Cramer's 'Mad Money' Recap: Cheap Stocks Still Out There

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NEW YORK ( TheStreet) -- Investors who think there are no cheap stocks left to buy in this red-hot market rally need to think again, Jim Cramer told "Mad Money" viewers Wednesday.

Cramer said that yes, this rally is happening at record speed and defying all the skeptics, but that doesn't mean there's nothing left to buy.

Cramer offered up Starwood Hotels & Resorts ( HOT) as one stock worth buying. He said this hotel chain has some of the best brands in the world and could easier split itself into two and unlock a ton of value for shareholders.

KeyCorp ( KEY) is another name that caught Cramer's eye. He said this stock, which he owns for his charitable trust, Action Alerts PLUS, has a clean balance sheet and trades at a discount from where it should. Over the past five years this stock had slid 71%, he noted, despite the fact the company is in far better shape now than it was in 2008.

Also making Cramer's list of cheap stocks: AFC Enterprices ( AFCE), owner of the Popeye's restaurant chain. Can Popeye's follow the same trajectory as Domino's Pizza ( DPZ)? Cramer thinks so.

Two others on Cramer's hot list were American Realty Capital ( ARCP), a REIT with a 6.4% yield, and LinnCo ( LNCO), which is a holding company for its parent Linn Energy ( LINE).

As an honorary mention, Cramer also suggested Celgene ( CELG), a biotech all-star that continues to march higher.

Executive Decision: Moshe Gavrielov

In the "Executive Decision" segment, Cramer sat down with Moshe Gavrielov, president and CEO of Xilinx ( XLNX), a semiconductor company that's forecasting growth between 8% and 12% this year.

Gavrielov said he's very confident about his company's product portfolio as Xilinx continues to be the leader in communications chips built on the new 28 nanometer platform. He said that as more and more smartphones and tablets enter the market, there is a greater and greater need for communication chips to power them.

When asked if the federal cuts known as the sequester will affect Xilinx' sales to the U.S. government, Gavrielov noted the sequester mainly deals with personnel and not as much with equipment. He said there will still be a need to upgrade older equipment, which will keep sales strong for the company.

In a market where the best technology wins, Cramer asked Gavrielov if he's worried about competition. Gavrielov responded that innovation is always the focus at Xilinx and the company has the patent portfolio to prove it. He also said there's a good likelihood of dividend increases in the future.

Cramer continued his recommendation of Xilinx.

On the Road

With travel picking up, it's time to own an online travel agency, Cramer told viewers. With so many to choose from, Cramer said he's sticking with best of breed, and that's Priceline.com ( PCLN).

Shares of Priceline may be lagging the group so far this year, but Cramer said he's not concerned with the short term because the company is a proven long-term performer and has the most exposure to international bookings. Priceline derives a full 75% of its revenue from outside the U.S., with a huge business in Europe and an expanding one in both Asia and Latin America, two of the hottest markets.

Priceline is also buying rival Kayak ( KYAK), giving the company even more growth potential. When it last reported, Priceline delivered a 27-cent-a-share earnings beat on a 20% rise in revenue. Cramer said that while Expedia ( EXPE) also has high growth, it's no match for what Priceline can deliver.

Priceline is also not an expensive stock, noted Cramer, trading at just 18.7 times earning with a 19.4% growth rate. Expedia trades at almost the same multiple, he added, even though it lags in growth. The same applies to Trip Advisor ( TRIP), another popular name that's not growing as quickly as Priceline.

Cramer said he's a fan of HomeAway ( AWAY), but that stock has risen too high and needs to cool off before he can consider investing.

Lightning Round

In the Lightning Round, Cramer was bullish on Checkpoint Systems ( CKP), Fortune Brands Home & Security ( FBHS) and Valero Energy ( VLO).

Cramer was bearish on Questcor Pharmaceuticals ( QCOR), ArcelorMittal ( MT), Federal-Mogul ( FDML) and Magnum Hunter Resources ( MHR).

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: Walt Disney ( DIS), CSX ( CSX), Apple ( AAPL), Parker-Hannifin ( PH) and Verizon ( VZ).

Cramer said "Bingo!" because this portfolio is diversified.

The second portfolio's top holdings included: LyondellBasell ( LYB), Cheniere Energy Partners ( CQP), Medical Properties Trust ( MPW), Prospect Capital ( PSEC) and CenterPoint Energy ( CNP).

Cramer said he also blessed this portfolio as properly diversified.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer once again cautioned investors to be wary of any negative commentators they may see on TV or read in the papers. He said that all too often these money managers are not fully invested in the markets and are either short the markets or need them lower so they can buy in and catch up to their rivals.

Cramer said these naysayers often have many "fears" about the market, including the Federal Reserve, the sequester, China, Europe and countless others. These are the same managers who feared the fiscal cliff in December, he added, and missed a spectacular rally.

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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 AAPL and KEY.

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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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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