Cramer's 'Mad Money' Recap: Out With the New

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NEW YORK ( TheStreet) -- It's out with the new and in with the old, Jim Cramer said on "Mad Money" Monday about the market's rotation out of many of the recent high fliers and into safer stocks that have yet to rally.

Biotech has been on a roll this year but today stocks including Celgene ( CELG) and Gilead Sciences ( GILD) fell out of favor and old pharma such as Bristol-Myers Squibb ( BMY) and Merck ( MRK) were the big winners.

In tech, Google ( GOOG) and LinkedIn ( LNKD) are out, while Intel ( INTC) is back in fashion, along with Microsoft ( MSFT) on rumors of a restructuring.

The rotation continued in restaurants, said Cramer, with McDonald's ( MCD) rallying and Chipotle Mexican Grill ( CMG) falling. In retail, Michael Kors ( KORS) was out, but Wal-Mart ( WMT) was in.

Cramer said all of these moves make perfect sense, if you're a money manager. He said managers can't afford to give up their gains from last month, so rotating into names that haven't moved a lot is a tried and true safety strategy. The markets are simply selling high risk and buying low risk.

The only place investors can get into trouble is in trying to scale back into high-yielding stocks like master limited partnerships and real estate investment trusts, Cramer said. These stocks are still too risky because concerns over the Federal Reserve and interest rates haven't subsided.

Executive Decision: Charif Souki

In the "Executive Decision" segment, Cramer once again sat down with Charif Souki, chairman, president and CEO of Cheniere Energy ( LNG), the LNG export company that's up 48% since Cramer last spoke with Souki in January.

Souki said everything is still going according to plan, and he's pushing to have the first tankers filled with U.S. natural gas for export by the end of 2015.

When asked to respond to criticism the U.S. risks exporting too much of a valuable resource, Souki said the U.S. will always have the domestic advantage as $3 natural gas will incur a $3 shipping charge to get it to other parts of the globe. He said the Cheniere project has been years in the making and has spent billions to help America realize its natural gas potential.

Does America have less gas than we think.? Souki said no. He said our country may still have 40,000 wells, the same as last year, but each of those wells is producing more and more gas thanks to better technology. Much of our natural gas supply simply gets burned off, or flared, as a byproduct of oil production, said Souki. "There's plenty of gas for everyone."

Responding to critics who say U.S. gas is best used domestically, Souki said those critics should put their money where their mouths are and build some domestic factories. The gas is here, he said, and they're welcome to use it.

Cramer said Cheniere continues to deliver on its promises and he's still behind the company.

A Breakup in the Making?

The market likes breakup stories and it likes takeovers, Cramer told viewers. Fortunately, there's one company that gives you both possibilities, and that's Agilent ( A), the measurement and testing company that was spun off from Hewlett-Packard ( HPQ) in 1999.

Cramer said Agilent has been doing OK so far this year, up 10%, but it's also lagging the markets, making it ripe for a change. He explained the company's life sciences and chemical division has been held back by its cyclical electronics and testing division. While Agilent has made attempts to diversify itself through acquisitions, in the end all it's done is make things harder for investors to quantify.

As a breakup play, Cramer said Agilent's parts are certainly worth more than the whole, and the parts can only be fully valued once separated. But what about a takeover? Cramer said Danaher ( DHR) is a logical acquirer for Agilent because the company is already in many of Agilent's businesses and there would be a ton of synergies. Danaher has already been on a buying spree and company management has indicated they'd love more life science exposure.

Cramer said he never recommends a company on takeover speculation alone, which is why he loves that Agilent was able to post a 10-cents-a-share earnings beat and continues to clean up its operations.

In the end, Cramer said Agilent's parts are worth $14.3 billion and $8.3 billion, for a total of $22.6 billion, or $65 a share.

Lightning Round

In the Lightning Round, Cramer was bullish on Barnes & Noble ( BKS), Under Armour ( UA), Cisco Systems ( CSCO), Pfizer ( PFE) and GlaxoSmithKline ( GSK).

Cramer was bearish on Eagle Rock Energy Partners ( EROC), West Corp ( WSTC) and Kinder Morgan Energy Partners ( KMP).

Executive Decision: JJ Bienaime

In his second "Executive Decision" segment, Cramer spoke with JJ Bienaime, CEO of BioMarin ( BMRN), a stock that fell 4.6% in today's trading despite compelling new evidence surrounding its breast cancer drugs under development.

Bienaime said today's decline in stock price was caused by expectations getting too high for his company's pipeline. He said it was a classic "sell the news" reaction that has nothing to do with BioMarin's test results.

When asked about those results, Bienaime said his company's drugs for breast and ovarian cancer are performing well, as they indicated, and there will be even more data presented in September and December of this year. He noted that unlike some other treatments under development, BioMarin's treatment is only one capsule a day, compared to up to 18 capsules a day for others. Bienaime also said the opportunities for drugs under development could be even great with additional indications.

When asked what makes BioMarin different than other biotechs and Big Pharma working in the cancer space, Bienaime said BioMarin has always focused on smaller, orphan drugs and that today, cancer treatment is moving away from "one size fits all" treatments and into more specialized drugs that effectively treat only certain indications and mutations of cancers, which is exactly where BioMarin excels.

Cramer said BioMarin remains his favorite biotech stock in the group.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer said it's time to start selling some of the oil stocks because crude prices are on the verge of a major move to the downside.

Cramer explained that for weeks now commodities like steel, copper and aluminum have all been falling, signaling a slowdown in the world's emerging markets. Yet, Brent crude prices have held fast above $100, as if to mock the moves in the other commodities. With U.S. oil imports continuing to decline as domestic production increases, Cramer said Brent crude is due a sizable pullback.

That may be good news for the U.S. economy, he concluded, but will be bad news for any oil stocks in your portfolio.

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 CSCO and GSK.

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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