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NEW YORK ( TheStreet) -- Are the politicians in Washington moving toward a deal to avoid the fiscal cliff? If so, that would be good for business and terrific for the stock market, Jim Cramer told "Mad Money" viewers Tuesday. That may just be why the market was soaring again today -- the time to get into stocks will be before, not after, a deal is announced. Cramer said the rhetoric in Washington seems to be softening lately, and today's rally foreshadows just what could happen if a deal is reached. Some of his most important indicators, such as the transports, are breaking out of their trading range, signaling the economy may be slowly coming back to life. Nothing tells you how well the economy is like planes, trains and trucks, noted Cramer. Then there are the financials, another beaten-down sector that is coming back to life. Cramer said that he still thinks stocks including Goldman Sachs ( GS), Citigroup ( C) and Wells Fargo ( WFC), a stock he owns for his charitable trust,
Off the ChartsIn the "Off The Charts" segment, Cramer went head to head with colleague Bob Lang over the chart of Goldman Sachs to see if the strong rally in that stock can continue. Looking at a two-year weekly chart, Lang noted Goldman is still well off its 2011 highs and is completing a "W" bottom formation, which is a bullish sign. He said that if Goldman can stay stay above the current resistance level then its off to $140 a share and $170 a share after that. Turning to a shorter-term daily chart, Lang also noted Goldman has been building a base since June but is now above all of its major moving averages. There has been strong volume on the up days and the MACD indicator is also showing a bullish crossover. Cramer said the fundamentals agree with the technical analysis. He said Goldman trades at just 0.9 times book value, a historically low valuation for such a well-known investment bank. The company has also been buying back stock, reducing its share count by 10% in recent years. Given how the world's economies are on the mend, things are looking up at Goldman, Cramer concluded.
Problems With CatamaranBulls make money, bears make money but pigs get slaughtered, Cramer reminded viewers, as he followed up on SXC Health Solutions, a pharmacy benefit manager he recommended about a year ago. A lot has changed in the year since he made that recommendation, said Cramer, which is why we must revisit this stock. Cramer said the first thing investors may notice is that SXC Health Solutions no longer exists. The company did a $4.4 billion merger in July and rebranded itself as Catamaran ( CTRX). Shares of Catamaran, however, are up 74% since last December. Catamaran is still a great story, said Cramer. The new company has great scale to compete with the likes of Express Scripts ( ESRX). There is also a wave of patented drug expirations underway, leaving a wave of generic competion for Catamaran to capitalize on. But there is a problem, noted Cramer, and that's Catamaran's largest customer, HealthSpring ( HS), which accounts for 10% of the company's earnings. HealthSpring has a contract with Catamaran through 2014, but the status of that contract will be known in January. Since HealthSpring was itself acquired, it may not be renewing its contract. Cramer said Catamaran can eventually replace these lost earnings with new business, but that won't stop anaylsts from sounding the alarm in the coming weeks -- which is why investors need to sell ahead of that pending news. "Don't give up your gains," Cramer concluded.
Lightning RoundIn the Lightning Round, Cramer was bullish on Nucor ( NUE), Honeywell ( HON) and Bristol-Myers Squibb ( BMY). Cramer was bearish on United States Steel ( X), Cliffs Natural Resources ( CLF), HCA Holdings ( HCA), Groupon ( GRPN) and SandRidge Permian Trust ( PER).
Digging Into Mine SafetyThere's always money to be made speculating on takeovers, Cramer told viewers, but only if it's done wisely. That means never speculating on a company with declining fundamentals. Fortunately, in the case of Mine Safety Appliances ( MSA), makers of safety equipment for miners, oil and gas workers, firemen and those in the construction industry, business is booming. Cramer said Mine Safety is a classic case of a stock that's unknown and under-covered by Wall Street. He said the company delivered a miss when it last reported, but that was only due to weakness in Europe, which accounts for 24% of the company's sales. As Europe continues to stabilize, Europe will become less of a factor, he said.
So who would be a buyer of Mine Safety? Cramer said both Honeywell and DuPont ( DD) have long histories of making profitable acquisitions in this space, and either could be an acquirer. Mine Safety also sports a respectable 2.7% dividend yield.