Cramer's 'Mad Money' Recap: A Market Too Good to Ignore

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NEW YORK ( TheStreet) -- It's hard to hate a market that's making so many new highs, Jim Cramer told his "Mad Money" TV show viewers Monday as he recapped the day's action on Wall Street. Cramer said with so many diverse stocks on the 52-week and all-time high lists, there's just too many good things to ignore.

Among those on the all-time high list catching Cramer's attention were TJX Stores ( TJX), which is having a heyday buying unsold inventory from other failing retailers, and Cigna ( CI), which is benefiting from ever-rising HMO costs. Cramer also noted that Cabot Oil & Gas ( COG) continues to grow its production and remains a takeover candidate.

Still others making the list include Amgen ( AMGN), which jump-started its growth by buying Onyx Pharmaceuticals ( ONXX); Lockheed Martin ( LMT), a defense stock that seems totally unfazed by the sequester; and Viacom ( VIA), which continues to be bought up by mutual fund managers.

Then there are those stocks on the 52-week high list, said Cramer, including FedEx ( FDX), Dollar General ( DG) and Netflix ( NFLX), along with Dow Chemical ( DOW) and Wynn Resorts ( WYNN).

Cramer said all of these stocks are rallying for different reasons, an eclectic mix that makes for one powerful rally.

Tesla in the Driver's Seat

Why is the stock of Tesla Motors ( TSLA) has been taking off like a rocket? Was it the positive reviews and awards the company's won? Was it the fact that Tesla owners just can't stop raving about their cars?

Of course not. Cramer said there's only one reason why Tesla shares have been soaring since May and that's because the company blew away the numbers.

Cramer said there were three things "known" to be true going into Tesla's last earnings call. First, the company was losing a fortune due to supply problems. Second, there was no real demand for its cars outside of a few enthusiasts. Third, Tesla would need a boatload of new financing to stay afloat.

In reality, Tesla announced it didn't lose money, it made $15 million in profit. It also increased its production to 21,000 vehicles for 2013. Then there were the higher margins and labor improvements that Wall Street never saw coming, along with Tesla announcing that it's stepping up its showroom growth by 50% to meet growing demand.

Tesla also let investors know the number of people who test drive the car and then actually buy one was far better than expected and the company was able to start offering financing for the first time, dramatically expanding its addressable market. If all that wasn't enough, foreign demand is ramping up.

But perhaps the biggest surprise on the conference call was the fact that capital spending is ramping down, not up, and Tesla is not planning to raise more funding.

All this great news was simply too much for Wall Street to take, said Cramer. With so many shares sold short, there's simply not been enough stock to go around to satisfy demand. When demand outstrips supply, prices go up. It's as simple as that, Cramer concluded.

Being Sure of Software Security Stocks

It's time to take a second look at software security stocks, Cramer told viewers. He said these stocks have been beaten down hard over the past 12 months thanks to the global economic malaise, but with cloud computing continuing to soar in popularity software security has never been more important.

Cramer said with Cisco's ( CSCO) recent security acquisition and Hewlett-Packard ( HPQ) CEO Meg Whitman also stating she's interested in this space, the time is now to get in ahead of any additional takeovers.

There are only three software security pure plays, noted Cramer, and a rising tide should lift all of these boats. He said Checkpoint Systems ( CKP) trades at 17 times earnings, although the company's software seems to have lost some of its luster, making it his least favorite.

Then there's Fortinet ( FTNT), which has been struggling to fight the economic weakness. Cramer said this company can deliver the goods and convince Wall Street that the turn is at hand.

But Cramer's favorite among the group is Palo Alto Networks ( PANW), a stock he liked at its IPO for a 71% gain but then advised selling just before the stock pulled back to nearly its IPO price. Cramer said it's once again time to buy this stock -- it has got the best growth of the three; investors will not only value it the highest, but will also make it a prime takeover candidate.

Lightning Round

In the Lightning Round, Cramer was bullish on Nike ( NKE), Under Armour ( UA), Blackstone Group ( BX), Ford Motor ( F), Lululemon Athletica ( LULU) and Enbridge Energy Partners LP ( EEP).

Cramer was bearish on KCAP Financial ( KCAP), Permian Basin Royalty Trust ( PBT), Northern Oil and Gas ( NOG) and US Airways Group ( LCC).

Mad Tweets

In the "Mad Tweets" segment, Cramer responded to questions sent via Twitter to @JimCramer.

Cramer said that he's not recommending Susquehanna Bank ( SUSQ), calling the Mid-Atlantic bank "fairly valued." He was also not a fan of IP telephony play Vonage ( VG), telling viewers to stay on the sidelines for now.

Cramer did endorse Denny's ( DENN) as a speculative part of your portfolio, and was also still a fan of Wendy's ( WEN) and AFC Enterprises ( AFCE), purveyors of the Popeye's chain.

When asked about Facebook ( FB), a stock Cramer owns for his charitable trust, Action Alerts PLUS, he said he still likes the stock, even after trimming his position a bit.

Cramer was not a fan of Cobalt International Energy ( CIE) however, telling viewers to stay away. He was also bearish on Monsanto ( MON), offering up Agco ( AGCO) as a better way to play that sector.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer said the shoe is officially on the other foot, with China and Europe lifting stocks higher and America dragging its heels and sending stocks lower. He said today's market action clearly showed the markets being buoyed by growth overseas, which was then helped by a decline in U.S. bond rates that spurred our housing stocks.

But Cramer said it won't be long before the sellers return to beat-down U.S. stocks, even as many companies stand to benefit from not only Europe and China but the emerging markets including Brazil.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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-- 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 CSCO, F and FB.

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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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 TheStreet.com. 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 TheStreet.com, 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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