Jim Cramer's 'Mad Money' Recap: A Winning Quarter

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NEW YORK (TheStreet) -- The last day of the second quarter gave investors lots of ways to win, Jim Cramer told his Mad Money viewers Monday, and the third quarter might not be all that different. While the bears may point to June being the slowest month of the year, in 2014 all the major averages managed to eek out gains, and there were many ways to profit.

Over on the Nasdaq, Cramer noted that many of the high-value stocks including Tesla Motors (TSLA), FireEye (FEYE) and Workday (WDAY) all showed strong results. Meanwhile, Monday morning merger news made stocks like PPG (PPG) pop a quick

Cramer said many of the major investing themes of 2014 remain intact, things like the natural and organic food movement continue to power Hain Celestial (HAIN) and its peers higher. Activist investors are also still all the rage, with Nelson Peltz' interest in Bank of New York Mellon (BK) sending those shares up 3.4%. Cramer said it's not too late to get in on that deal.

Analysts upgrades have also been working, Cramer noted, with Micron Technology (MU) and Norfolk Southern (NSC) among the winners there.

Finally, there's the red-hot initial public offering market, with stocks like GoPro (GPRO) raging higher on its debut last week. Add to this a red-hot biotech group with stocks such as Mannkind (MNKD) powering higher and it's easy to see why Cramer can't wait to see what the second half of the year brings.

What Inflation?

If Federal Reserve Chair Janet Yellen isn't worried about inflation, you shouldn't be either, Cramer told viewers. He said the scaremongers will tell you inflation is running rampant, with everything from home prices to oil and gas to food and commodities on the rise. But the only inflation metric that matters is wage inflation, and we just don't have any wage inflation.

That's because companies continue to run lean, using automation and technology to steadily fire a small percentage of their workforce every year and still be more and more productive.

As for the other inflation worries, Cramer said they tend to self-correct over time. A few years ago a shortage of corn sent prices skyrocketing. A year later, farmers planted an abundance of corn and prices quickly returned to normal. He said things like coffee and even avocados should also follow this pattern.

There is inflation in airfares, Cramer conceded, but that's been caused by the many successful mergers in the industry. There's also inflation in oil and gas prices but that's due to political fears in Iraq and Ukraine, not because of anything economic.

Cramer said his bottom line is inflation just isn't on his radar, and it shouldn't be on yours either.

Executive Decision: Cliff Hudson

For his "Executive Decision" segment, Cramer spoke with Cliff Hudson, chairman, president and CEO of Sonic (SONC), our nation's fourth-largest restaurant chain with 3,500 locations in 43 states. Sonic last reported a 1-cent-a-share earnings beat on a 5.3% rise in same-store sales and higher gross margins.

Hudson said Sonic has implemented a number of programs helping its success, including upping the quality of the food, adding new menu items and rolling out a new, nationwide ad campaign that's given Sonic heightened brand recognition.

Hudson also touted the company's new technology initiatives, which are replacing antiquated point-of-sale systems with new interactive touch screens. He said the new systems are now a part of all Sonic's company-owned locations and will be rolling out to franchised locations next. He said the new system is driving sales higher, increasing customer satisfaction and will be part of the company's winning combination for the next three to four years.

When asked about food inflation, Hudson said Sonic has been able to combat rising food costs by both raising prices for some items as well as reducing costs in other areas. Overall, he said that inflation is not a major concern for Sonic.

Cramer said in the restaurant game there are winners and there are losers. Sonic is clearly one of the winners.

Executive Decision: Tim Timken

In his second "Executive Decision" segment, Cramer sat down with Tim Timken, chairman, president and CEO of TimkenSteel, the newly minted spinoff from Timken (TKR), which will begin trading Tuesday under the ticker "TMST." Current shareholders of Timken will receive one share of the new TimkenSteel for every two shares of Timken they currently own.

Timken said that as of tomorrow the two companies will be operating independently, with TimkenSteel providing low-cost steel to not only its former parent Timken but to a wide array of industries from autos and aerospace to oil and gas and industrial machinery. He said TimkenSteel is not a commodity player but focuses on high-profit niche products.

Timken also noted that as part of the split both companies are poised for growth, with strong balance sheets. TimkenSteel will be aggressively growing overseas, he added, and will have a break-even point around 50% of capacity, making the company able to weather the most severe of economic downturns.

Cramer said he remains a big fan of Timken and the new TimkenSteel, as growth stocks in the steel industry are very, very rare.

Lightning Round

In the Lightning Round, Cramer was bullish on Yahoo! (YHOO), EOG Resources (EOG), Gilead Sciences (GILD) and Ferrellgas Partners (FGP).

Cramer was bearish on Triangle Petroleum (TPLM), Atmos Energy (ATO) and Prospect Capital (PSEC).

Executive Decision: Rick Shearer

In a third "Executive Decision" segment, Cramer spoke with Rick Shearer, CEO of Emerge Energy Services (EMES), one of the companies that helps make hydraulic fracturing, and America's oil and gas renaissance, possible. Emerge is a master limited partnership with a 4.3% yield.

Shearer explained that Emerge Energy Services makes a specialized, high-quality fracking sand that holds up under extremely high pressure to hold cracks open while still allowing the oil and gas in the surrounding rocks to escape. When it comes to sand, size is important, Shearer continued. That's why Energe has big sand reserves in Wisconsin and Minnesota, where the best fracking sand can be found.

When asked about the company's MLP structure, Shearer said everyone shares in his company's success and there's been a lot of success to go around.

Finally, when asked about the environmental issues surrounding fracking, Shearer explained the industry has come a long way towards being safe and responsible, and it's important to separate the emotion from the facts. He said fracking has evolved for the better and continues to improve.

Cramer said Emerge Energy Services is just another way to play America's booming oil and gas revolution.

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 no position in stocks mentioned.

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