Cramer's 'Mad Money' Recap: The Rich Are Different

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NEW YORK ( TheStreet) -- The rich aren't like you and me, Jim Cramer reminded his "Mad Money" TV show viewers Thursday as he revisited his "Great Gatsby" index of stocks that cater to the rich and compared them to the markets overall.

Cramer said that overall, his list of 11 premium stocks has trounced the S&P 500, delivering a return double that of the broader averages since the list debuted on March 13.

Among the winners were Michael Kors ( KORS), which saw a 30% rise in same-store sales; Lululemon Athletica ( LULU), which rebounded nicely from its yoga pants recall; and Whole Foods Market ( WFM), which showed its true colors by surprising all of the anaylsts.

Other Gatsby winners included Starbucks ( SBUX), Tiffany ( TIF) and Coach ( COH), along with Panera Bread ( PNRA).

There were some laggards in the index, noted Cramer, including Ralph Lauren ( RL), Toll Brothers ( TOL) and Estee Lauder ( EL). There were also disappointing results from Nordstrom ( JWN), said Cramer.

But all of those negatives were promptly undone by Saks ( SKS), the high-end retailer that popped a full 32% since March, making it the best-performing stock in Cramer's Gatsby index.

So while the middle class may still be struggling to qualify for a home loan or find work, all appears to be well with the rich, who are clearly spending a lot more than you or me, Cramer concluded.

Go Royal

Shares of the Royal Bank of Scotland ( RBS) may still be hated by investors, but that's exactly why they should consider buying it, Cramer told viewers.

He said the U.K. government will likely be selling its 82% stake in the bank over the next 18 months. If RBS follows in the footsteps of American International Group ( AIG) and Citigroup ( C), that sale will be the start of an amazing move to the upside.

Cramer reminded viewers that shares of AIG have been steadily rising since the U.S. government sold its stake in the firm last year. Meanwhile, shares of Citigroup have more than doubled since the bank repaid its government loan. He said European banks may still be out of favor on Wall Street but that's all the more reason to like RBS.

With the government selling its stake, there will be an increase in liquidity, said Cramer, and that's something institutional investors love to buy. In addition, RBS is currently part of a happy oligopoly, commanding nearly 36% of the U.K. corporate banking market, along with the strong franchise in retail banking, both in Europe and here in the U.S.

There are still some bad parts of RBS, noted Cramer, but even there the damage has already been done and the bank has almost completed its restructuring efforts. Cramer said he could see shares of RBS a full 40% higher than where they trade today, which is why investors should start considering the stock before the U.K. government completes its withdrawal.

Executive Decisoin: Cheryl Bachelder

In the "Executive Decision" segment, Cramer once again sat down with Cheryl Bachelder, CEO of AFC Enterprises ( AFCE), of the Popeye's restaurant chain, which just posted a 14% rise in revenue on a 4.5% pop in same-store sales thanks to its remodeling and rebranding efforts. Shares of AFC are up 54% since Cramer first got behind the company in August of last year.

Bachelder said the fundamentals at Popeye's continue to drive the business to new heights. She said the company is building more drive-throughs and the remodeling efforts, which currently account for 35% of all locations, continues to bring new business to the chain. When asked about the possibility of adding breakfast items, Bachelder said Popeye's fully plans to add a breakfast menu after it has fully exploited the opportunities for lunch and dinner.

Turning to growth, Bachelder confirmed she sees the possibility of adding twice as many locations in the U.S. because there are still many places that don't yet have Popeye's, or have only limited restaurants. When asked about commodity prices, Bachelder said she expects prices for chicken and other items to be flat for the year.

Cramer said AFC remains one of the strongest growth stories in the restaurant group.

Lightning Round

In the Lightning Round, Cramer was bullish on Quintiles Transnational ( Q), Dover Corp. ( DOV), Las Vegas Sands ( LVS), MGM Resorts ( MGM) and Santarus ( SNTS).

Cramer was bearish on McDonald's ( MCD) and Melco PBL Entertainment ( MPEL).

Executive Decision: Sam Thomas

In his second "Executive Decision" segment, Cramer sat down with Sam Thomas, chairman, president and CEO of Chart Industries ( GTLS), a stock that's up 155% since Cramer first got behind the stock in February 2011.

Thomas said that Chart is in a unique position to make money in the natural gas boom no matter what the end market for the fuel may be, whether it's domestic or exported overseas. He said while some have sounded the alarm that the U.S. is preparing to export too much of its tremendous natural gas supply, in reality, Thomas expects only five to six export terminals will actually be built, equating to only 10% to 15% of overall production.

When asked about growth and demand for natural gas worldwide, Thomas said China will be the model for both the U.S. and Europe in the years to come. He said China also started small, as the U.S. is today, but saw rapid growth in natural gas as its economy began to improve.

Thomas also touted some of Chart's lesser-known businesses, such as health care services, as a continued driver for its continued successes.

Turning back to growth, Thomas said Chart continues to grow its workforce and has added 1,000 jobs worldwide over the past 18 months. The company continues to plan for growth and expects to continue to be a global leader in its space.

Cramer continued his support for Chart Industries.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer praised Warren Buffett's acquisition of NV Energy ( NVE) as simply "brilliant."

Cramer said that after being hit hard by the economic downturn, power usage is about to soar in Nevada as home buyers once again flock to the state. That puts Berkshire Hathaway ( BRK.B) in the perfect position to prosper.

Given Nevada's close proximity to the ever-power-hungry California market and NV Energy's alternative and renewable energy prospects, the acquisition is a win on multiple levels, Cramer concluded.

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 no position in stocks mentioned.

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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