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NEW YORK ( TheStreet) -- The crisis in Cyprus is just another in a long line of European panics that likely won't amount to anything, Jim Cramer reassured his "Mad Money" TV show viewers Monday. He said the bears may once again be predicting the end of the world as we know it, but nothing could be further from the truth. Cramer said the banking system in Cyprus is simply comical -- the regulators, or lack thereof, allowed their banks to get into such a mess in the first place. This comedy of errors is only outdone by the regulators' clueless actions in trying to remedy the situation. But as bad as things are in the troubled island nation, there were no big runs on the banks, as many bears were calling for over the weekend. Nor were there major market selloffs. Cramer said those who insist "it could happen here" clearly have no idea how well regulated the U.S. banking system is post-2008. "There was no panic on the floor of the
Rates Charting HigherThe charts are speaking to Cramer, and he said they're screaming that higher interest rates are coming in 2013 thanks to a stronger economy. Cramer explained that as he studied the charts of hundreds of stocks over the weekend, he kept seeing the same pattern over and over again -- parabolic moves to the upside. That's why he hasn't been recommending buying many stocks over the past few days. Parabolic moves leave little room for error, and investors who buy into these moves are often hurt and hurt badly. But upon further review, Cramer said he noticed the highest concentration of parabolic charts were in the banking and insurance sectors, meaning that investors are betting big that these companies will be making a lot more money in 2013 as interest rates rise and the spread between what banks charge for loans and give to depositors widens.
The opposite move can be seen in the consumer staple stocks like Clorox ( CLX), Procter & Gamble ( PG) and Pepsico ( PEP), said Cramer, as investors are pulling their money out of these defensive names and placing bets on more economically sensitive names. The economy is clearly doing better and investors know it, Cramer concluded. That means it will only be a matter a time before the Federal Reserve knows it, too, and does something about it.
Banking on OligopoliesMonopolies may not be the best things for consumers, but for investors there's nothing like limited competition to pad your portfolio, Cramer told viewers. In the absence of a good monopoly, however, there's another great way investors can make money and that's with a good oligopoly, where handful of companies control an entire industry. That's why Cramer kicked off a week-long series of oligopolies investors can bank on. First up, the airlines, a group to which Cramer has only just recently warmed. For decade, the airlines simply were not investable, Cramer told viewers, because competition was killing off the carriers one by one. But thanks to several high-profile mergers and bankruptcies, competition is all but a thing of the past and airlines are once again in a position to make money. When it comes to the airlines, it's all about capacity, said Cramer, and with fewer airlines in the sky, planes carry more passengers and make more money with every flight. He said US Airways ( LCC) remains his favorite among the major airlines but Delta Airlines ( DAL) and United Continental ( UAL) are both in excellent shape. Cramer again recommended regional carrier Spirit Airlines ( SAVE) as another great way to get into the airlines after decades to turning up our noses.
Lightning RoundIn the Lightning Round, Cramer was bullish on Interpublic Group of Companies ( IPG) and Intel ( INTC). Cramer was bearish on WebMD Health ( WBMD), Westport Innovations ( WPRT), Johnson & Johnson ( JNJ), Angie's List ( ANGI) and Calgon Carbon ( CCC).
Hain Celestial vs. Annie'sIn the battle for natural and organic food supremacy, there are many contenders, but only one winner, Cramer told viewers, as he examined the stocks of Hain Celestial ( HAIN) and Annie's ( BNNY) to see which one makes the grade.
Cramer noted that while the markets have soared, both Hain and Annie's have stumbled of late. Annie's was saddled with allegations of metal filings in their pizzas on Jan. 22, while Hain suffered from allegations of pesticides in its teas on Feb. 21. While both allegations were later found to be false, the damage done to both stocks still lingers. While both are good companies, said Cramer, he's going with Hain as the way to play organic foods, as that stock is only up 5% for the year compared to 19% for Annie's. He noted that Annie's trades at a full 39 times earnings with a 22% growth rate, not leaving much upside as his rule is to never pay a multiple that's more than twice the growth rate for a stock. Hain, however, trades at just under 20 times earnings and it has a growth rate of 17%, giving the stock much more room to run. Cramer said there's also a lot to like about Hain other than its valuation. The company has aggressive expansion plans, both here and abroad, and is taking market share in just about every category in which it competes. Given that investors can pick up shares of Hain on the cheap, Cramer said he's a buyer.