Cramer's 'Mad Money' Recap: Seller's Remorse

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NEW YORK ( TheStreet) -- The markets are developing a bad case of seller's remorse, Jim Cramer told "Mad Money" viewers Monday. He said that after seeing stocks they've sold only go higher, eventually investors just don't feel like selling anymore.

Somewhere the market's psychology shifted, said Cramer, and many sellers now find themselves kicking themselves for selling instead of counting their winnings. Cramer said he's been bit several times at his charitable trust, Action Alerts PLUS, by stocks he sold for very good reasons, only to watch them tick higher day after day.

Case in point, Boeing ( BA). Cramer said he sold Boeing amid the last round of Dreamliner worries at $72 a share. While the stock did drop $1 afterwards, it turned and rallied to $82 despite the Dreamliner's new battery woes.

Cramer also noted McDonald's ( MCD) as another botched sale. He said his sale at $85 a share was totally wrong because that stock is now near $98. The same holds true for Wells Fargo ( WFC) and Southwest Energy ( SWN). Surely natural gas would rally, thought Cramer, and it did -- right after he sold.

Cramer said when seller's remorse begins to kick in on a wide scale, eventually sellers get tired of getting burned and stop selling, which then becomes a self-fulfilling prophecy as the supply or shares dwindles and prices tick even higher. That's where the markets are now, Cramer concluded, leaving his charitable trust looking for new entry points to get back in.

Hot Dealmakers

There's a bull market in private equity dealmaking, Cramer told viewers, and that means investors need to take a second look at asset managers that have exposure to this red-hot sector. He said that of the group, BlackRock ( BLK), another Action Alerts PLUS holding, sits at the top of his list.

Cramer explained BlackRock doesn't have the most private equity exposure, but it is a well-diversified company that happens to dominate the exchange-traded fund market, another sector that has been on fire of late. BlackRock currently controls 40% of the ETF business. With stocks on the rise, ETF popularity with investors is only likely to climb. BlackRock also sports a 2.7% dividend yield.

Outside of BlackRock, Cramer said he's also bullish on Blackstone ( BX). That stock has rallied 30% since the fiscal cliff debacle and the company's IPO business is also accelerating.

Getting honorable mentions were shares of KKR ( KKR), with its stable 6.7% yield; Carlyle Group ( CG), with a 6.8% yield and Apollo Global Management ( APO), with its hefty 7.9% yield.

Cramer said all of these firms will give investors exposure to not only the private equity market, but also to all of the other hot places to be when stock market dealmaking and investing heats up.

PetSmart Unleashed

There are few things people love more than their pets, Cramer told viewers, which is why the bull market in pet stocks is still alive and well and why PetSmart ( PETM), a long-time Cramer fave, remains the best way to play the move.

Cramer noted shares of PetSmart are up 365% since he first got behind the name in March 2009, but they've also stumbled recently because the company's CEO resigned and its three-cent-a-share earnings beat came from lower tax rates and not a boost in revenue.

But Cramer placed at least some of the blame for disappointment on the analyst community, which failed to lower numbers on PetSmart in the face of Hurricane Sandy and fiscal cliff jitters.

Cramer said PetSmart may has stumbled but it's far from down for the count. He said that people cut spending on many things but not their pets. With pet adoptions on the rise, there's still plenty of room for growth for this chain. While the company's executed 15% growth is less than its previous 20% growth, its shares have fallen to just 14 times earnings, which makes them cheap, said Cramer.

PetSmart is also innovating with such items as branded pet apparel, all while its kennel services unit has evolved into four-star pet hotels. Put it all together and the time is right to get back into PetSmart, Cramer said.

Lightning Round

In the Lightning Round, Cramer was bullish on Archer Daniels Midland ( ADM).

Cramer was bearish on Intuitive Surgical ( ISRG), Pitney Bowes ( PBI) and Groupon ( GRPN).

Executive Decision: Sam Thomas

In the "Executive Decision" segment, Cramer sat down with Sam Thomas, president and CEO of Chart Industries ( GTLS), a stock that's up 113% since Cramer first recommended it in February 2011.

Thomas said natural gas has ballooned into a global story, with some regions of the world moving faster than others. He said in China, for instance, the market is being driven by the fuel's lower costs but also its environmental benefits. Meanwhile, here in the U.S., costs play a factor but so, too, does the desire for energy independence. He said the industry has now moved beyond the tipping point where big investments are being made and will be seen to completion.

When asked whether Washington will ever support natural gas, Thomas said that it likely won't, but that's a good thing. He said pure economics are driving natural gas at the moment and that's the best way to get things done over the long term.

Thomas added that the U.S can win from natural gas whether it uses the fuel for surface vehicles like locomotives and cars, chooses to export the fuel to other areas of the world or simply uses it as a feedstock to become the low-cost leader in chemicals and plastics. No matter which way we go, America wins, which is why Chart continues to look for new employees right here in America.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer said that while the markets may hate Best Buy ( BBY) and Ross Stores ( ROST), now is the time to buy on weakness for these two stocks.

Cramer said that shares of Best Buy should never have fallen as far as they did given that the company is the last man standing in the electronics world. Meanwhile, Ross remains a terrific regional to national story.

Investors always say they want a bargain, Cramer concluded, and the markets have delivered.

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

At the time of publication, Cramer's Action Alerts PLUS had a position in BLK.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 is related to the specific opinions expressed by him on "Mad Money."

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