Jim Cramer's 'Mad Money' Recap: The Enemy Is Us

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


NEW YORK (TheStreet) -- We have met the enemy,  and it's your fellow shareholders, Jim Cramer said on Mad Money Monday. There are many threats to the bull market right now, Cramer said, but none are more dangerous, or more unpredictable, than skittish shareholders.

Cramer said the froth in parts of the market is worrisome, as is the loss of growth in China and the potential impact of Russian sanctions on European growth. But as Monday's market action proved, shareholders willing to sell their stock at the drop of a hat -- those who are merely renters rather than owners -- these are the ones putting most stocks at risk.

That's how a great company like Gilead Sciences (GILD) can slide 13% in just a month, or how a company like Splunk (SPLK), a best-of-breed player in the red-hot big data analytics space, can fall 15%.

Cramer said Splunk is taking a page from the Amazon.com (AMZN) playbook, foregoing profits to reinvest in itself to take marketshare. Yet, shares shed 8% today alone on the heels of relentless insider selling. Splunk has no dividend or stock buyback program to help stem the losses, he continued.

But there's another player in the big data space that's not falling, one that trades at just 10 times earnings with a 2% yield and a terrific buyback program, with Warren Buffett as a notable shareholder. That company, IBM (IBM), has shareholders who are stable and confident, Cramer explained, something Splunk desperately needs for its shareholder base.

Executive Decision: Michael Reger

For his "Executive Decision" segment, Cramer spoke with Michael Reger, chairman and CEO of Northern Oil & Gas (NOG), one of the laggards in the American oil and gas renaissance, with shares falling nearly 50% in a time when others, like Continental Resources (CLR), have risen by 72%.

Reger explained that Northern has access to 187,000 acres in the heart of the Bakken shale and has participated in over 2,000 wells since 2006. However, as a non-operating partner, his company merely provides financing for drilling in return for a stake in its overall output.

Reger said that being a non-operator means his company can be more nimble with its capital expenditures; as long as activity in the region is robust, the ability to grow and prosper will be robust as well.

Reger said Northern will have over $400 million to invest in new wells but his company has become more selective with those wells in order to achieve higher returns as costs continue to decline.

Reger concluded by saying that it's extremely frustrating to see his company's shares trading for so little given their past performance and future opportunities. Cramer agreed, and encouraged viewers to read Northern's most recent presentations on its Web site as they "do their homework" on the company.

Checking Into Hotel Stocks

With the news that the privately held AirBNB may be wroth upwards of $10 billion, Cramer said there's been renewed interest in all of the hotel and travel stocks. While investors can't yet get a piece of AirBNB -- which is revolutionizing the market for renting, borrowing and sharing otherwise unused spaces -- there are still other attractive investments out there.

Cramer said he's still a fan of Starwood Hotels & Resorts (HOT) because this company has an attractive business model and plans to have 85% of its future growth in the red-hot emerging markets.

In the online space, Cramer said he still likes Priceline.com (PCLN) because that company trades at just 19 times earnings with nearly a 20% long-term growth rate. That's a steal, he said, given that the S&P 500 trades at an average 17.5%.

Then there are the newcomers to the space, HomeAway (AWAY) and Trip Advisor (TRIP). Cramer said he'd be a buyer of either of these great companies with a preference towards HomeAway.

Lightning Round

In the Lightning Round, Cramer was bullish on Stewart Information Services (STC), Polaris Industries (PII), Isis Pharmaceuticals (ISIS) and Enterprise Products Partners (EPD).

Cramer was bearish on Westport Innovations (WPRT), Kandi Technologies (KNDI), Skyworks Solutions (SWKS) and Boardwalk Partners (BWP).

Executive Decision: Lee Boothby

For his second "Executive Decision" segment, Cramer stuck with the oil and gas theme and spoke with Lee Boothby, chairman, president and CEO of Newfield Exploration (NFX), a company that's selling its overseas assets in order to double down on its U.S. assets. Shares of Newfield are up 35% since Cramer last checked in a year ago.

Boothby said the U.S. is the "place to be" and he hopes to have the last of Newfield's Chinese assets sold by the end of 2014, making them a 100% domestic operator thereafter. He said Newfield has a strong inventory of opportunities and this is an exciting time for the industry and the nation.

For Newfield, it was a strategic decision to refocus on the U.S. Boothby noted that new technology and a renewed sense of entrepreneurship in America is giving our nation the greatest energy gift of the past 100 years.

When asked about the bottlenecks getting their product to market, Boothby said Newfield hasn't seen many issues and thanks to great planning, they're able to move capital and resources where its needed.

Cramer said that Newfield is yet another great American success story and, yes, they're hiring.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer said there is one thing that can kill the bull but it's not the Federal Reserve -- it's too much supply.

Cramer said there has been a onslaught of terrific cloud and biotech initial public offerings of late, but things won't be this rosy forever. He said six months from now, when lockups expire, the markets will likely see a huge wave of selling and secondary offerings that could drown the bull, at least for a while.

There are only so many buyers in any given market, Cramer reminded viewers, and those buyers can easily be overwhelmed by a ton of shares for sale. That's why investors need to be careful and keep their eye on the calendar.

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 no positions in stocks mentioned.

More from Jim Cramer

Jim Cramer: Schlumberger Predicted the Rise in Oil Prices

Jim Cramer: Schlumberger Predicted the Rise in Oil Prices

Jim Cramer on Zillow's New Business: Buying and Selling Homes

Jim Cramer on Zillow's New Business: Buying and Selling Homes

Jim Cramer: Wabtec Deal Gives General Electric Optionality

Jim Cramer: Wabtec Deal Gives General Electric Optionality

Jim Cramer on the Markets: It's Natural to Have Some Profit Taking

Jim Cramer on the Markets: It's Natural to Have Some Profit Taking

Video: Jim Cramer on the Markets, Oil, General Electric, Zillow and Micron

Video: Jim Cramer on the Markets, Oil, General Electric, Zillow and Micron