Jim Cramer's 'Mad Money' Recap: Buy, Don't Sell, on European Weakness

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NEW YORK (TheStreet) -- Weakness in Europe is not a reason to sell, it's a reason to buy, Jim Cramer said on Mad Money Thursday after the market panicked over a failing bank in Portugal. Cramer told viewers not to fear the European bear any longer because it's no longer 2008.

Gone are the days when a failing bank in Europe is a threat to the U.S. banking system, Cramer said. Thanks to former Treasury secretary Tim Geithner and his highly successful stress tests, U.S. banks are better capitalized, have far fewer bad loans and are able to withstand whatever may be ailing Europe on any given day. That's why money has been flowing into U.S. banks, Cramer noted. The European recovery is tepid at best.

That doesn't mean the U.S. stock market doesn't have its share of problems. Cramer said retail is still spotty, with Tractor Supply (TSCO) and Lumber Liquidators (LL) the most recent casualties. Housing remains slow while hiring may still be a long way from substantial gains.

But with many U.S. stocks on a tear, Cramer said Europe just isn't a reason to sell any more. There are plenty of U.S. businesses that are doing great and today's selloff just made them even better, he concluded.

Got Dean Foods?

Milk does your body and your portfolio good, according to Cramer, looking at Dean Foods (DF), one of our nation's largest milk producers. Cramer said the analysts are getting it wrong with Dean, and that means investors could catch big gains.

Cramer explained that everyone is expecting the worst from Dean Foods after the company's biggest cost, milk, skyrocketed 33% last year. But with the price of milk now on the decline, down 7% in June alone, Cramer said even if Dean posts on OK quarter its shares will be up big.

The analysts are simply expecting high milk prices to be the new normal, but Cramer noted that production in the U.S. is up 3%, while Europe and China are seeing even bigger gains as supply is catching up to the new demand. Also helping the equation are feed prices, which are on the decline. Cheaper feed, cheaper milk, Cramer noted.

Cramer said he's still a fan of WhiteWave Foods (WWAV), Dean's most recent spinoff, but with the price of milk on the decline it's Dean that represents the most value at the moment. He said the stock could see its 2013 peak of $22.50 a share, which would be a 35% gain from current levels.

Got milk? Get the stock, Cramer concluded.

Monster Merger Mania

With merger mania in full swing and Hormel Foods (HRL) offering up $450 million to buy the privately held Muscle Milk brand of protein shakes, Cramer said the time may be right to buy Monster Beverage (MNST), the number two energy drink maker just behind the reigning Red Bull.

Cramer explained that while the energy drink category was tarnished a few years ago over health concerns, much of that stigma has now past and sales are once again picking up. That makes Monster an attractive takeover target for companies looking for growth.

But since Cramer never recommends any stock on takeover speculation alone, he also noted that Monster has real growth but trades at less than 24 times earnings. He said it's clear the U.S. Food and Drug Administration is choosing not to regulate the nutritional supplement category, so it's likely that Monster will not be exposed to any regulatory risks anytime soon.

How much could Monster be worth? Cramer said with Coca-Cola (KO) paying up big for Vitamin Water, he feels Monster could fetch a 25% to 30% premium over where it trades today.

Executive Decision: Mark Sirgo

For his "Executive Decision" segment, Cramer sat down with Mark Sirgo, president and CEO of BioDelivery Sciences (BDSI), a small biotech that's pioneering rapid drug delivery systems. Shares of the company are up 80% in just the past three months.

Sirgo explained that while opiates are here to stay, BioDelivery's new drug, currently in Phase III testing, is unique in that it's far less addictive than morphine or Oxycodone. He said the company's new drugs have an anti-addictive agent as part of the formula, which reduces the feelings of euphoria that causes addiction in the first place.

So far, BioDelivery has seen two positive Phase III trials and Sirgo expects the drug to be nearing availability by the end of 2015. BioDelivery also has great partners helping it with development and marketing.

Cramer said BioDelivery is just another example of speculative biotechs that are giving patients terrific advances in medicine while rewarding investors at the same time.

Lightning Round

In the Lightning Round, Cramer was bullish on American Airlines (AAL), GW Pharmaceuticals (GWPH), GT Advanced Technologies (GTAT), Ensco International (ESV), Opko Health (OPK), Skyworks Solutions (SWKS), Nike (NKE) and Under Armour (UA).

Cramer was bearish on Annaly Capital (NLY), Transocean (RIG) and Cirrus Logic (CRUS).

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on the disappointing results from Tractor Supply, Lumber Liquidators and The Container Store (TCS).

Cramer said he's not buying The Container Store's excuse that high-end consumers were in a "funk" this quarter. He said that was not the case at Williams-Sonoma (WSM) or Restoration Hardware (RH), two other high-end home retailers.

As for Tractor Supply, Cramer said the estimates for this company are just too high, and that means its stock is as well. Finally, Cramer noted that Lumber Liquidators also offered excuses for its earnings miss and he's not buying those either. He said this company may be a one-hit wonder.

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 position in ESV and NKE.

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