Cramer's 'Mad Money' Recap: Step Aside, Chicken Little

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NEW YORK ( TheStreet) -- The bears may be proclaiming the sky is falling, but if you examine when the sky actually did fall you'll find that we're nowhere near those dangerous levels, Jim Cramer said on "Mad Money" Thursday.

Cramer said the markets have seen parabolic moves in the past, such as the period between 1999 and early 2000. Back then, the Nasdaq rallied nearly 500 points per month. But in recent months, the Nasdaq has only rallied 200 points per month.

Back in 2000, the market leaders were trading at huge valuations, he added, but in today's markets, Google ( GOOG), Microsoft ( MSFT) and Cisco ( CSCO) trade at 19, 12 and 11 times earnings, respectively -- hardly reckless valuations given that both Microsoft and Cisco sport 2.8% yields.

In another market panic, that of 1987, Cramer noted the S&P 500 traded at an average valuation of 29 times earnings. Today, that number is only 16 times earnings. These are not ludicrous valuations, he continued. The semiconductor stocks are nowhere near their 2007 peak and even the best-performing financial stock, Citigroup ( C), is still $450 a share from its all-time highs.

Those stocks that do seem frothy, such as Tesla Motors ( TSLA), are victims of a short squeeze, which illustrates that stock never should have been so low in the first place. Meanwhile, others, such as Netflix ( NFLX), are also nowhere near their 2011 highs.

So are stocks overvalued and poised for a huge decline? Cramer said he thinks not.

Follow the Pipeline

Looking for the antidote to a frothy stock market? Cramer told viewers to stick with the big themes that are working such as the North American energy revolution. He said one of the best ways to play this revolution is with the pipeline master limited partnerships, or MLPs, such as Kinder Morgan Energy Partners ( KMP) and Enterprise Product Partners ( EPD).

Cramer said both of these pipeline players can be viewed as toll road operators for the ever-increasing amounts of crude being pumped out of our oil shale fields including the Bakken, Eagle Ford and Marcellus. Currently, there is little to no infrastructure in these areas, which has forced operators to use any means necessary, including trains, trucks and barges, to get their oil where it needs to go. That leaves huge opportunities for pipeline operators like Kinder and Enterprise to expand their operations.

Kinder Morgan currently maintains over 80,000 miles of pipelines and has many smart acquisitions of companies including El Paso and Copano to beef up its networks. Shares of Kinder have returned 153%, including reinvested dividends, since Cramer got behind the company in April 2007, which is why he owns it for his charitable trust, Action Alerts PLUS.

Enterprise Products Partners is another solid player in this space, said Cramer, with an excellent track record and stellar management. Both companies sport above-average dividend yields and afford investors terrific opportunities for growth in the future.

More MLP All-Stars

Continuing with his list of MLP all-stars, Cramer also highlighted three pipeline players in the natural gas liquids space. He said that MarkWest Energy ( MWE) currently yields 5% and is expected to grow 10% per year for the next few years. He said the company is not only a pipeline player, but also a gathering and processing operator, which gives the stock more risk but also higher rewards.

Also making the list was Plains All American ( PAA), which presently yields 3.9% thanks to a stock that's risen 28% so far this year. Like MarkWest, Cramer said Plains is operating in liquid-rich areas like Marcellus and Utica and is expected to grow between 9% and 10% a year in the near term.

Last on the list, Williams Partners ( WPZ), a 66% yielder that also has a natural gas gathering and processing component to its pipeline network. Cramer said this stock is the most volatile of the group, but it has also recently fallen to an attractive level.

Cramer said that any of these pipeline MLPs will give investors both stability and yield.

Lightning Round

In the Lightning Round, Cramer was bullish on Gilead Sciences ( GILD), Federal Realty Investment Trust ( FRT) and Starbucks ( SBUX).

Cramer was bearish on Magnum Hunter Resources ( MHR).

Executive Decision: Udo Rieder

In the "Executive Decision" segment, Cramer sat down with Udo Rieder, CEO of Erickson Air-Crane ( EAC), a small-cap provider of precision helicopter services for construction, firefighting and other applications. Shares of Erickson are up 233% so far in 2013.

Rieder explained that Erickson began decades ago with a single helicopter providing logging operations, but has now expanded into global company with 20 helicopters that fly specialized missions 365 days a year. He said in South America, for example, the company plays a critical role in the region's booming oil and gas market, while in the Middle East, it focuses on rebuilding efforts.

One of Erickson's more notable projects was powerline construction connecting solar fields in the desert to the city of San Diego. Rieder explained that much of the desert was land that could not have supplies trucked in, so Erickson was able to construct towers within a 20-meter area without disrupting the surrounding habitat.

When asked about the company's increased debt, which has financed much of its recent growth, Rieder said he's comfortable with Erickson's current debt levels and doesn't see problems repaying.

Cramer said Erickson is one of the most exciting and unique companies he's ever had on "Mad Money."

No Huddle Offense

In his "No Huddle Offense" segment, Cramer sounded off against the cottage industry of media that now makes a living reporting on the SEC filings of hedge funds.

He said these 13F and other filings are not only old news, but are also totally irrelevant for the average investor. Did a fund sell a stock because it no longer likes it or because it was simply overweight in a sector?

That information cannot be gleaned by these reports, yet that is precisely what investors trying to mirror a successful fund's performance seek.

Cramer said this type of reporting, as well as the notion of "risk on, risk off," trading, is "too stupid for words."

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 KMP.

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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