Jim Cramer's 'Mad Money' Recap: Stocks on Sale

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

NEW YORK (TheStreet) -- Investors need to tame their fears and take advantage of glorious days like today, Jim Cramer told his "Mad Money" TV show viewers Tuesday. You must act upon opportunities like Monday's selloff when the market offers a one-day sale with great prices on many stocks.

When the markets are in a panic, that's the time to circle back to the big, long-term themes, Cramer said -- themes like social, mobile and the cloud. Stocks such as Facebook (FB) and Google (GOOG) aren't affected by turmoil in Europe or trouble in the Ukraine.

Then there's biotech, with names like Isis Pharmaceuticals (ISIS). Are orphan drugs sensitive to the Ukraine? Nope. That's why Gilead Sciences (GILD), BIogen Idec (BIIB) and Regeneron (REGN) were all leaders today.

Other long-term themes include the revolution in oil and gas where companies such as Continental Resources (CLR) actually benefit from global tensions as oil prices rise.

Turmoil also makes people more frugal, Cramer added, which is good news for private-label food maker Perrigo (PRGO). Healthy eating isn't going out of style either, making Chipotle Mexican Grill (CMG) another good stock to own.

Wait for pullbacks like Monday and buy any of these themes when they're on sale, Cramer concluded. Panic is never a strategy but all you need is the courage to buck the trend and buy.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Dan Nathan over the chart of General Motors (GM), a stock Cramer owns for his charitable trust, Action Alerts PLUS. Last year, shares of GM were able to rally by 41%; so far this year, shares have fallen by 10%.

According to Nathan's analysis, GM needs to hold between $34 and $36 a share before any meaningful rally can occur. If shares were to break below $34, Nathan felt the June lows near $31 a share could be tested again.

Nathan also noted that shares of GM tend to be closely correlated to the yield on the 10-year U.S. Treasury bond. Rates below 3% have been bad for the stock but with yields over 3%, things will likely be very positive.

Cramer agreed with Nathan's analysis, saying sales are picking up for GM. Now that the U.S. government has sold its stake, there's a lot more gain to be had for the company. If shares are able to extend above $39 a share, then the stock could easier rise to its highs near $42.

Keep on Trucking

The bull market in heavy-duty trucks continues to motor on, Cramer told viewers. Thanks to new fuel efficiency standards from the Obama administration, these stocks should keep on trucking for years to come.

Cramer said there are few key players in the space, including Cummins (CMI), a perennial favorite and Action Alerts PLUS name, along with Paccar (PCAR) and Navistar (NAV).

With the average age of a heavy-duty truck in America pushing 6.7 years, Cramer said there was already a big replacement cycle just getting started. Now, with increased fuel standards, that cycle will only get bigger. So which stock to own? Cramer said among the group he prefers Paccar, which derives 48% of its sales from the U.S. market and nearly 80% from the heavy-duty segment in particular.

Cramer noted that Navistar has seen more than its fair share of struggles recently, with the EPA declaring Navistar's latest engines wouldn't meet the new standards. That news caused the company to lose 13% of its market share. Cramer said with so many missteps, he'd avoid Navistar for the foreseeable future.

But Navistar's pain is Paccar's gain as the company has picked up much of Navistar's market share. Cramer said he wouldn't chase shares higher but as the market pulls back he'd definitely be a buyer.

Lightning Round

In the Lightning Round, Cramer was bullish on Exact Sciences (EXAS), AT&T (T) and Verizon (VZ).

Cramer was bearish on Invesco Mortgage Capital (IVR), Synovus Financial (SNV) and Arcos Dorados (ARCO).

Executive Decision: Harold Hamm

For his "Executive Decision" segment, Cramer spoke with Harold Hamm, chairman and CEO of Continental Resources (CLR), a stock that's up 135% since Cramer visited the company on location in the Bakken shale back in August 2011.

Hamm said the situation in Ukraine is creating volatility in the oil market, which is unfortunate for consumers. He said the U.S. could step in and be a world leader in the oil market but current bans on oil exports prevents that from happening.

Hamm said that for nearly 50 years the U.S. was content using everyone else's oil, which only led to underdevelopment of our own assets. But now with a 125-year supply of natural gas and rich oil fields of our own, it's time to start producing our own energy.

When asked about the infrastructure needed to get oil out of rich areas like the Bakken, Hamm said the delays in the Keystone XL pipeline have been terrible for the industry. When Keystone was announced, all other projects got canceled. Now, with Keystone continually delayed, no one is stepping in to fill that void. That's why nearly 70% of the Bakken oil still travels via rail to the refineries.

Cramer said Continental remains a great growth stock and one he highly recommends.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on the proposed spinoff of Red Lobster from Darden Restaurants (DRI). He said this company doesn't need to break up with Red Lobster, it needs to break up from its CEO.

Cramer said while he's usually a big fan of spinoffs as a way to create value for shareholders, loading up Red Lobster with debt and selling it to an unsuspecting public would simply be a terrible idea, which is why the activist investors are furious.

There was a time when Darden was a great performer, Cramer noted, one that offered consistency and a nice stock buyback. But it's now clear, by its own admission, that Darden simply has no idea how to fix Red Lobster and would rather jettison the franchise rather than saying goodbye to the man who put the company in this predicament, the CEO.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

-- 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 positions in CMI, FB and GOOG.

More from Jim Cramer

Snap, Gilead Sciences, Cronos Group: 'Mad Money' Lightning Round

Snap, Gilead Sciences, Cronos Group: 'Mad Money' Lightning Round

The Trouble With Trump's Tariffs: Cramer's 'Mad Money' Recap (Friday 6/22/18)

The Trouble With Trump's Tariffs: Cramer's 'Mad Money' Recap (Friday 6/22/18)

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Jim Cramer: Some Industrials Stocks Are Becoming Great Values

Jim Cramer: Some Industrials Stocks Are Becoming Great Values

Jim Cramer Reacts to Toni Sacconaghi's Latest Tesla Note

Jim Cramer Reacts to Toni Sacconaghi's Latest Tesla Note