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NEW YORK ( TheStreet) -- Don't focus on Italy, focus on the best way to make money, Jim Cramer told "Mad Money" TV show viewers Tuesday. He said the best way to make money in the markets is not to fret over Italy but to focus on everything that's working right here in America. Cramer said the days when Italy's economy could drag the U.S. down with it are over. The U.S. is stronger, he said, while Italy, and indeed most of Europe, has only slid further into irrelevancy. Meanwhile, here in the U.S. we have an unbelievable housing recovery underway, one that's led Home Depot ( HD) to post what Cramer called the single best earnings so far in 2013. Home Depot, a stock Cramer owns for his charitable trust,
Executive DecisionIn the "Executive Decision" segment, Cramer spoke with Chip Johnson, CEO of Carrizo Oil & Gas ( CRZO), a stock that's fallen 20% since Cramer last spoke with Johnson in March 2012. The company just posted a 19-cent-a-share earnings beat. Johnson said Carrizo is still building value for its shareholders. He said the company's proven reserves are now valued at $1.4 billion. Adding on unproven assets, that figure is likely north of $3.6 billion. Unlike many drillers that have been slow to transition away from natural gas and into the more lucrative oil markets, Carrizo has been able to move quickly, said Johnson, which is only helping production increase ahead of schedule.
When asked about where Carrizo's oil goes after it's drilled, Johnson said his company sells its oil to companies, which haul it to the Gulf coast via truck, rail or barge. There, he said, it is sold at the higher Brent crude prices and usually refined into diesel fuel and sold into the Latin American marke,t which offers the highest margins for the refiners. When asked about margins, Johnson explained Carrizo is essentially producing oil for a scant $30 a barrel and selling it for $100 a barrel, affording it a tremendous gross margin at today's prices. Cramer said Carrizo has everything he's looking for including great assets, production growth and a solid plan for the future.
Off The ChartsIn the "Off The Charts" segment, Cramer went head to head with colleague Caroline Boroden over the direction of the markets and of three stocks in particular. Boroden's predictions of the markets have been spot-on in recent months, as she's called the S&P 500's June retracement, its September top and subsequent lows in November. So which stocks are Boroden focusing on now? Cramer said they are Amazon.com ( AMZN), Michael Kors ( KORS) and Schlumberger ( SLB), another stock Cramer owns for Action Alerts PLUS. Boroden noted that after topping out in January, shares of Amazon have been sliding lower. But she sees support between $243 and $245 a a share and also between $236 and $239. She said that either range is buyable once the stock has tested and held either level. A similar pattern exists for Kors, with supports $57, $53 and $49 a share, and Schlumberger, with supports between $72 and $74 a share and also at $70 a share. In both cases, Boroden suggested waiting to confirm the stocks have held those levels before buying. Cramer said he once again agrees with Boroden on these three stocks, but rather than buying in at certain technical levels he prefers using wide scales and buying more on weakness.
Lightning RoundIn the Lightning Round, Cramer was bullish on HomeStreet ( HMST), Royal Dutch Shell ( RDS.A) and McDonald's ( MCD).
Cramer was bearish on Alcoa ( AA).