Jim Cramer's 'Mad Money' Recap: Profiting From Down Days

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NEW YORK (TheStreet) -- When you know what you want to buy ahead of time, down days like today are made for you, Jim Cramer said on "Mad Money"  Monday after a lackluster day of Wall Street.

Cramer said he's noticed a disturbing pattern in the markets, one where the futures indicate a strong open first thing Monday morning and investors can't seem to help themselves from piling in. But as history has proven, buying first thing Monday morning when the markets are up big is never a winning move.

There is always a better time to buy later in the morning, Cramer continued, which is why he urged all investors to make a new year's resolution to never pay up on Monday mornings.

So what should investors buy when the market cools? Why not the stock of a company with a strong, long-term theme and a bankable CEO? Cramer said he's still a fan of his "four horsemen of biotech," which include Celgene (CELG), Biogen Idec (BIIB), Regeneron (REGN) and Gilead Sciences (GILD).

Cramer noted that Celgene remains his favorite among the group thanks to its strong pipeline of new drugs. Furthermore, the company received a downgrade today, sending shares lower and giving new investors the perfect opportunity to begin a position at a great price.

So don't buy on the open, wait for great American companies like Celgene to be put on sale and start buying, Cramer concluded.

Getting Sirius

The news that Liberty Media (LMCA) is snapping up the 48% of Sirius XM Radio (SIRI) it doesn't already own is a fabulous opportunity for investors, Cramer told viewers, but only if you do it the right way.

Cramer explained that Liberty helped save Sirius from bankruptcy back in 2009, a move that gave it 52% ownership of the satellite radio giant. This week's deal is a complicated one, one where Liberty will create a new class of stock, Liberty Class C, which will trade under the ticker "LMCC."

Owners of Sirius shares will receive .076 shares of the new Liberty for every one share of Sirius they own, for a ratio around 130:1. That ratio has caused some firms to downgrade Sirius, but Cramer called that thinking shortsighted.

Many experts agree that Sirius should be valued around $5 a share. That means Liberty is picking up a great $5 asset for just $3. Why would investors not want in on a deal like that?

Cramer called the move by Liberty "groundbreaking" because it allows for further consolidation and may allow Liberty to acquire a company like Pandora Media (P) or the privately held Spotify.

Normally Cramer advises selling on the news of a takeover, but with so much going for Liberty he said getting some of the new Class C shares would be a great way to buy into a great company with lots of potential.

I Love a Stock in Uniforms

With employment in the U.S finally staging a comeback, there's one industry that's poised to prosper right along with it, said Cramer --  the uniform business. Cramer explained that uniforms are needs for everything from construction to health care and more people working translates to more uniforms needed.

The largest player in the group is Cintas (CTAS), a well-known stock that's up 69% over the past two years. There's also the newcomer, Aramark (ARMK), and Unifirst (UNF), which focuses on industry specific needs.

Among the group, Cramer said he's betting on the largely undiscovered G&K Services (GNK), a $1.2 billion company.

Cramer described G&K as a "B" student that's now getting "A's." With its improving fundamentals and increasing gross margins, there's a lot to be excited about. The company also has a strong balance sheet, a 1.7% dividend and the possibility of a special dividend, similar to what it paid in 2012.

G&K trades at 19 times earnings with a 12% growth rate. That compares to Cintas with 19 times earnings and only a 10.6% growth rate. That makes G&K an undiscovered gem.

Lightning Round

In the Lightning Round, Cramer was bullish on LinkedIn (LNKD), Pepsico (PEP), HollyFrontier (HFC), Valero Energy (VLO), Magnum Hunter Resources (MHR), USG Corp (USG), Masco (MAS), Starbucks (SBUX), Bank of America (BAC) and Gogo (GOGO).

Cramer was bearish on Dr Pepper Snapple (DPS), Alon USA Partners (ALDW), Halcon Resources (HK) and Annaly Capital (NLY).

Learn From the Worst

What can investors glean from the worst-performing S&P 500 stocks of 2013? Cramer said his takeaway is that a falling stock price doesn't always signal an opportunity to buy.

That was certainly the case with Newmont Mining (NEM), which saw its shares fall 50% in 2013. Cramer said Newmont has three strikes against it: It has no growth, it has nightmarish execution and gold itself is getting hammered.

Cramer was also not bullish on Cliffs Natural Resources (CLF), which fell 32% last year. While Cliffs should be poised to do well in a global recovery, there's a reason this stock has the highest short interest of the entire S&P.

Cramer was also unimpressed with Edwards Lifesciences (EW), down 27%, Peabody Energy (BTU) and Teradata (TDC), both down 26%. He said Edwards is still more expensive that its peers while Peabody is falling victim to the President's war on coal. Meanwhile, Teradata is both cyclically and secularly challenged and losing on both fronts.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer followed up on his Meet The Press appearance this past Sunday where he questioned the President's policies on immigration, the environment and free trade.

Cramer said he was met with strong distain when he suggested some common-sense approaches to these policies -- things like waiting for American unemployment to fall before fixing immigration to let more foreign workers take those jobs, or not forcing companies to send jobs overseas by strangling them with environmental regulations.

Cramer said it doesn't seem like the administration wants to even debate these issues, which is a sad state of affairs because things like endorsing American natural gas could be a huge win for our country.

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 BAC and MAS.

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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