

Healthy Earnings for Hain

In a third "Executive Decision" segment, Cramer checked in with Irvin Simon, chairman, president and CEO of Hain Celestial Group ( HAIN), a stock that shot up 19% Thursday on the company's earnings release and the news it's acquiring more brands for its healthy eating portfolio.

Simon said the transition to eating healthier is happening right now. He said just a few years ago Hain's brands were only sold at Whole Foods ( WFM), but now they can be found in abundance at Wal-Mart ( WMT), Kroger ( KR) and Target ( TGT). Simon noted that even ( AMZN) is now one of the company's top five customers.

So what's the goal at Hain? Simon said it is to become the largest natural organic food company. That's why announcements like those by Johnson & Johnson ( JNJ) that its baby shampoo contains formaldehyde is both alarming and a blessing for Hain. "Good health care starts with eating healthy," said Simon, who also noted that Hain makes organic baby shampoo and other baby items.

Hain currently has 11 brands growing by double digits, said Simon, and several others growing in the high single digits.

Cramer continued his recommendation of Hain Celestial Group.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer offered his take on the horrific earnings from once-mighty tech giants Hewlett-Packard ( HPQ) and Dell ( DELL). He likened them to Digital Equipment and Data General, the two tech titans of old, both now gone.

"Oh, how the mighty have fallen," said Cramer, as he recalled how Digital Equipment and Data General once ruled the tech world, only to disappear as newer, cheaper hardware made their offerings obsolete. Those new offerings were PCs, those made by International Business Machines ( IBM), HP and upstart Dell to be specific.

But IBM made the smart move, said Cramer, divesting itself of the ailing PC business eight years ago. HP and Dell continued to hang on, and now we see the consequences. It's somewhat ironic that the remnants of Digital Equipment were sold to Compaq, now subsumed into HP, Cramer concluded. Rest in peace.

--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 had a position in AIG and EBAY.

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."

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