Jim Cramer's 'Mad Money' Recap: Making Money

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NEW YORK ( TheStreet) -- Investing is about making money, not about having the best investment strategy, Jim Cramer told his "Mad Money" TV show viewers Monday as he commented on a recent tweet he received regarding Amazon.com ( AMZN).

The question was whether Cramer would recommend buying Amazon or whether the stock was overvalued. His answer? Yes on both counts.

Cramer explained that by any traditional metric shares of the ecommerce giant are wildly expensive, but that doesn't mean the stock shouldn't be bought. That may found counterintuitive, Cramer admitted, but to growth fund managers it's not about paying what a stock is worth today, it's about determining what a stock will be worth years down the road.

Amazon's mission of delivering more and more items at great prices to your door will remain intact for years to come, said Cramer. This was evidenced by today's news story depicting how Amazon experimented with unmanned aerial drones that could one day literally drop-ship items weighing five pounds or less right to your driveway.

That kind of innovation and continued industry dominance is why investors are willing to pay $400 a share for Amazon, not the company's current P/E ratio,said Cramer.

Amazon's valuation is only eclipsed by other "cult stocks" including Tesla Motors ( TSLA) and Solar City ( SCTY), two companies run by another visionary, Elon Musk.

Cramer said with Wal-Mart ( WMT) and Target ( TGT) both reporting stale earnings, it's only natural to think Amazon will be having a great holiday quarter. But that's not the reason to buy shares of Amazon, he continued -- it's to follow the money managers who are looking for growth and are counting on shares of Amazon being worth substantially more in years to come.

After all, stocks are worth what people are willing to pay for them, Cramer concluded, and in the case of these growth names, they're just not bound by traditional metrics.

Know Your IPO

In his "Know Your IPO" segment, Cramer looked into which of the recent 2013 initial public offerings can still be bought. He came up with six names that made the grade.

1. Antero Resources ( AR) -- Cramer said this stock saw an 18% pop on its IPO in October and can still be bought today.

2. Franks International ( FI) -- Cramer said this pipe and tubing provider jumped 19% on its open in August only to disappoint, missing its first quarter. That may only be a one-time problem, however, and Cramer is still a buyer on weakness.

3. Norwegian Cruise Line ( NCLH) -- Cramer said this stock jumped 30% on its IPO and hasn't looked back. The company has real growth and is the best operator in the business.

4. Pinnacle Foods ( PF) -- Similar to Cramer fave B&G Foods ( BGS), Cramer said this stock can also be bought as it's up 23% since its March IPO.

5. Volaris ( VLRS) -- One might not think a low-cost Mexican airline would be attractive in this market but Cramer said it is, especially since it's only up 1% since its IPO in September.

6. Navigator Gas ( NVGS) -- Cramer said this stock is up 5% on its IPO and another 5% in the aftermarket, making this weeks-old stock a buy, buy, buy.

Tracking the Laggards

It's that time to year again: Time to take a close look at the laggards in the Dow Jones Industrial Average to determine whether any of them are worth buying.

This year's worst five stocks include the venerable IBM ( IBM), Cisco ( CSCO), Caterpillar ( CAT), AT&T ( T) and Exxon Mobil ( XOM).

Cramer said owning either IBM or Caterpillar, which are down 7% and 6%, respectively, is outright dangerous because many investors will be selling off their positions in tax-loss selling throughout the end of the year. IBM has no real growth and has seen flat revenue for four years. Meanwhile, Caterpillar suffers from bad acquisitions and from having too much inventory in all the wrong places.

AT&T is up 3% on the year. While it offers a 5% dividend yield, Cramer said the company needs an acquisition to reignite growth.

Cramer said Exxon Mobil is the only buy of the lot, with shares up 8% for the year and production growth on the mend after a lull. The company also has a share buyback that's actually working, he noted.

Finally, there's Cisco, the company that delivered the worst quarter in the Dow. Cramer said Cisco needs a breakup and some new blood if it hopes to become competitive again. Cisco's buyback program is doing nothing to help the stock regain its footing.

Lightning Round

In the Lightning Round, Cramer was bullish on Pier 1 Imports ( PIR), Green Mountain Coffee Roasters ( GMCR), Affymetrix ( AFFX) and Salesforce.com ( CRM).

Cramer was bearish on Alliant Techsystems ( ATK), United Therapeutics ( UTHR), Anika Therapeutics ( ANIK) and Philip Morris International ( PM).

Executive Decision: Juan Ramon Alaix

In his "Executive Decision" segment, Cramer sat down with Juan Ramon Alaix, CEO of Zoetis ( ZTS), the animal health provider that's currently trading at 19 times earnings with a 15% growth rate.

Alaix said Zoetis is seeing a lot of grow from Brazil, Russia, India and China, all of which have emerging middle classes that are both adopting more pets and taking better care of the pets they already have. Meanwhile, with livestock, Zoetis continues to deliver products to diagnose, treat and vaccinate against many ailments for a host of animals.

Zoetis also has some new products coming in 2014, one of which is a prescription treatment for dog owners whose pets suffer from chronically itchy skin. Alaix said it will make a big difference in the lives of those pets and their owners.

When asked about Zoetis' spinoff from its former parent Pfizer ( PFE), Alaix said the split unlocked a lot of value for Pfizer shareholders. Now, as an independent company, Zoetis is creating even more value on its own thanks to its single focus on animal health.

Cramer said the Zoetis story is a great one that investors should notice.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer said with stocks like 3M ( MMM), IBM, OpenTable ( OPEN) and Yelp ( YELP) all falling big, investors may think the rally is over. That's just not the case.

Cramer said he's not worried about the markets because both the transports and the financials held their ground. You can invest in the banks again, he noted, with stocks like Goldman Sachs ( GS) hitting fresh 52-week highs. The transports, including FedEx ( FDX), are a great barometer for global growth and there's a lot of strength.

Even the decline in gold is not worrisome because many stocks continue to trend higher, Cramer said.

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

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At the time of publication, Cramer's Action Alerts PLUS had no position in stocks mentioned.

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."

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