Cramer's 'Mad Money' Recap: Once Hated, Now Loved

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NEW YORK ( TheStreet) -- Investors are like most TV watchers, always changing channels, Jim Cramer told his "Mad Money" TV show viewers Thursday. He opined about a multitude of stocks that were once hated but are now loved as investors have once again changed their minds.

No stock illustrates this move better than Facebook ( FB), a stock Cramer owns for his charitable trust, Action Alerts PLUS . Cramer said that after the worst IPO in history, Facebook has emerged as the king of mobile and social advertisers. He's still a buyer of Facebook, along with Google ( GOOG).

Other sectors that are getting a second look include travel, thanks to TripAdvisor ( TRIP), and the airlines, with US Airways ( LCC) leading the charge.

Biotech remains a hot sector, with Cramer recommending Celgene ( CELG) and Regeneron ( REGN) as just two of many faves. He was also bullish on housing, despite disappointments from D.R. Horton ( DHI). He said that news won't affect ancillary housing stocks such as Home Depot ( HD) and Restoration Hardware ( RH).

Other Cramer faves include the autos, banks and oil and gas stocks, along with some technology and semiconductor names. Cramer even had kind words for Starbucks ( SBUX) and Dunkin' Brands ( DNKN).

Executive Decision: Tarek Sherif

In the "Executive Decision" segment, Cramer spoke with Tarek Sherif, founder, chairman and CEO of Medidata Solutions ( MDSO), the cloud computing provider to the health care industry that's seen it shares rise by 30% since Cramer last spoke with Sherif just six weeks ago.

Sherif said the Food and Drug Administration is mandating that the industry change the way it performs clinical trials, and Medidata is the prime beneficiary of that mandate. He said by using modern cloud technology, Medidata is driving value by improving the quality of trials with less risk and helping to bring better drugs to market faster.

Sherif said clinical trials are still largely in the early stages of using technology, but those that have embraced the technology are getting through their trials faster. He said Medidata has a terrific business model where 80% to 90% of its revenue stems from repeat customers.

Cramer said Medidata is an expensive stock, but like many other cloud computing companies the expensive only get more expensive as they rocket higher and higher.

A Serving of Restaurant Stocks

It's the same old story, Cramer told viewers: Companies that execute will see their stocks go higher, while those that drop the ball get punished by the markets. That was certainly evident in the restaurant stocks this quarter, Cramer noted, with several notable standouts.

Weak earnings from Ruby Tuesday ( RT) and Cheesecake Factory ( CAKE) took down many of the restaurant names today, but Cramer said that's a buying opportunity if investors choose the right stocks.

McDonald's ( MCD) told investors that a weak consumer was to blame for its disappointing quarter, but Cramer said that in reality McDonald's was an outlier because Chipotle Mexican Grill ( CMG) didn't have such complaints and posted store growth of 5.5%.

Panera Bread ( PNRA) missed earnings by 3 cents a share but Cramer said the problem there appears to be just a problem serving so many customers. Panera is still set to grow its store count by 7% this year and its stock trades at just 20 times earnings with an 18% growth rate.

Cramer reiterated his buy on Domino's Pizza ( DPZ) after talking to its CEO earlier this week, and was bullish on both Dunkin' Brands and Starbucks, saying that all three stocks are worth buying right here.

Lightning Round

In the Lightning Round, Cramer was bullish on Qualcomm ( QCOM), Noble Energy ( NBL), Xerox ( XRX), CVS Caremark ( CVS), Walgreen ( WAG) and CBRL Group ( CBRL).

Cramer was bearish on Philip Morris International ( PM), Rite Aid ( RAD), Sony ( SNE) and Take-Two Interactive ( TTWO).

Executive Decision: Nick Akins

In his second "Executive Decision" segment, Cramer spoke with Nick Akins, president and CEO of American Electric Power ( AEP), which today posted a miss of 1 cent a share in earnings on flat revenue while reaffirming its full-year guidance. American Electric currently sports a 4.25% dividend yield.

Akins said that while the manufacturing segment of our economy continues to struggle, once it gets going again earnings will take off at American Electric thanks to the many investments it has made in infrastructure and cost cutting thus far. He said that earnings are split evenly between industrial, commercial and residential customers. While margins are lower on the industrial side, once that segment begins growing the other two quickly follow.

Among the current bright spots for the power company are Texas and Ohio, two areas where housing is improving and where the oil and gas industries are flourishing. Akins said that new leadership at the Environmental Protection Agency is also helping the industry overall, as the agency is learning from the mistakes of past leadership and listening more to what power companies need.

Cramer said that while American Electric Power has been hurt by the rotation out of high-yielding dividend stocks, once the economy picks up more steam this stock will be ready to resume higher.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer said today's indictment of SAC Capital proves that investors weren't paranoid to think that some of the biggest investors had an inside edge on information -- that edge actually existed.

Cramer said the notion that the big boys knew what was going to happen before it happened has been proven correct, as SAC's culture of "don't ask, don't tell" when it came to where analysts got their information is the exact opposite of how an honest firm behaves. He said that such reckless behavior undermines confidence and wrecks the level playing field that all investors rely on.

Cramer cautioned all hedge fund managers that if they're trying to get an illegal edge on the markets, the government will eventually catch them.

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 FB.

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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