Cramer's 'Mad Money' Recap: It's Time for Tech Stocks

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NEW YORK ( TheStreet) -- Is it time to start betting on some high-profile tech turnarounds?

Jim Cramer told his "Mad Money" TV show viewers Tuesday that after despising names such as Groupon ( GRPN) and Nokia ( NOK), it may be time to change his tune.

Cramer said he never liked Groupon, the over-hyped online coupon Web site that's done nothing but disappoint the markets since its IPO. But when the company's CEO stepped down earlier this year, that signaled a big change, one that Cramer admitted he didn't take seriously. He advised investors to stop selling Groupon back in February, but never told them to start buying, which turned out to be a mistake. Cramer said the time to buy Groupon is now.

But what of Zynga ( ZNGA), the online game maker whose stock has followed Groupon's path hopelessly lower? Here, too, Cramer said a new CEO makes all the difference and he feels it's not too late to begin buying into this turnaround story.

Then there's Nokia, the beleaguered phone maker that everyone assumed Microsoft ( MSFT) would acquire. Cramer said now that Nokia bought Siemens ( SI) out of their joint venture, the path may now be cleared for that acquisition to happen. With little downside remaining, Cramer said he'd be a buyer here as well.

Finally, there's BlackBerry ( BBRY). Cramer said unlike Groupon and Zynga, BlackBerry's CEO has done little to turn the company's fortunes. He said without splitting itself up or getting acquired, he sees little hope for BlackBerry's current strategy and is therefore not a buyer.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleague tim Collins over the charts of two food stocks, Kellogg ( K) and J.M. Smucker ( SJM).

Collins noted that while Kellogg is already up 17% for the year, the stock is just getting started because its 13-day moving average just crossed over its 34-day average, a medium-term bullish signal. After making a false move higher in May, Collins felt this most recent move is the real deal and is confirmed by a flag formation in the stock's weekly chart and the stochastics also rising.

Collins saw the identical pattern in Smucker -- a strong rally followed by three months of consolidation and now a crossover with stochastics pulling in the stock's favor. He felt Smucker was set to head to $110 a share.

Cramer said that at first he didn't feel that these iconic food names could possibly have any more room to run, but after seeing Collins' research, he is convinced that both companies have further upside potential.

Nascar Accelerates

In a special interview, Cramer went one-on-one with Brian France, chairman and CEO of Nascar, the group that governs several auto racing events. The sport is the second-most popular after professional football.

France said that while corporate America remains cautious about its advertising spending, nearly one in four Fortune 500 companies now advertise with Nascar. He noted that some sponsors, like 3M ( MMM), have been with the sport for over a decade and realize that the value is always there.

When asked about Nascar's changing demographics, France noted the sport now has a 40% female fan base as well as a large number of families that come to events. Nascar is also stepping up its efforts to appeal to the Hispanic population, making it a true representation of America.

Finally, when asked about technological innovation, France said Nascar has always been a leader in developing everything from new systems inside of cars to safety systems and barriers to new processes for caring and maintaining roads.

Lightning Round

In the Lightning Round, Cramer was bullish on Allscripts Healthcare ( MDRX), Cerner ( CERN), Wells Fargo ( WFC), LinkedIn ( LNKD), Advanced Micro Devices ( AMD) and Cummins ( CMI).

Cramer was bearish on Weatherford International ( WFT), Linn Energy ( LINE), ExOne ( XONE), Bank of America ( BAC) and Navistar ( NAV).

Executive Decision: Marty Mucci

In the "Executive Decision" segment, Cramer spoke with Marty Mucci, president and CEO of Paychex ( PAYX), the payroll processor that missed on earnings by three cents a share on lighter-than-expected revenue and a checks-per-payroll number that was only up slightly.

Mucci said that one quarter does not make a trend and he's hopeful for a bounce back in the current quarter. He said new regulations and health care reforms are hampering a pickup in hiring as companies continue to be cautious around the new rules.

Overall, however, Mucci said he's pleased with the housing recovery and is seeing a pickup in temporary workers. He was also bullish on the promise of higher interest rates, saying that just a 25-basis-point increase in rates translates into $5 million in additional revenue. Paychex also has a thriving insurance business, which just recently hit $100 million in annual revenue.

Cramer said Paychex' most recent results have reset the expectations of the analysts, which means the company will be poised to beat the numbers next quarter.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer said it's time to have a wake-up call and stop focusing internationally and start focusing on where the money's being made, right here at home.

Cramer said while so many money managers start their days looking at Japan, China and Europe and then focus their afternoons guessing what the Fed will do next, stocks like Onyx Pharmaceuticals ( ONXX) and Noodles & Company ( NDLS) are where the real money is at.

IPOs like Noodles have been lost amid the global woes, said Cramer, but anyone could have seen the Onyx acquisition coming with even a bit of homework. "You don't find a Noodles by looking at the yen," he 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 positions in LINE and WFC.

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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