Jim Cramer's 'Mad Money' Recap: The Analysts Are Wrong

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NEW YORK (TheStreet) -- The analysts are trying to get you out of stocks at just the moment you should be staying in, Jim Cramer said on "Mad Money" Wednesday. Cramer said after years of being criticized for being too bullish, the analyst community now appears to be permanently skeptical.

That was the case with with two Cramer faves, United Technologies (UTX) and Honeywell (HON), the latter a stock Cramer owns for his charitable trust, Action Alerts PLUS. He said both stocks received downgrades today, panned for, of all things, being too broadly loved on Wall Street. This came at a time when both companies are offering investors growth, dividends and stock buybacks.

Wendy's (WEN) also received a downgrade today despite only being a fraction of the way into its turnaround efforts, which are bringing new restaurants and a new menu to its stores. Why sell now? asked Cramer.

The banks is another sector coming under fire by the analysts, Cramer noted, just as bad loans are winding down and the net interest margins are ramping higher. KeyCorp (KEY) and U.S. Bancorp (USB), two more Action Alerts PLUS names, also got tagged with unwarranted downgrades.

Even Twitter (TWTR) has not been immune to the analysts' new-found pessimism, Cramer concluded.

Executive Decision: Charif Souki

For his "Executive Decision" segment, Cramer sat down Charif Souki, chairman, president and CEO of Cheniere Energy (LNG), the company building two export terminals to take advantage of America's growing abundance of natural gas.

Souki said Cheniere is now giving investors multiple ways to invest -- with the original Cheniere shares, trading under the ticker LNG, along with Cheniere Energy Partners (CQP), a master limiter partnership for retail investors, and Cheniere Energy Partners Holdings (CQH), which is geared for institutional investors.

When asked whether the demand for natural gas is slowing, Souki said there is an unlimited number of potential customers for Cheneire as long as there's such a large price differential between gas and oil. Our country still burns off more excess oil through flaring than it uses, Souki noted.

When will America wake up and embrace its own natural resource? Souki said the markets are moving in that direction and it's better to let them progress naturally rather than force a change through legislation.

Finally, when asked about competition, Souki said that no one but Cheniere has broken ground on an export terminal, giving his company a huge first-mover advantage.

Cramer continued his recommendation of Cheniere.

Yelp for Joy

Not many companies can deliver what the customer wants and what Wall Street wants at the same time, which is why ratings Web site Yelp (YELP) has been on fire since its initial public offering.

Cramer said Yelp is the real thing, one of the few companies that has the trifecta of social, mobile and the cloud and is making money hand over fist in all three areas.

Remember the Yellow Pages, that thick book that was delivered to your front door every year by the phone company? If you had any hopes of running a successful local business, you had to advertise in the Yellow Pages. The Yellow Pages of today is Yelp,  plain and simple, said Cramer.

Unlike the Yellow Pages, Yelp is not regulated by the government, meaning it can continue to grow like wildfire. Cramer said Yelp's business is worth "substantially and dramatically" more than it is today, even with shares up 8% in today's trading.

Lightning Round

In the Lightning Round, Cramer was bullish on BB&T Bank (BBT), Franks International (FI), BioMarin (BMRN), Genuine Parts (GPC), Snap-on (SNA), Core Labs (CLB) and Exact Sciences (EXAS).

Cramer was bearish on Michael Kors (KORS), MannKind (MNKD) and Universal Display (OLED).

Curb Your Skepticism

As 2014 gets rolling, Cramer told viewers they need to check their emotions at the door and not become too skeptical, a mistake even pros like Cramer can fall victim to from time to time. Excessive skepticism is not a good thing, said Cramer, and can cost you a lot of money.

That was the case when Cramer told investors to sell Walgreen (WAG) last year, after the company got into a tiff with Express Scripts (ESRX) and started making a slew of acquisitions. After falling from $40 to the high $20s, Cramer advised selling Walgreen, a price that later proved to be the bottom; the stock nearly doubled from those levels.

The former Shaw Group was another Cramer pan after the nuclear disaster in Japan. Cramer figured that Shaw, which built nuclear plants, would surely falter. While shares did sink 10% from his sell recommendation, the company was acquired by Chicago Bridge & Iron (CBI) for a 72% premium.

What's the lesson from these examples? That well-run companies with terrific CEOs deserve the benefit of the doubt and skepticism doesn't pay, Cramer concluded.

Am I Diversified?

In the "Am I Diversified" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.

The first portfolio included Celgene (CELG), 3M (MMM), Salesforce.com (CRM), JPMorgan Chase (JPM) and Valero (VLO).

Cramer said this portfolio was picture perfect.

The second portfolio's top holdings included Hewlett-Packard (HPQ), American Capital Agency (AGNC), Johnson & Johnson (JNJ), Bank of America (BAC) and Facebook (FB).

Cramer said this portfolio can't have American Capital and Bank of America and advised selling American Capital in favor of an industrial like Honeywell.

The third portfolio had Verizon (VZ), AT&T (T), Exxon-Mobil (XOM), PDL BioPharma (PDL) and Altria (MO) as its top five stocks.

Cramer said this portfolio can't have both AT&T and Verizon and needs a stock like Clorox (CLX).

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, HON, JNJ, JPM, KEY and USB.

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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