Cramer's 'Mad Money' Recap: Hiders and Seekers

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NEW YORK ( TheStreet) -- Nobody likes a divided market, Jim Cramer told his "Mad Money" TV show viewers Tuesday, especially when both sides agree that it's time to sell.

But that's exactly what the market has become as both the "hiders" and the "seekers" now have reasons to hate it, said Cramer.

Cramer explained the "hiders" are those investors worried a change in Federal Reserve policy will signal the end for stocks. He said this camp has been hanging on the Fed's every word and has been hiding in high-yielding and safety stocks including Kellogg ( K) and Coca-Cola ( KO). This camp doesn't need a new reason to hate the market because they've hated it all along.

The second camp are the "seekers," those that just a few days ago bucked the Fed fears and were excited about any company whose prospects for 2013 were looking up. Whether it was technology, banks or oil stocks, these seekers were finding value in beaten-down names and weren't afraid to take a chance on the likes of Toll Brothers ( TOL) given the strength in the housing market.

Things all changed for the seekers, however, after the market's big run over the past two weeks, Cramer continued. With valuations running higher, the seekers are now looking to lock in their gains and are waiting for a pullback to get better prices. This means that right now both camps of investors are looking to sell, albeit for totally different reasons.

This trend is evident in Toll Brothers, said Cramer. That stock ran from $30 to $38 a share last week after the company reported a solid quarter, only to fall this week back to $32 a share as investors locked in profits and began waiting for a better entry point. Both camps were happy 10 days ago, Cramer concluded, but not any longer.

Executive Decision: S.A. Abrahim

In the "Executive Decision" segment, Cramer sat down with S.A. Abrahim, CEO of Radian Group ( RDN), the mortgage insurer that's risen 60% since Cramer first got behind the company in February and 21% since Cramer last spoke with Ibrahim on March 14.

Abrahim had good things to say about his company's outlook. He's not worried interest rates are starting to tick upwards, mainly because they're coming off historically low levels. The markets are still geared towards first-time homebuyers, and that's good news for Radian. Not only did the company have record loan volume in May, Abrahim said his company's pipeline is picking up.

Another metric moving in Radian's favor: home values. Abrahim said homeowners are less likely to default on mortgages when home prices are rising and will have more options available to them other than defaulting on their loans.

Cramer also asked Abrahim about recent proposals to scale back the government's involvement in mortgage insurance. Abrahim said many of these proposals would be in Radian's favor as they'd give the private sector a larger part of the overall mortgage market.

For all these reasons, Cramer said Radian remains one of his top picks in the housing market.

Executive Decision: Marc Benioff

In his second "Executive Decision" segment, Cramer once again spoke with Marc Benioff, chairman and CEO of ( CRM), which today announced it's acquiring Exact Target ( ET). Benioff last appeared on "Mad Money" 10 days ago after Salesforce reported its most recent quarter.

Benioff said it was imperative for Salesforce to be the number one player in sales, service and marketing software. The Exact Target acquisition, which is costing his company $2.5 billion, was the perfect match to fill in the marketing leg of that three-legged stool.

Benioff explained Exact Target, which is already a Salesforce partner, is a young company with lots of room to grow but is already a leader in the email and digital marketing space, which Salesforce customers have been seeking.

Cramer said acquisitions like Exact Target are the reason he continues to recommend as a cloud computing leader.

Lightning Round

In the Lightning Round, Cramer was bullish on Advanced Micro Devices ( AMD), Isis Pharmaceuticals ( ISIS), Green Mountain Coffee Roasters ( GMCR), CVS Caremark ( CVS) and Walgreens ( WAG).

Cramer was bearish on Walt Disney ( DIS), SolarCity ( SCTY), Rite Aid ( RAD) and ADT ( ADT).

Executive Decision: Susan Salka

In a third "Executive Decision" segment, Cramer sat down with Susan Salka, president and CEO of AMN Healthcare Services ( AHS), a staffing and solutions provider for the health care industry that recently posted a four-cents-a-share earnings beat with solid growth in all of the company's segments.

Salka said there's a perfect storm brewing in America's health care system. She said the baby boomers are needing more health care services at the same time as Obamacare is adding millions of newly insured Americans. Add to that a growing shortage of doctors and nurses and it's easy to see why AMN's staffing services are in such high demand.

Salka explained that AMN's business has evolved with the industry and now is providing a lot more than just qualified temporary staffing for hospitals. She said AMN's platform now provides hospitals consistency across multiple locations and, with better analytics, can aid them in planning for future growth -- all while spending less overall.

For qualified doctors and nurses, Salka said AMN makes finding a job easy by matching up the best people with the best locations.

Cramer said that while AMN is a little-known company, it has a compelling story.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer sounded off against the bubble in calling out bubbles. He said this binary thinking may help pundits sound smart on TV, but it's totally not helpful for investors.

Cramer said sounding the alarm about a "bubble" in housing or a "bubble" in the oil stocks is nothing more than a cheap way to get publicity. Sometimes stocks get too hot, he said, but there's no reason to encourage a panic.

Take Coca-Cola. Cramer said that Coke now trades for 2.3 times its growth rate. That's too expensive in Cramer's book, but he said the only "bubbles" at Coke are in its products.

Stop scaring and start helping people, 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, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 is related to the specific opinions expressed by him on "Mad Money."

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