Jim Cramer's 'Mad Money' Recap: The 2012 Stock Market All Over Again

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NEW YORK ( TheStreet) -- It's time to dust off your 2012 game plan, Jim Cramer said on Mad Money Tuesday. The markets are once again divided into two groups -- companies that are impacted by European events and those that aren't.

Yes, it's 2012 all over again, Cramer told viewers. Investors are dumping the industrial and technology stocks in favor of anything domestic, including health care, transportation, restaurants and entertainment. With the U.S. dollar continuing to strengthen, the banks and the consumer packaged goods stocks continue to slide, but names like Twitter (TWTR) , a stock he owns for his charitable trust, Action Alerts PLUS, GoPro (GPRO) , Tesla Motors (TSLA) and Netflix (NFLX) will likely be go-to names for money managers for the rest of the year.

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Cramer said he's also still a fan of Apple (AAPL) , another AAP holding, and Yelp (YELP) , as well as Home Depot (HD) and Macy's (M) .

What else is on Cramer's buy list? He said both Kroger (KR) and Chipotle Mexican Grill (CMG) are, along with health care, biotech, railroads, liquor and entertainment stocks like Walt Disney (DIS) .

Focus on domestic strength, Cramer concluded, and protect your gains by avoiding anything with exposure to Europe.

Stocking Up on Vitamins

There are too many bricks and mortar stores in America, Cramer told viewers, which is why the markets have been rewarding companies making acquisitions, merging to take out their competition and preserve their growth and margins.

That's why Cramer said he's a big fan of a recent report suggesting GNC Holdings (GNC) will acquire its rival, Vitamin Shoppe (VSI) . He said these two chains are suffering at the hand of intense competition, but a combined company would indeed be a thing of beauty.

Cramer said according to his own research, a full 100% of Vitamin Shoppe locations are within five miles of a GNC location. By shutting down half of those locations, a combined company could cut costs in half and still preserve almost all their sales. Even just merging back-end operations would be a huge win for GNC.

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Vitamin Shoppe shares trade at just 15.4 times earnings, Cramer noted, so even offering a 35% premium would still be a steal for GNC. Projecting $140 million in synergies, Cramer said the combined company would see a huge 40% increase in earnings.

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