Jim Cramer's 'Mad Money' Recap: Faith in the Market

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NEW YORK (TheStreet) -- You have to have faith if you're going to invest in the stock market, Jim Cramer told his "Mad Money" viewers Tuesday. Investors need to believe the companies they invest in will deliver on their promises. Fortunately, for some companies believing is not hard at all.

That's certainly the case with Regeneron (REGN), Cramer told viewers. This is one company that's repeatedly gotten it right despite analysts' predictions that the upside has already been "baked in" to the share price. Regeneron has deliverered a 5,900% return over the past nine years.

Allergan (AGN) is another example of faith, Cramer continued. This stock fell last year from $115 to $85 on fears of generic drug competition. But six months ago Allergan's CEO appeared on Mad Money, telling viewers that the generic challenges were not a problem. Allergan's stock is up 34% since that appearance.

Cramer also offered a tip of the hat to Google (GOOG) for its acquisition of Nest, and Hain Celestial (HAIN) for its purchase of Tilda, makers of basmati rice. He was also bullish on Tesla Motors (TSLA), a company that's still impossible to value but also one with a CEO who's impossible to ignore.

When can faith go awry? Cramer said he was wrong to trust Timken (TKR), which delivered the worst pre-announcement this year, and also GameStop (GME), which neglected to mention its significant short-term challenges -- news that sent that stock down 19% in today's trading.

Executive Decision: Leonard Schleifer

For his "Executive Decision" segment, Cramer spoke with Leonard Schleifer, president and CEO of Regeneron, which today announced continued successes with its drug Eyelea as well as a promising pipeline that includes drugs for high cholesterol, arthritis and asthma among others.

Schleifer said that despite analysts' calls to the contrary, Eyelea has lots of room to grow thanks to favorable demographics, new geographies and, he hopes, new indications for the drug later in 2014. Regeneron is also making progress on its anti-cholesterol drug, for which the company hopes to file for approval early next year.

In addition, Regeneron is developing promising treatments for the epidemic of allergic diseases that are developing, as well as treatments for genetic ailments.

When asked about the possibility of re-incorporating in Ireland, where the company already has offices, Schleifer said Regeneron loves New York, where it is headquartered, and has no plans to leave.

Cramer said Schleifer has made a lot of money for shareholders and he, for one, is sticking with the stock.

Executive Decision: Greg Wasson

In his second "Executive Decision" segment, Cramer spoke with Greg Wasson, president and CEO of Walgreen (WAG), our nation's largest drugstore chain with 8,500 locations. Shares of Walgreen were up 58% last year.

Wasson said that Walgreen's goal is to take on a greater role in providing convenient health care to the public. In addition to pharmacists dispensing medications, Walgreen is also adding in-store nurses to offer vaccinations, screenings and even treat common ear aches and sore throats.

Walgreen is also about value, Wasson noted, which is why the company introduced over 2,000 private-label items last year. Consumers remain cautious, he said, and are looking for more value from brands they trust.

Wasson said over 63% of the American population now lives within five miles of a Walgreen's, which means that more than any other brand, the company is positioned to achieve its goals. The company also has a growing international presence thanks to its acquisition of Alliance Boots, which operates in 25 countries.

Cramer said Walgreen remains a terrific story that is executing perfectly.

Lightning Round

In the Lightning Round, Cramer was bullish on VMware (VMW), Novo Nordisk (NVO), Starbucks (SBUX), General Electric (GE), Bristol-Myers Squibb (BMY), Netflix (NFLX) and Home Depot (HD).

Cramer was bearish on TiVo (TIVO), EMC (EMC) and HD Supply (HDS).

Executive Decision: Richard Pops

For his third "Executive Decision" segment, Cramer spoke with Richard Pops, chairman and CEO of drug maker Alkermes (ALKS), another long-term Cramer fave.

Pops commented on Alkermes' recent partnership with, of all things, a mutual fund, saying that drug companies need a strong source of capital and a strong shareholder base and now Alkermes has a long-term strategy for both. He said his company has five or six blockbuster drugs in development and are now funded to bring them all to market.

Pops explained how its drug, ALKS 5461, is aiming to treat the five million patients a year who are not responding to traditional anti-depressant drugs. Meanwhile, ALKS 3831 hopes to offer those suffering from schizophrenia a drug that requires just six injections a year.

Alkermes is also changing the game when it comes to treating drug addiction with its drug Vivitrol. Pops said Vivitrol has patent protection for many years to come, giving his company enough time to chip away at the conventional thinking towards drug addiction treatments and to prove the drug's effectiveness.

Cramer said he remains a believer in both Pops and Alkermes.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on the significance of Google's acquisition of Nest, maker of smart thermostats and, most recently, smart smoke detectors.

Cramer recalled how Home Depot's CEO recently told him how new products such as Nest's are driving growth at his stores. That's a clear indication customers are clamoring for what Nest has to offer, said Cramer, which makes Google's purchase an easy decision.

Smart home products, like those Nest makes, only make handheld devices more valuable, which is something Google knows all too well.

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 GE and TKR.

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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