Cramer's 'Mad Money' Recap: Seeing the Market From Both Sides

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NEW YORK ( TheStreet) -- Jim Cramer told "Mad Money" viewers Thursday that it's time to take a cue from singer Joni Mitchell and look at stocks from "Both Sides Now."

The bears are focused on fiscal fears and negative headlines, he said, and the heavy negatives could turn the most optimistic of bulls into bears.

The bulls see that Spain started another round of fiscal austerity despite the riots. That's what the stronger countries need to see, he said.

The Chinese market rallied hard last night and that could be a sign we could get more stimulus from everyone's favorite Communist country, Cramer said.

Even General Electric ( GE) and DuPont ( DD) said the industrial business is getting better in the People's Republic, he said. GE says we may be too gloomy about China.

A rally in the U.S. markets is not predicated on anything here, it's all about China and Europe, Cramer said. In order for this move upward to continue, we need an end-game deal in Europe and a real stimulus in China. And we need them now, Cramer emphasized.

If we don't get real positive news from Europe and China, then we're not done going down, Cramer said. But, if we do get positive news from those huge trading partners, that will offset our own government crisis.

If that happens, he added, we will be able to hang in there, if not go higher.

Executive Decision

In the "Executive Decision" segment, Cramer spoke with OraSure Technologies ( OSUR) President and CEO Doug Michels about the company's new FDA-approved over-the-counter saliva-based test for HIV, which will be available in stores next month.

OraSure is rolling out an advertising and awareness campaign through retail stores, and on digital media, he said. The company has lined up celebrities to draw more attention to the launch next month.

Michels said there are 1.2 million people in the country who are HIV-infected, but 20% to 25% of them are unaware they are infected. The unaware and infected are responsible for 50% to 70% of the forward transmission of the disease.

OraSure last year acquired a Canadian company that is big in oral collection, he added. Its DNA testing is used by members of Ancestry.com to get better information about their genealogy. OraSure also has an oral test for hepatitis-C.

Do the homework before you take a shot with the company, Cramer advised.

Scaling the Wall

Investors pin a lot of market momentum on the Chinese, Cramer said, returning to the People's Republic and its effect on the U.S. market.

There's been a lot of speculation as to whether China will pull the trigger on some form of economic stimulus. "I think we should temper our expectations about when and how large" it will be, if it comes at all, Cramer said

But China does matter for some companies. For instance, China is awash in aluminum, Cramer said, so he advises against buying Alcoa ( AA) at this point.

China also dumps steel, he said. But buying companies that make the ingredients for steel, such as Vale ( VALE), part of his charitable trust, Action Alerts PLUS , would be a good idea.

China also needs copper, and that means Freeport-McMoran ( FCX). For machinery you must have Caterpillar ( CAT), despite what it has warned about China's growth, and Cummins ( CMI), he said.

Lightning Round

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

Pan American Silver ( PAAS): They are one of the best, Cramer said, but he prefers the iShares Silver Trust ( SLV) better. Better still, he said, he likes gold.

Onyx Pharmaceuticals ( ONXX): "This is really terrific. It has many irons in the fire. I want to buy, buy, buy."

Exelon ( EXC): "I happen to think that the stock at this level is good," he said, and it is inexpensive.

Universal Display ( PANL): "Not a fave," he said. "Infrastructure is so competitive. I am wary of it."

Hain Celestial ( HAIN): While shares are down a little, "sometimes a decline is a buyable decline," he said, adding the fundamentals are still great and the stock is a buy, buy, buy.

SandRidge Energy ( SD) "It's a speculative play. You need oil to go dramatically higher if they're going to go higher."

Riverbed Technology ( RVBD): "Everybody wants to be in it but its a telco equipment stock and I am not going to touch telco equipment."

Altria ( MO). While not politically correct, he said MO this is "a good yield play if you want some income."

Saving Companies Money

In the second "Executive Decision" segment, Cramer spoke with Bryan Martin, chairman and CEO of 8X8 ( EGHT), to learn more about the company Cramer said on a past show is highly speculative, one, because it's so small, and it can only be risky if you chase it.

8x8 saves small businesses money by bundling communications through a cloud based service. Martin said the technology company started in the home phone market and expanded into the business market, which has been extremely profitable and fast-growing.

Martin said the average new customer last year bought 14 new phone lines from him, so it's a tiny end of the small business market. Most of these companies still have AT&T ( T) or Verizon ( VZ) as their long distance provider.

Windstream ( WIN) is a competitor, Cramer noted.

Martin said his company brings in a turn-key solution: the phones, the service. "We become your monthly long-distance provider and we have other features, too," he added. The capabilities are up even though the price goes down.

8x8 has grown to 30,000 customers in the last four years with a compound annual rate of 21%. Martin said his company was issued its 83rd patent Thursday. The communications industry, especially in voice, is a patent minefield. Martin said his company has its own mini portfolio of patents.

Cramer noted that the small business market is not growing in the country.

Martin said that even though the access line market is declining, the penetration of 8x8's technology is already at 8.2%. "We think the business market is going to go the same path as the home market which is at 30%," he said.

It's always a compelling story, Cramer said. "I always like to admit when I've been too quick to say be careful," he said, but the stock is "still speculative because of the size."

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: Lululemon ( LULU), Apple ( AAPL), Cornerstone OnDemand ( CSOD), SunTrust Banks ( STI) and eBay ( EBAY).

Cramer said sell Cornerstone and own Bristol-Myers ( BMY). "So they'll have a power company, an Internet company that does banking, a bank, and they would have tech," he said.

The second portfolio included: Intel ( INTC), Google ( GOOG), Chipotle ( CMG), GT Advanced Technologies ( GTAT) and Gilead Sciences ( GILD).

This is not a diversified portfolio, Cramer said. It has too much high risk in terms of stocks. "You have an internet company, you've got a tech company, you've got a similar tech company," he said. "Keep Intel. You've got a biotech company and you have a food company. I need to see some diversified industrials. Please cut the risk profile."

The third portfolio included Apple ( APPL), Intuitive Surgical ( ISRG), PespiCo ( PEP), Johnson & Johnson ( JNJ) and Walt Disney ( DIS).

"I'm not going to say it's not diversified," Cramer said..

--By Anthony Buccino for TheStreet.com

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, DIS, EBAY, STI and VALE.

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