Cramer's 'Mad Money' Recap: Haves and Have-Nots

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.


NEW YORK ( TheStreet) -- The market's divided between the haves and the have-nots, Jim Cramer told "Mad Money" viewers Wednesday. With the distance between the two groups growing, it's only a matter of time before the have-nots become cheap enough to buy.

Cramer explained that among the companies that can do no wrong are those with declining costs in environments where they charge more. He said that drug stocks are among this group, as are consumer stocks including Coca-Cola ( KO).

Everything from the price of plastics and natural gas, to oil and gasoline to labor is falling in America, which means that all of these savings flow right to the bottom line. Even appliance maker Whirlpool ( WHR) is seeing relief in the way of decreased competition, making it among the must-have stocks.

On the have-not side of the equation are the banks, said Cramer, a group that continues to battle lawsuits and fight the Federal Reserve with low interest rates. Even if a bank does post a good quarter, he said, it's quickly dismissed by investors.

Technology is also among the hated stocks, noted Cramer, with stocks like Intel ( INTC) drawing yawns from investors and, of course, Apple ( AAPL), a stock Cramer owns for his charitable trust, Action Alerts PLUS, continuing its freefall.

Oil and oil service stocks are also in the doldrums, said Cramer, as are companies even remotely related to mining or minerals. It's as if no one uses aluminum or copper anymore, he concluded, even though that's hardly the case. That's why investors need to stick with the "haves" for the moment, as the "have-nots" have not yet hit the bottom.

Executive Decision: David Demshur

In the "Executive Decision" segment, Cramer once again checked in with David Demshur, chairman, president and CEO of Core Laboratories ( CLB), which today delivered a seven-cent-a-share earnings beat of an 11% rise in revenue. Shares of Core Labs are up 109% since Cramer first got behind the company in February 2010 and 11% since he last spoke with Demshur this past January.

Demshur said Core Labs was able to deliver another great quarter for shareholders and is seeing strength in all of its divisions. He noted that in its production enhancement division, for example, engineers are hard at work developing technology that will breathe new life into older oil fields.

He explained that natural gas is often what drives oil to the surface, and in some fields the oil in undersaturated with gas. Thus, Core Labs is developing gas mixtures that can be injected into wells to potentially unlock some five to six billion barrels of thus unrecoverable reserves.

Demshur also noted Core Labs is an international story, with 80% of revenue coming from oil projects outside the U.S. He said that Mexico is one area that has yet to be exploited and has excellent prospects.

When asked about the possibility of other big oil and gas finds here in the U.S., Demshur stayed mum on citing where they might be, buy did say that one, possibly two, big finds larger than the Bakken and Eagle Ford shales "may" have already been discovered with drillers quietly racing to secure land at those undisclosed locations.

Finally, when asked whether North American energy independence is possible in the next three to five years, Demshur said that while five years may be a little optimistic given how things are progressing, it will certainly happen.

Cramer continued his support for Core Labs.

Executive Decision: Richard Smith

In his second "Executive Decision" segment, Cramer sat down with Richard Smith, chairman, president and CEO of Realogy ( RLGY), a stock that's seen a 24% gain since the company went public in October as the housing market continues to recover.

Smith said Realogy began to see the housing recovery late last year and currently is "very bullish" on the housing market. He said the market is working through a seven-year trough and still has a long way to go to reach pre-2008 levels.

There's a time for renting and a time for owning, said Smith, and the time to own is now, with a recent survey indicating that 81% of consumers would prefer owning a home over renting one. But even with that high level of demand, banks are still only lending to those with the highest credit scores as new lending regulations have yet to be completed.

When asked about home prices, Smith confirmed that prices are indeed on the rise, and are rising rapidly in some markets. But even with the rebound, prices still lag their historical highs, meaning the recovery is still in its early stages.

Cramer said he's been a believer in Realogy since its IPO and he's still a believer today.

Lightning Round

In the Lightning Round, Cramer was bullish on American International Group ( AIG), ViroPharma ( VPHM), Statoil ( STO), Rockwell Collins ( COL), Travelers Companies ( TRV) and Taylor Morrison Home ( TMHC).

Cramer was bearish on SandRidge Permian Trust ( PER) and Gentex ( GNTX).

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: Facebook ( FB), Waste Management ( WM), Pinnacle Foods ( PF), Chicago Bridge & Iron ( CBI) and Occidental Petroleum ( OXY).

Cramer said that this portfolio can't own Chicago and Occidental and he suggested selling Chicago and adding some Merck ( MRK).

The second portfolio's top holdings included: UnitedHealth Group ( UNH), Conoco Phillips ( COP), Boeing ( BA), Netflix ( NFLX) and Mellanox Pharmaceuticals ( MLNX).

Cramer blessed this portfolio as diversified.

The third portfolio had: Dunkin Brands ( DNKN), Bemis ( BMS), Kansas City Southern ( KSU), TransCanada ( TRP) and Flowers Foods ( FLO) as its top five stocks.

Cramer said this portfolio was also terrifically diversified.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer sounded off against the analysts who just can't help themselves from beating up on companies about metrics that don't matter. He said these analysts continue to make noise and only detract from the great stories that management is trying to tell.

Some recent examples include Johnson & Johnson ( JNJ), along with Yahoo! ( YHOO) and Intel ( INTC). While all three of these companies delivered strong quarters, all the analysts could focus on were things like "user engagement" at Yahoo! and "capital spending" at Intel.

Cramer said in the case of J&J, the company was able to defend itself against these attacks, but Yahoo! and Intel saw their stocks falter because of them, at least for the time being.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

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 positions in AAPL, CBI, COP, FB, JNJ, MRK, OXY, PF and WM.

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."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

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.

More from Jim Cramer

Cold Stocks Ready to Heat Up: Cramer's 'Mad Money' Recap (Tuesday 5/22/18)

Cold Stocks Ready to Heat Up: Cramer's 'Mad Money' Recap (Tuesday 5/22/18)

First Data, Sprint, T-Mobile US, Altria: 'Mad Money' Lightning Round

First Data, Sprint, T-Mobile US, Altria: 'Mad Money' Lightning Round

Replay: Jim Cramer on the Markets, Oil, General Electric, Zillow and Micron

Replay: Jim Cramer on the Markets, Oil, General Electric, Zillow and Micron

Jim Cramer: Schlumberger Predicted the Rise in Oil Prices

Jim Cramer: Schlumberger Predicted the Rise in Oil Prices

Jim Cramer on Zillow's New Business: Buying and Selling Homes

Jim Cramer on Zillow's New Business: Buying and Selling Homes