The weekly chart of the SPDR Gold Shares also confirmed this analysis because Collins noted a failed cup-and-handle formation, which is a bearish indicator. Collins felt GLD would remain rangebound between $150 and $175 a share, giving investors no reason to be long or short the commodity. Cramer said while he continues to think gold should remain a part of every portfolio, he agreed with Collins that there's no reason to add to a position, and it makes sense to remain cautious on gold. He said the SPDR Gold Shares ETF has held up far better than any of the gold mining stocks, which is why he continues to recommend that ETF over any other gold investment.
Making Money After the Breakup
Breaking up may be easy for companies to do, Cramer reminded viewers, but the real money seems to be made after the breakup has occurred. That's certainly been the case with Tyco International ( TYC), he noted. The company's spinoffs of Covidian ( COV), TE Connectivity ( TEL) and most recently ADT ( ADT) have been off to the races. ADT came public in October 2012, said Cramer, and since then has risen 30%, a move that he's caught for his charitable trust, Action Alerts PLUS . But with the housing recovery powering ever higher, is the move in ADT over? Not by a long shot. ADT currently has 6.5 million customers for its safety and security services that include everything from fire and carbon monoxide monitoring to home and business security products. A full 90% of the company's revenue are recurring and ADT enjoys 25% market share, making it the largest provider in its markets. Cramer said ADT would make an excellent takeover for a larger company, but even without a takeover the company is still attractive because it's expanding its services and always offers the best products and pricing around. ADT is paying down debt and returning cash to shareholders with a 1% dividend yield and a stock buyback program that was recently accelerated by management. Cramer noted that while ADT has already run up big, given the company's potential for growth this is one name that's just getting started.
In the Lightning Round, Cramer was bullish on Trulia ( TRLA), Realogy Holdings ( RLGY), Banco Bilbao Vizcaya Argentaria ( BBVA), Green Mountain Coffee Roasters ( GMCR), Annaly Capital ( NLY), Cisco Systems ( CSCO) and American Tower ( AMT). Cramer was bearish on Banco Latinoamericano ( BLX) and Imax ( IMAX).
In the "Executive Decision" segment, Cramer spoke with Nick Akins, president and CEO of American Electric Power ( AEP), a utility at the heart of North America's oil and natural gas renaissance, but also one that's transforming itself to an environment where coal is no longer king. Akins said that during 2012, American Electric Power was focused on transition and removing risk from its business. As the economy stabilizes in 2013, his company is now poised for growth and prosperity. American Electric offers a 4.1% dividend yield and Akins said he's confident that yield will only go higher as the company continues to grow. Akins said that with so much growth in the Eagle Ford and Utica shale regions of the country, American Electric will be well-positioned for future growth and its customers will also benefit from the transition away from coal towards cleaner-burning natural gas. The company will also continue to invest another $4 billion to $5 billion into retrofitting and cleaning its coal-fired facilities as well, dramatically lowering emissions. Cramer said American Electric Power is a utility that's doing a lot of things right, which is why it should be a part of investors' portfolios.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer told viewers not to be squeamish about buying a stock on weakness. Take Google ( GOOG), a stock that everyone wants to be in as it powers over $800 a share, said Cramer. But where were all those investors back in October when the stock fell $60 a share on a weak quarter? Google didn't have many believers back then, he recalled, despite the company continuing to deliver a ton of growth and profit potential. Google was able to turn itself around since October, Cramer concluded, but only those with the guts to buy on the pullback were able to truly profit from the move. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.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