Cramer's 'Mad Money' Recap: The Unsinkable Stock Market

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NEW YORK ( TheStreet) -- This unsinkable market just won't quit, Jim Cramer announced to his "Mad Money" TV show viewers Tuesday, as he opined on yet another up day in the markets. Cramer said that despite a groundswell of negativity, the markets have yet to have a three-day losing streak in 2013.

With the calendar page turning to the dreaded month of May tomorrow, Cramer said there will undoubtedly be plenty of talk surround the old adage of "sell in May and go away." Yet, history tells us that May isn't inherently bad for stocks, it's at best a coin toss, with the markets rising about 50% of the time in recent years.

So why are the analysts so negative and so wrong about stocks? It wasn't until shares of Apple ( AAPL) fell from over $700 to just $389 that analysts from Goldman Sachs, UBS and others finally stepped away from their $750 plus price targets and downgraded the stock, which Cramer owns for his charitable trust, Action Alerts PLUS .

Analysts were also late in downgrading Best Buy ( BBY) last year, recommending it all the way from $30 to $7 before initiating their mass exodus. The same was true for Netflix ( NFLX) and Chipotle Mexican Grill ( CMG), said Cramer. In each case, the analysts gave up at the bottom.

Only pessimism seems to be taken seriously in today's market, Cramer concluded, and anyone who is positive is skewered for being so -- even though they're right.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Tim Collins over the chart of Berkshire Hathaway ( BRK.B) ahead of the company's annual shareholder meeting.

Collins noted that after a four-month rally, the daily chart of Berkshire has been trading sideways for almost a month, displaying a classic pennant or flag pattern, which is often bullish for stocks. He felt that once the stock breaks above the $108 level, it could quickly rally to the range of $113 to $122 a share.

This thesis was confirmed by the accumulation distribution line, a measure of the money flowing into, or out of, a stock. The line showed that Berkshire has been in accumulation mode in recent weeks. The relative strength indicator, or RSI, is displaying a bearish divergence, which is typical during a consolidation phase.

On the weekly chart, Collins examined the MFI, or money flow oscillator, which told him that his initial assessments were correct.

Cramer said he agrees with Collins and thinks Berkshire remains a terrific investment.

Executive Decision: Patrick Doyle

In the "Executive Decision" segment, Cramer sat down with Patrick Doyle, president and CEO of Domino's Pizza ( DPZ), a company that posted a four-cents-a-share earnings beat on a 8.6% rise in revenue and a 6.2% increase in U.S. same-store sales. Shares of Domino's are up 480% since Cramer first recommended the stock in Jan 2010.

Doyle started off by saying that of the 1,000-plus franchisees in the U.S., nearly 900 of those started working for Domino's as a delivery driver or other ground-level employee. He said that statistic shows the power of the Domino's system and the passion of its employees. That's also why he remains frustrated with the state of finance in our country, as many well-qualified candidates still cannot obtain financing to become new franchisees.

Turning towards the company's remarkable growth, Doyle said there's still plenty of room for Domino's to expand internationally. He said the store counts in Japan, for instance, could easily double, while France could quadruple. Even in Turkey, Domino's has proven to be an unlikely favorite cuisine and offers tremendous potential.

When asked about the company's digital advertising efforts, Doyle said that Domino's is constantly evaluating its advertising spending and often changes the mix between digital versus traditional channels. That said, digital offers tremendous analytics, he said, and allows them to tweak their digital spending to match, or beat, the performance of their other channels.

Finally, when asked about the company's planned uses for its growing cash flows, Doyle said the regular dividend will continue and the remaining cash will be deployed based on what's best for its shareholders at the time.

Cramer said that Domino's continues to be a terrific growth story.

Lightning Round

In the Lightning Round, Cramer was bullish on International Paper ( IP), Canadian Pacific Railway ( CP), CSX ( CSX), Kroger ( KR), Cree ( CREE) and Eaton ( ETN).

Cramer was bearish on BGC Partners ( BGCP).

Breakup Story

Breaking up is easy to do, Cramer told viewers, at least when it comes to stocks, and most of the time, it's profitable as well. That was Cramer's take on PerkinElmer ( PKI) the human health and diagnostics company that could unlock tremendous value by splitting itself up.

Cramer explained that PerkinElmer is actually two companies in one. It has a human health business that accounts for 56% of sales, and also an environmental business. He said the human health and diagnostic business is growing fast, but that growth has been masked by the environmental business that is slower growing and with smaller margins.

When the company last reported, PerkinElmer saw its shares decline by 12%, despite the fact that 85% of the company was actually in pretty good shape. The remaining 15%, however, saw sales fall by 25% thanks to weakness in Europe and Japan.

Cramer said that based on recent takeovers, PerkinElmer's human health business is worth $1.8 billion. Its diagnostic business adds another $3.3 billion, for a total of $5.1 billion. The markets currently value the company at just $4.4 billion.

But wait, there's more. Cramer said the environmental business, despite being sluggish, is still worth $1.9 billion -- meaning PerkinElmer should be valued at $7 billion, or a 59% premium from where it trades today.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer asked the question, "What if Europe has finally hit bottom?"

Is it silly to think this ever-declining continent could finally stabilize? Cramer said that's exactly what management at Eaton, PPG ( PPG), Starbucks ( SBUX) and Clorox ( CLX) said on their earnings calls, and smart investors should be taking notice.

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 AAPL and ETN.

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.

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