Cramer's 'Mad Money' Recap: Looking on the Bright Side

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NEW YORK ( TheStreet) -- This market spends too much time worrying about what could go wrong and not enough time reflecting on what didn't go wrong, Jim Cramer told his "Mad Money" TV show viewers Wednesday after a see-saw day on Wall Street.

Cramer said the market has been brimming with worries this year, but surprisingly, none of them came true.

Cramer said today's announcement that General Motors ( GM) is buying $5.5 billion worth of its shares from the U.S. Treasury is one such example. He said just a few years ago everyone was worried GM would be out of business and sending one million workers home. But today, the company managed to find $5.5 billion to repay a large chunk of its bailout, albeit at a loss for taxpayers, and make itself whole again.

The markets tend to ignore the fact that the U.S. is producing more oil than it has in 17 years, noted Cramer, paving the way for continental energy independence and hopefully eventually, U.S. energy independence. The markets also gloss over the fact that corporate balance sheets are flush with cash and the U.S. consumer is spending again.

We entered 2012 worried about Europe, Cramer reminded viewers, but the European "kick the can" strategy is working, giving those countries time to work out their problems. Meanwhile China, another big market worry, is also on the road to recovery.

Whether it was "shadow inventory" in the housing market or expected corporate bankruptcies, a whole host of potential worries never materialized, said Cramer, leaving us with at least a glimmer of hope that a fiscal cliff induced market collapse probably won't either.

An Underperformer

Over the past year, Cramer's focused a lot on companies that are breaking themselves up in order to unlock value. In fact, he's featured 13 such stories, from Kraft Foods ( KFT) to Covidian ( COV) to McGraw-Hill ( MHP).

Out of those 13 there's only been one that's underperformed the markets -- Hillshire Brands ( HSH).

Cramer said Hillshire shares have fallen 1% since its spinoff from Sara Lee ( SLE), during a time when the markets have risen 3%. He said the story at Hillshire is not a bad one, but clearly the company will require more time to execute its turnaround than he initially anticipated.

Hillshire, which owns such iconic brands like Jimmy Dean and Ball Park Franks, is reinvesting in its businesses in order to drive future costs, said Cramer, and is working on everything from cutting costs to innovating with new products and more appealing packaging. The company is also selling non-core assets in order to focus its efforts on just a few key areas.

While many investors worry about commodity cost inflation, Cramer said he's not one of them because Hillshire's expected growth will more than offset any price increases. He said the company reported a great quarter and only gave tepid guidance in order to create the classic under-promise and over-deliver situation.

Breaking up is not only easy to do, it's profitable, too, Cramer concluded, but sometimes it takes a little longer than you might expect.

Executive Decision

In the "Executive Decision" segment, Cramer sat down with Walter Robb, co-CEO of Whole Foods ( WFM), a stock that's up 40% since Cramer last spoke with Robb a year ago.

Robb responded to tweets from viewers asking when they'll have a Whole Foods in their town by saying, "We're working on it." He said Whole Foods is expanding into markets such as Boise, Idaho, and Wichita, Kansas, and will be accelerating its growth into 2014. The company has signed 74 new leases already, Robb noted, with more to come.

When asked about the company's experiments with such things as in-store organic nail salons, Robb said Whole Foods is about a lifestyle and an experience, which is why it experiments with things like in-store pubs, which are now in 55 locations, and the nail salon concept. People just want to come in and relax after work, said Robb.

Turning to private-label products, Robb explained that Whole Foods seeks to strike a balance between brand-name products, local brands and private-label goods. He said there's always a balance between quality and value.

Robb also commented that the markets appreciate Whole Foods' culture and the spirit of the company, which is why it receives a valuation similar to that of Starbucks ( SBUX) and Chipotle Mexican Grill ( CMG), two other aspirational brands.

Cramer said that Whole Foods remains a great story.

Lightning Round

In the Lightning Round, Cramer was bullish on Urban Outfitters ( URBN), Linn Energy ( LINE), LinnCo ( LNCO), ConAgra Foods ( CAG), PPG Industries ( PPG), Mondelez International ( MDLZ), American Axle ( AXL) and TRANSDIGM GRP INC ( TDG).

Cramer was bearish on Men's Wearhouse ( MW) and Georgia Gulf ( GGC).

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: Silver Wheaton ( SLW), QuestCor ( QCOR), Priceline.com ( PCLN), Fastenal ( FAST) and 8x8 ( EGHT).

Cramer said this portfolio has good diversification.

The second portfolio's top holdings included: Heckman ( HEK), Cisco ( CSCO), Annaly Capital ( NLY), Pfizer ( PFE) and AT&T ( T).

Cramer also blessed this portfolio as diversified.

The third portfolio had: Apple ( AAPL), Exxon Mobil ( XOM), Abbott Laboratories ( ABT), Pfizer ( PFE) and Johnson & Johnson ( JNJ) as its top five stocks.

Cramer said that Abbott, J&J and Pfizer can't all live in the same portfolio and he advised selling J&J and Pfizer and adding General Electric ( GE) and Mondelez International.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on the terrific quarter posted by Oracle ( ORCL) Tuesday night. He said there were record-breaking numbers abound on the company's conference call because every area of the globe, including the U.S. and Europe, were performing well.

Cramer said Oracle expressed confidence on its call he's not seen in awhile. The company even scoffed at the notion the fiscal cliff is crimping IT spending. Even Oracle's acquisition of Sun Microsystems, a deal that was panned at the time, was noted as being one of the best acquisitions the company has ever made.

Cramer gave a tip of the proverbial hat to the entire team at Oracle for a job well done as it continues to take market share and bring corporate America into the cloud-based IT future.

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To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC
At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, ABT, GE, MDLZ and SBUX.

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