Cramer's 'Mad Money' Recap: Bright Spots

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NEW YORK ( TheStreet) -- With the markets geared for disappointment, most investors are expecting the worst, Jim Cramer told "Mad Money" viewers Wednesday.

But that doesn't mean that there aren't bright spots in the market, he continued, stocks like Stryker ( SYK), Seagate ( STX) and even Alcoa ( AA), all of which were all able to surprise Wall Street to the upside.

That's why Cramer continued his week-long series of macro themes that will trump no matter what negativity 2013 may throw at us. Tonight's themes included aerospace and China.

Despite a string of problems with Boeing's ( BA) 787 Dreamliner this week, Cramer said the need for new planes is still in full effect. Alcoa mentioned during its conference call that there are still some 8,900 planes on order because for the first time in many years airlines have the financing available to buy them.

That's why Cramer said he's buying more United Technologies ( UTX), a stock he owns for his charitable trust, Action Alerts PLUS, but he also likes Honeywell ( HON).

Then there's China, a country that's accelerating its expansion after a year of focusing on the wrong metric of interest rates. Cramer said that Joy Global ( JOY) remains a popular China play, but he's still a fan of the iShares FTSE China 25 ( FXI) ETF as it offers a basket of Chinese stocks, making it easier to invest.

Cramer said either of these two themes would make excellent investments on the next big down day for the markets.

Executive Decision

In the "Executive Decision" segment, Cramer spoke with Dr. Ron Cohen, president and CEO of Acorda Therapeutics ( ACOR), a biotech firm whose drug Ampyra is helping those with muscular sclerosis regain their mobility. Shares of Acorda are up 15% since Cramer last spoke with Cohen in July.

Cohen said that so far about 70,000 patients with MS have tried Ampyra and are having great success, but there are still an estimated 130,000 more who have walking disabilities that can benefit from the drug. Acorda is also in clinical trials testing Ampyra for other indications including cerebral palsy and chronic stroke.

Cohen explained that over the long-term, treating MS and other conditions with drugs like Ampyra is far more cost-effective that just using physical therapy alone. He said nearly one-half of all stroke victims have reduced mobility of some kind and Ampyra can make a lasting difference in those patients' lives.

Acorda is also working on a new rescue medication for those with epilepsy. The new treatment will be a nasal spray, which is far more advantageous than current treatments, which must be taken rectally. Acorda is hoping for approval of the treatment in 2014.

Cramer continued his recommendation of Acorda.

Charles River's Win-Win

In his second "Executive Decision" segment, Cramer spoke with James Foster, president and CEO of Charles River Laboratories ( CRL), a company that allows biotech firms to outsource their basic research functions and make critical go, no-go decisions on the new drugs they're developing.

Foster said the biotech industry is at an inflection point because many drugs are coming off patent and companies are scrambling to replace the lost revenue with new drugs. He said for the next two to three years Charles River should be able to continue taking market share as its labs are designed for efficiency and can provide research functions faster and better than the biotechs can by themselves.

Foster said outsourcing to Charles River is a win-win for both firms, as his company is able to provide a very low price point as well as a fast turnaround on the services offered.

When asked whether the company will continue to buy back its own stock, Foster said last year the stock was severely undervalued and the company took advantage of the weakness to buy back shares. Currently, he said, his company is working on two accretive acquisitions, and continues to evaluate the most effective use of cash on hand.

Cramer said investors should take a second look at this very well-run company.

Lightning Round

In the Lightning Round, Cramer was bullish on Verizon ( VZ), Rentech Nitrogen ( RNF), SPDR Gold Shares ( GLD), Visa ( V), Millennial Media ( MM) and CYS Investments ( CYS).

Cramer was bearish on Goldcorp ( GG), Yandex ( YNDX), Nokia ( NOK), KiOR ( KIOR), BankUnited ( BKU) and Ultra Petroleum ( UPL).

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: Apple ( AAPL), Mercadolibre ( MELI), Visa ( V), Ford ( F) and Lululemon Athletica ( LULU).

Cramer said this portfolio was properly diversified.

The second portfolio's top holdings included: Boardwalk Pipeline ( BWP), CapitalOne ( COF), John Deere ( DE), Facebook ( FB) and USG ( USG).

Cramer also blessed this portfolio as diversified.

The third portfolio had: Homestreet Bank ( HMST), Goldman Sachs ( GS), Ford ( F), Cisco ( CSCO) and Eaton ( ETN) as its top five stocks.

Cramer said Homestreet and Goldman were too similar and he'd sell Homestreet in favor of a biotech stock.

The fourth portfolio's top stocks were: Walt Disney ( DIS), IBM ( IBM), McDonald's ( MCD), Microsoft ( MSFT) and Citigroup ( C).

Cramer advised selling Microsoft and adding in Pfizer ( PFE).

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on Alcoa's ( AA) upbeat outlook for accelerating worldwide economic growth in 2013. How is that possible? he asked.

In a word, China, a country that's expected to see a dramatic rise to 11% GDP growth. Alcoa also cited Russia and others as bright spots around the globe. The company sees strength in construction, autos and aerospace as major drivers for the company.

Cramer said he's waited for years to be more positive about Alcoa and now might be the inflection point that he's been awaiting.

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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 positions in AAPL, ETN, FXI, GS, IBM, UTX.

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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