Cramer's 'Mad Money' Recap: Buys Amid the Rubble

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NEW YORK ( TheStreet) -- It's time to head for the bomb shelters tomorrow at 2 p.m. ET, Jim Cramer told his "Mad Money" TV show viewers Tuesday.

He said that after the Federal Reserve's announcement the bears will be out in force. Only after the bombing has subsided should investors consider picking among the rubble.

Which stocks will rally first? Cramer said he's looking towards high-growth names and those hitting new 52-week highs. Stocks like Starbucks ( SBUX) will sound the "all clear," he said.

Beyond Starbucks, Cramer said he'd consider buying some Google ( GOOG), since countless analysts still have $1,000 price targets on the company. Boeing ( BA), General Electric ( GE) and ( AMZN) should also be on the buy list.

Cramer said he also likes the financials, with names like Visa ( V), MasterCard ( MA) and American Express ( AXP).

Those stocks likely to be most hurt by the Fed's announcement will be anything high-yielding, such as real estate investment trusts and master limited partnerships, along with housing-related stocks and anything that's focused on emerging markets. Cramer thinks the banks will ultimately be OK, as they do better as interest rates rise.

So be prepared for the bombing to begin, but after 2 p.m. consider peeking outside the bomb shelter and doing a little buying, Cramer concluded.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Toni Hansen over the charts of two hated stocks on Wall Street, Intuitive Surgical ( ISRG) and Potash ( POT).

According to Hansen's analysis, a monthly chart of Intuitive Surgical shows the stock trending higher since 2004, but hitting a wall and trading sideways so far in 2013. This is not a concern, however, as the stock saw similar hiccups in 2009 and again in 2011. Since the generational low in 2009, the stock had risen 100%; just as the Fibonacci ratios predicted, that move was followed by a 38.2% retracement, which is now a floor of support.

Hansen felt that a move to $580 a share was now possible, which the stock hitting resistance at $534 and $561 a share.

The chart of Potash also followed Fibonacci theory, with the stock displaying a 50% retracement from its highs, making it now poised for a powerful move to the upside and with $56 a share now feasible.

Cramer said while he's a believer in the technical analysis, he's not been a fan of either of these two stocks. He said investors who believe in a global turnaround should consider Potash, but that would be a bold call this early in the economic cycle. As for Intuitive Surgical, Cramer told viewers to look up CNBC colleague Herb Greenberg's recent analysis on that company's outlook.

In Defense of Harris

The defense stocks have been on fire all year despite the sequester, Cramer told viewers, that is, except for Harris ( HRS), which has remained flat. But that doesn't have to be the case, said Cramer, because this company is the perfect candidate to break itself up and reward shareholders.

Cramer explained that Harris manufactures communications equipment for both military and commercial applications. The company has a hand in everything from aircraft communications systems to those used on ships and oil rigs to those used by hospitals to transfer high-speed medical records. Harris even maintains its own fleet of satellites to help make communications possible in the most remote areas of the globe.

But with its commercial and military divisions having very different buying cycles and growth rates, Harris is the perfect candidate to unlock tremendous value, said Cramer, as the separate entities will attract different investors. Harris' defense business is a slow grower with a juicy 3% yield, while its commercial division is a faster growth deserving of a higher multiple.

Cramer compared the possibility of a Harris breakup to Motorola in 2011. He said that split generated a 52% return for investors, compared to only 30% for the broader averages. According to his analysis, Harris could be worth a full 47% more than it trades today just by separating its two businesses.

Lightning Round

In the Lightning Round, Cramer was bullish on Applied Materials ( AMAT), Enterprise Products Partners ( EPD), Loews Corp ( L), MGM Resorts ( MGM) and Las Vegas Sands ( LVS).

Cramer was bearish on BMC Software ( BMC).

Executive Decision: Peter McCausland

In the "Executive Decision" segment, Cramer sat down with Peter McCausland, executive chairman, and Mike Molinini, president and CEO, of Airgas ( ARG), a stock that has soared since the company rebuffed a hostile takeover in 2011.

McCausland said that back in 2011 he had no idea Airgas' stock would rise as much as it has, but he did know the recession was a low point for the company and earnings would rebound, and they have. Molinini noted the company's nonresidential construction customers have been weak of late, as many projects are on the books but have yet to begin construction. That led to the company offering only tepid guidance this quarter.

Among some of the other concerns for Airgas: the company's conversion and integration of its software to a system provided by SAP ( SAP). McCausland said much of the heavy lifting for that conversion is now behind the company, but it has indeed been a huge distraction as workflows and processes had to be adjusted.

Also weighing on the company was the government sequester, which Molinini said is causing biotech companies to be reluctant to spend because their grant funding has become uncertain.

But even with all of the negatives and concerns, McCausland said he's never been more excited about the company, noting Airgas is very well positioned to take advantage of the recovery once it begins in earnest. Cramer said he agreed with that sentiment because Airgas has a hand in so many different growth businesses.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer said now is the time to consider buying some old-school tech names that have been hammered and left for dead. He said after lower PC sales crushed the sector, stocks like Microsoft ( MSFT) and Intel ( INTC) have been not only cheap, but have lowered expectations to a level where beating them will not be a problem.

Cramer said there are a number of names that could be considered including the revived Hewlett-Packard ( HPQ), AvNet ( AVT), Seagate ( STX) and Cree ( CREE).

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 AMAT and GE.

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."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, 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, 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 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, 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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