Cramer's 'Mad Money' Recap: Invest in the Unstoppable Stocks

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NEW YORK ( TheStreet) -- The calvary will be coming... eventually, Jim Cramer assured his "Mad Money" viewers Thursday.

Cramer said investors might not know when, or at what price, the bottom will be at hand but it will happen.

That's why investors need to remember their history -- there are sectors of the economy that do well when interest rates are on the rise, and those stocks can help your portfolio if you let them. So while the REITs and MLPs are getting crushed along with just about everything that has high yield including the drugs and utilities, other sectors like the financials, industrials and tech stocks are all getting ready to roar.

Cramer said investors won't be helped by a stock that makes 3% in dividends but loses 15% in principal, which is why investing in the sectors that prosper during boom times is the way to go. The Fed is easing its bond buying because things are going well, Cramer reminded viewers, and that means industries will be building more factories and banks will be financing them and tech companies will be putting a ton of new hardware and software into them.

Stocks like Eaton ( ETN) and PPG ( PPG) will soon be unstoppable, said Cramer, as will special growth stories like Starbucks ( SBUX), Restoration Hardware ( RH) and MasterCard ( MA). In the banking group, Cramer said all of the regional banks also remain very attractive.

So while the market, still just off its highs, will continue to be in the blast zone for the next few days, the banks, techs and industrials may be ripe for the picking starting tomorrow.

How to Love Regional Banks

The regional banks have been among the most hated stocks for a long, long time, Cramer told viewers, but now that the economy is getting a little better, it's time to step up once the dust settles and put some money to work.

Cramer said the regional banks are the bedrock of their local economies, which is why stocks such as Huntington Bancshares ( HBAN), BB&T ( BBT) and First Horizon ( FHN) all barely dipped despite today's horrible market action.

Many of these stocks are still trading far cheaper than they did just a few years ago. He noted that First Horizon used to trade for $39 a share but now sells for under $11, while Huntington used to trade at $29 and now is under $7. That's very cheap by historical standards, and why today's selloff had little effect.

But more important than their cheap valuations is how banks make money. Cramer said banks will pay you 0.81% on a five-year CD but will, in turn, invest that money in a five-year Treasury yielding 1.38%. That might not seem like a big spread, he said, but it's more than banks have seen in a very long time and Treasuries will certainly see rates rise faster than the banks will raise their CD rates going forward.

Institutional investors in bank stocks only care about one thing: net interest margin. Now that rates are on the rise, these investors will be returning to the regionals, which is why individual investors should be as well, Cramer said.

Marking Up

It's the end of another quarter on Wall Street, Cramer reminded viewers, and that means it's time for hedge funds and money managers to pile into this quarter's big winners to make themselves look a little better on paper. It's called "marking up," Cramer explained, and it works like clockwork. That's why he reviewed this quarter's biggest winners to see whether they're still worth buying.

Leading the pack was First Solar ( FSLR), which rose 56% this quarter, thanks to its best-of-breed technology and a slowdown in Chinese dumping. Cramer said he missed the move in this stock and he's not a buyer.

Next on the list was Advanced Micro Devices ( AMD), up 52% for the quarter. Cramer said this company should have a strong second half thanks to the Playstation 4 and new Xbox. He gave it his blessing to buy.

Similarly, GameStop ( GME) is up 46% for the quarter, for many of the same reasons. Cramer said he'd be a buyer of this stock only on weakness.

Fourth was Micron Technology ( MU), which rose 36% this quarter. Cramer said this company is benefiting from a planned acquisition as well as the end of new manufacturing capacity coming online. He said Micron's DRAM and NAND memory businesses are both doing well.

Finally, there's Activis ( ACT), a company Cramer said he also likes going into the second half of 2013.

Lightning Round

In the Lightning Round, Cramer was bullish on Las Vegas Sands ( LVS).

Cramer was bearish on American Capital Agency ( AGNC), SunPower ( SPWR), Parker Drilling ( PKD) and International Game Technology ( IGT).

Executive Decision: David Wenner

In the "Executive Decision" segment, Cramer once again sat down with David Wenner, president and CEO of B&G Foods ( BGS), a stock that's up 202% since Cramer first got behind the stock in Oct 2010.

Wenner said that B&G's acquisition of Pirate Brands, a maker of healthy snack foods, is just another in a series of "smart" acquisitions that are helping his company continue its growth trajectory. He said there are still plenty of brands out there to be bought and B&G remains positioned to make more acquisitions as great deals arise.

When asked about the Pirate acquisition in particular, Wenner said the deal gives B&G more exposure in the higher-growth snack for segment and since investors are now looking for both yield and growth, Pirate is a perfect fit.

Also helping B&G's success is its product innovations. Wenner said his company has launched 30 new products across many of its product lines in recent months and innovation will continue to be a focus

Am I Diversified?

In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.

One portfolio included: AT&T ( T), Exxon Mobil ( XOM), Southern Company ( SO), Apple ( AAPL) and SPDR Gold Shares ( GLD).

Cramer said this was a conservative portfolio, but it is a well-diversified 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 a position in AAPL and ETN.

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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