Cramer's 'Mad Money' Recap: Shift Your Perspective

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NEW YORK ( TheStreet) -- We are not the world, so stop investing like it, Jim Cramer commanded his "Mad Money" TV show viewers Wednesday.

Cramer said Europe's woes are likely to cause a weak open for our stock markets Thursday, but investors need to be smart and use that weakness to buy, buy, buy.

There's been a shift in our markets, said Cramer, and smart investors are no longer using weakness in Europe as a reason to sell, they're using it as a reason to buy. That makes sense because problems with banks in Cyprus or elections in Italy have absolutely nothing to so with sales at retailers such as Ross Stores ( ROST), Bed Bath & Beyond ( BBBY) or Costco ( COST), nor the U.S. housing or oil booms.

Cramer said if the markets open higher tomorrow, he'd be a seller and buy back in at lower levels. If the markets open flat, he'd look for specific opportunities and buy cautiously. But if the markets open lower, which they likely will, Cramer said there are a few stocks he'd be very interested in.

First off, Cramer said he'd be a buyer of the Pinnacle Foods' IPO because a lower open would likely give that food stock a 4% yield. Cramer said he'd also be a buyer of Costco and General Mills ( GIS), two great companies with strong earnings. Finally, Cramer said he likes mortgage insurer Radian Group ( RDN).

So if things get ugly tomorrow, Cramer concluded, it's time to get buying.

Another Breakthrough

For today's "Breakthrough Medical Stock," Cramer highlighted Biogen Idec ( BIIB), a stock that's already at new 52-week highs and also one Cramer said could roar much higher.

Shares of Biogen are already up 56% since Cramer first got behind the stock just over a year ago, but the stock still trades at a mere 19 times earnings despite its 18.3% growth rate. That pegs Biogen at the same multiple as Bristol-Myers Squibb ( BMY), said Cramer, and Biogen deserves a much higher multiple than Bristol.

Biogen's main focus has been on treating multiple sclerosis, a chronic condition that affects some 350,000 patients in the U.S. and millions around the globe. While Biogen has already been successful with its drug Avonex, Cramer said the company is also at the forefront of next-generation therapies including a longer-lasting version of Avonex as well as Tecfidera, which could be game changer, and Tysabri, Biogen's new MS drug that already has garnered 10% market share.

Beyond its MS pipeline, Cramer said Biogen also has other drugs in the works that are not factored into its share price, including those to treat lymphoma and hemophilia. Given the company's superb growth rate and its cheap share price, Cramer said he's still very bullish on Biogen.

Executive Decision: Manny Chirico

In the "Executive Decision" segment, Cramer once again sat down with Manny Chirico, CEO of PVH Corp ( PVH), a stock that's given up all of its gains for the year as investors have voiced concerns about the company's Warnaco acquisition announced last October.

Chirico explained that unlike PVH's acquisition of the Tommy Hilfiger brand, the Warnaco acquisition is more complicated and on a much larger, global scale. As such, Chirico said that 2013 will be a transition year for PVH as it makes investments in the now-unified Calvin Klein brand so that 2014 and beyond will be much stronger.

Chirico also noted that jeans tend to sell in cycles and have been under pressure for the past two years. That makes the Warnaco acquisition happening at the perfect time, as things will only improve from here.

When asked about sales in Europe, Chirico said that overall comps are up 5% to 6%, which weakness in Italy and Spain being offset by strength in other countries like France and the U.K. In the U.S., he said, sales were strong in January and February, but stalled in March as continued cold weather has made it hard to jump-start much of its spring apparel. "It's hard to sell shorts when it's 20 degrees outside," Chirico explained.

Finally, when asked about sales at the embattled JC Penney ( JCP), Chirico said that PVH's shirt and tie business has been under pressure as sales have been declining overall at Penney, but his company's sportswear business has seen a lot of strength and he feels JC Penney management is starting to take the necessary steps to turn things around.

Cramer said that while PVH may be sluggish in the first half of 2013, he's a believer in the company for late-2013 and beyond.

Lightning Round

In the Lightning Round, Cramer was bullish on Intel ( INTC), Chevron ( CVX), Goldman Sachs ( GS) and CVS Caremark ( CVS).

Cramer was bearish on Garmin ( GRMN), Advanced Micro Devices ( AMD), Amazon.com ( AMZN), Baidu.com ( BIDU) and Flagstar Bancorp ( FBC).

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: Apple ( AAPL), SPDR Gold Shares ( GLD), Berkshire Hathaway ( BRK.B), Eaton ( ETN) and Allergan ( AGN).

Cramer said this portfolio was perfectly diversified.

The second portfolio's top holdings included: Duke Energy ( DUK), Annaly Capital ( NLY), Ford ( F), Linn Energy ( LINE) and Boardwalk Pipeline ( BWP).

Cramer said this portfolio has too much energy and needs to sell Boardwalk and add a health-care name like Bristol-Myers Squibb.

The third portfolio had: ARM Holdings ( ARMH), CVS Caremark, ConEd ( ED), Phillip Morris ( PM) and iShares Silver Trust ( SLV) as its top five stocks.

Cramer said he was a fan of this portfolio and no changes need to be made.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer answered this question: Why are investors now willing to pay 18 times earnings for General Mills ( GIS), when historically they've been willing to pay just 15 times earnings.

Cramer said the multiple expansion in stocks like General Mills makes perfect sense for three reasons. First, the overall market multiple has been on the rise, so it only makes sense that General Mills' multiple would follow suit.

Second, Cramer said General Mills is a terrific dividend payer, doubling its payout in just the last year years.

Third, the tax rates on dividends that were expected to rise didn't, meaning that this bountiful yield remains far superior to that of Treasuries.

Add all these together and it's easy to see why this terrific company with great management and a solid balance sheet continues to trend higher, Cramer said.

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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 BMY, CVS, ETN, GS, LINE.

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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