Cramer's 'Mad Money' Recap: Look to Housing and Insurance

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NEW YORK ( TheStreet) -- Housing and insurance are two more themes that will be working in 2013, Jim Cramer told "Mad Money" viewers Tuesday in the next installment in his weeklong series on what investors should be buying on any Washington-induced market weakness.

Cramer said the housing market remains huge, and any company that sells into it should be yielding big returns in 2013. Of course that means the home builders, but they've already run a lot, said Cramer, which is why he'd look into the building-materials and home-furnishing companies.

Everything from Pier 1 Imports ( PIR) to Owens Corning ( OC) to Whirlpool ( WHR) to Sherwin Williams ( SHW) should be participating in the housing recovery, said Cramer.

That also means stocks like Weyerhaeuser ( WY), a stock Cramer owns for his charitable trust, Action Alerts PLUS, and Vulcan Materials ( VMC) as well.

Cramer's next big theme for 2013: insurance. Yes, it's boring, he said, but given how beaten down this sector has been, there will be only upside as all of their beleaguered investments finally start bearing fruit. Cramer said he's a fan of Travellers ( TRV), along with American International Group ( AIG), another Action Alerts PLUS name.

Executive Decision

In the "Executive Decision" segment, Cramer spoke with Dr. Leonard Schleifer, president and CEO of Regeneron Pharmaceuticals ( REGN), one of the many companies presenting at the annual JPMorgan Chase ( JPM) health-care conference this week.

Schleifer said Regeneron is celebrating its 25th anniversary this year and has always been based on doing good science that focuses on what patients need. That's why the company is working is many different areas from cholesterol to eye care.

When asked about the perceived weakness in the quarterly results, Schleifer said some analysts were expecting strong sales after a competitor ran into a formulation problem with a competing drug, but that scenario never materialized. He said Regeneron continues to grow at 50% a year and is expecting to have a phenomenal 2013.

When asked whether his company's new cholesterol-lowering drugs could become bigger than its current Eylea eye-care treatment, Schleifer said he believes that it can. He said REGN72 is a totally new class of cholesterol drug and one that's showing a lot of promise in lowering levels by 60% to 70% with few side effects.

Cramer said Regeneron remains one of his favorite biotech stocks.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Tim Collins over the chart of Pfizer ( PFE), a boring Big Pharma name that might just be getting a little more exciting in 2013.

According to Collins' research, the daily chart of Pfizer is displaying the bullish reverse head-and-shoulders pattern, with the left shoulder in October, the head in November and the right shoulder in December. Collins said based on this pattern, Pfizer could see a 6% move in the short term and more over the next six months. This trend was confirmed by the TRIX momentum indicator.

Pfizer's weekly chart also was bullish, noted Collins, with the stock trading sideways during the first half of 2012, only to enter a bullish channel during the back half of 2012. Currently the stock is consolidating again and Collins thinks the uptrend is not far away.

Cramer said he's already on record as saying Pfizer could repeat its 15% gain from last year. He said that's big news for a sleepy stock like Pfizer that lets invests sleep enough and offers a big dividend yield to boot.

Lightning Round

In the Lightning Round, Cramer was bullish on Lumber Liquidators ( LL), Home Depot ( HD), Alpha Natural Resources ( ANR), Invesco Mortgage Capital ( IVR)and Annaly Capital ( NLY).

Cramer was bearish on Exelon ( EXC), Lowe's ( LOW)and Questcor Pharmaceuticals ( QCOR).

Healthy Biogen

In his second "Executive Decision" segment, Cramer spoke with Dr. George Scangos, CEO of Biogen Idec ( BIIB), another biotech company presenting this week at JPMorgan's annual health-care conference.

Scangos started off by updating investors on his company's treatments for muscular sclerosis. He said Biogen's two current injectable treatments are doing very well and his company expects approval of BG12, a new oral medication for the disease, possibly as early as March of this year.

When asked whether the new pill could cannibalize the injectable treatments, Scangos said many patients are happy with their current treatments and have their disease under control, so there will be little incentive to switch.

Scangos continued that all three of Biogen's MS drugs treat different segments of the population and he's delighted to have three options for patients. He was also upbeat about his company's two new hemophilia drugs, which will allow patients to inject themselves less frequently. He said those drugs will provide a great service to patients.

Finally, when asked about the disappointing results for Biogen's ALS drug, results that forced the company to stop development, Scangos said Biogen has had three clinical trial successes and one failure last year. While it's very disappointing to see a drug fail, the company remains committed to doing more work and returning to trials with a new drug for ALS.

Cramer said Biogen is another great biotech firm worthy of continued investment.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer stood up in defense of gold, a commodity he said is finally providing the long-awaited pullback that everyone has been expecting.

Cramer said there are dozens of so-called reasons to not like gold, but the precious metal has delivered gain after gain.

Yes, gold has been stalled of late, but with so many countries printing money and sending their currencies lower, it's only a matter of time before gold marches higher.

He said the simple economics of gold say it's getting harder, and more costly, to find gold, which can only mean good things for the SPDR Gold Shares ( GLD) going forward.

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-- 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 AIG and WY.

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."

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