Jim Cramer's 'Mad Money' Recap: Transformation Stories

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NEW YORK (TheStreet) -- Some companies can change their stripes, Jim Cramer said on "Mad Money" Thursday. Companies can improve their business for the better, making shareholders a ton of money in the process.

Case in point: Green Mountain Coffee Roasters (GMCR), which saw its shares soar on the news that Coca-Cola (KO) is taking a 10% stake in the firm and introducing a new soda machine to take aim at SodaStream (SODA).

Then there's American Airlines (AAL), a company that was bleeding red ink not too long ago but now has transformed itself to a fixture on the 52-week high list. AOL (AOL) is another reinvention story -- that company is now throwing off a ton of cash, controlling expenses and aggressively buying back shares.

Cramer called out Facebook (FB) and Walt Disney (DIS) as two more transformation stories. Facebook made a successful move into mobile, while Disney is now an entertainment powerhouse with the additions of Pixar, Marvel and, most recently, Lucas Films.

The market wants growth, Cramer concluded, and whether it stems from splitting up, making acquisitions or reinventing yourself with new products, shareholders will be the big beneficiaries.

Executive Decision: Dustan McCoy

For his "Executive Decision" segment, Cramer sat down with Dustan McCoy, chairman and CEO of Brunswick (BC), the boat and billiard maker that just delivered a two-cents-a-share earnings beat on an 8.6% rise in revenue. Shares of Brunswick are up 97% since Cramer first featured the company two years ago.

McCoy said Brunswick is actually home to many great brands, and the company lets all of its brands have their own identity and stand on their own. He said many consumers probably don't even know that Brunswick is a major player in boats, billiards, bowling and fitness products.

When asked about those four segments, McCoy said that despite popular belief, boating is crossing over into younger generations and is not something enjoyed only by older, wealthier people. In the fitness market, McCoy said Brunswick aims to be a high-end, high-quality player that sells into gyms and hotels. Only 10% of fitness sales are to the consumer market.

Turning to Brunswick's namesake, bowling, McCoy said a transition is afoot from bowling centers built around league play to centers built around fun. The company has opened three pilot centers around the notion of fun and social bowling and has seen a lot of success.

Cramer said Brunswick remains a terrific story, even in a tough market with lots of uncertainty about the economy.

Cramer's Playbook

For the next installment of his "Cramer's Playbook" series on financial literacy, Cramer answered the question of where younger investors should put their first $10,000 of investment.

For investors just getting started, Cramer said a Roth IRA makes a lot of sense because it's better than a traditional IRA for younger people. Roth IRAs do have some caveats, however, as you can only invest up to $5,500 per year and only if you make less than $127,000 per year if you're single.

As for where to invest, Cramer said he usually advocates investors have a portfolio of five to 10 individual stocks. But he admitted that picking your own stocks does take time and is hard work, something that may not appeal to everyone.

For those without the will or inclination for stock picking, Cramer said low-fee index funds are an excellent choice. Many actively managed mutual funds struggle to beat the averages every year, and those funds typically have higher fees -- which makes index funds a logical choice for those just starting out.

Lightning Round

In the Lightning Round, Cramer was bullish on Exelis (XLS), CalAmp (CAMP), General Motors (GM), Veeva Systems (VEEV) and SeaDrill Limited (SDRL).

Cramer was bearish on Clean Energy Fuels (CLNE) and Ford Motor (F).

Off the Tape

With Valentine's Day just a week away, Cramer went "Off The Tape" to speak with Neil Clark Warren, founder, chairman and CEO of the privately held eHarmony, the online matchmaking service that's about to expand into exciting new areas like matchmaking for your next job.

Warren said that it's taken eHarmony 40 years to figure out how people come together for a lifetime. Now that it has a good idea of what works, the company is excited to expand into new areas.

Warren went on to explain that 65% of people with jobs say they don't like the ones they have, and eHarmony may have a way to fix that. He said it all hinges on companies providing more insights into the jobs they need filled, along with the types of people they need to fill them and to whom they report for that job. With that information, eHarmony should be able to do the rest.

When asked what really creates chemistry between two people or a person and a job, Warren said that eHarmony has identified 29 dimensions that play a factor. He said if people have similar ambitions, values, intellect and humor, there's a much higher chance of real chemistry happening.

Cramer said that while eHarmony is not a publicly traded company, he sure wishes it was.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on the difference between Yelp (YELP), which saw its shares soar 19%, and Twitter (TWTR), whose shares plummeted 24%, in the recent session.

Cramer explained that these stocks are the perfect example of under-promising and over-delivering versus over-promising and falling significantly short. For Yelp, it's all about revenue growth, which is why its announcement of accelerating revenue growth was met with such enthusiasm.

But for Twitter, the metric to watch, we were told, was user growth, and that metric slowed as Twitter simply attracted fewer new users to its platform last quarter. Cramer said Twitter needs to get back on the growth path soon or its shares will never again see the multiple they were getting just a few days ago.

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 GM.

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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