Jim Cramer's 'Mad Money' Recap: What's a Stock Gotta Do to Get Some Love?

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NEW YORK (TheStreet) -- This market has become one demanding animal, Jim Cramer said on "Mad Money" Tuesday. Cramer said that in order for a stock to rally it must beat on the top line, the bottom line and raise guidance to impress Wall Street -- and even then it's not guaranteed.

But even with many stocks in turmoil these past few weeks, there are a handful of names that are bucking the trend and making new highs. Under Armour (UA) is one of those, delivering substantially higher sales in what was thought to be a weak apparel market. Netflix (NFLX) is another winner, said Cramer, as that stock forced the shorts to run for cover with their accelerating sign-ups.

Cramer called out a few other winners as well, including Wynn Resorts (WYNN), which posted strong Macau numbers in the face of a slowing China, Facebook (FB), which delivered accelerating revenue growth and Google (GOOG), a stock Cramer owns for his charitable trust, Action Alerts PLUS.

Two more upside surprises included Chipotle Mexican Grill (CMG), which stunned the markets with a 9.3% rise in same-store sales and Michael Kors (KORS), which saw shares soar 17% on a unbelievable 24% pop in same store sales.

Cramer said these "magnificent seven" are the new market leaders and should be bought on any weakness.

Executive Decision: Sandy Cutler

For his "Executive Decision" segment, Cramer spoke with Sandy Cutler, CEO of Eaton (ETN), the Action Alerts PLUS holding that's up 285%, including reinvested dividends, since Cramer first got behind the stock in November 2008. Shares of Eaton are $10 off their highs, however, after the company posted mixed results.

Cutler pointed out sales were up 28% for the quarter, with profits surging 63%. But he also admitted that gross margins were less than expected. Cutler explained that Eaton didn't execute very well in its auto segment, and aerospace and electrical were also off 1 cent, totaling a miss of 7 cents a share on margins. Most of those issues are now behind the company, as is its $13 billion acquisition of Cooper Industries, which has now closed.

Among the remaining challenges for Eaton, Cutler noted utility spending on transmission will be flat in 2014 as many utilities continue to put their money into phasing out coal-fired generating facilities. Data centers are also expected to be flat for the year.

All is not lost for Eaton, however, with Cutler noting non-residential construction should be up 7% to 8% and a modest recovery continues in Europe. Even the U.S. truck market is improving, making Cutler bullish on trucks.

Cramer said it's clear Eaton took a pause, but Cutler explained why and he's confident about the company's future prospects.

Microsoft Needs More 'Wow'

Cramer had some harsh words for Microsoft's (MSFT) newly named CEO, saying that if the company wants to stay relevant, it needs to go on a spending spree today.

Microsoft just doesn't dazzle anymore, Cramer admitted, and hile old-school investors like himself still see a ton of value in the company, the truth remains that Microsoft, and its products are being left behind by the next generations.

Microsoft needs to "wow" in the social, mobile and cloud space, Cramer continued, and it needs to do so before Windows loses its dominant position.

Cramer said Microsoft has the cash where it could buy Netflix (NFLX) and pair it with the Xbox to become dominant in home entertainment. Or it could buy Yelp (YELP) and a handful of other cloud services and be a major player in that area. Or it could buy business services like Dropbox and keep its focus on the enterprise.

Cramer said it's too late for Microsoft to build these services alone. It needs to gain that social and mobile foothold now, and that means taking the short-term hit to earnings and making bold moves.

Lightning Round

In the Lightning Round, Cramer was bullish on Take-Two Interactive (TTWO), Kinder Morgan (KMI), Zoetis (ZTS) and DexCom (DXCM).

Cramer was bearish on Newmont Mining (NEM), Activision Blizzard (ATVI), Coca-Cola (KO) and Valero Energy (VLO).

Executive Decision: Martin Richenhagen

For his second "Executive Decision" segment, Cramer welcomed Martin Richenhagen, chairman and CEO of farm equipment supplier Agco (AGCO), which just delivered a six-cents-a-share earnings beat but whose shares are off 18% from their October highs.

Richenhagen said that despite having a fourth consecutive record year, he's still offering conservative guidance as competition heats up in 2014. That said, Richenhagen is still bullish on many areas of the globe including South America, where countries are providing $35 billion in investments to farmers.

Richenhagen is also upbeat on Agco's efforts in Africa, where the company was the first manufacturer to produce equipment on the continent. He expects production to more than double in 2014. Another bright spot is Russia, where a new partnership is beginning to bear fruit.

Cramer inquired about rewarding shareholders, and Richenhagen confirmed that Agco has authorized a $500 million share-repurchase program.

Cramer said shares of Agco have already gotten hammered, thus creating value, but added  the company needs a strong 2014 in order to see shares head higher.

Off the Tape

In his "Off The Tape" segment, Cramer sat down with Jon Brod, co-founder and president of Confide, a new off-the-record mobile messenger for IOS devices.

Brod said Confide is all about not leaving a digital footprint for sensitive topics. He demonstrated the service, showing how messages can only be read two words at a time, after which they are permanently deleted. Brod touted the service's end-to-end encryption that ensures that even the company cannot look into what is being sent between devices.

When asked about the company's business model, Brod said that after raising $1.9 million in seed funding, he's now focused on the product and not on making money at the moment.

Cramer said investors will be hearing more about this company.

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 ETN, GOOG.

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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