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NEW YORK ( TheStreet) -- How can investors tell a healthy market from a sick one? Jim Cramer told his Mad Money viewers Monday there are eight positive things investors can look for when seeking out a healthy bull market.
1. Shrugging off international woes. Cramer said the early weakness from the Greek elections was quickly reversed this morning.
3. Selective memory. Remember when McDonald's (MCD - Get Report) , a stock Cramer owns for his charitable trust, Action Alerts PLUS, reported a miserable quarter last week? The markets don't becuase that stock rebounded nicely today like nothing even happened.
5. Mergers are back. There's lots of merger and acquisition activity, especially in the struggling oil patch.
Know Your IPO
In his "Know Your IPO" segment, Cramer said investors need to grab a bite of the upcoming Shake Shack initial public offering, which will be coming public under the ticker SHAK.
Shake Shack is one of the visionary concepts from restauranteur and author Danny Meyer. The company has only 63 locations but 36 of those are in the U.S. Ultimately management sees 450 possible locations in the U.S., giving Shake Shack a lot of room for high-powered growth.
While savvy investors may note Shake Shack's same-store sales are only coming in at 1.2%, Cramer said the company compares stores that have been open for 24 months or longer while most other chains compare stores open for just 12 months or longer. That means that Shake Shack will naturally be more conservative as hot new locations are not being considered.
Hershey Is Still Sweet
With Hershey (HSY - Get Report) stock down over $2 a share from its highs after receiving a second analyst downgrade, Cramer said it's time to dive into this candy giant to analyze both the bull and the bear case for owning the stock.
According to the bears, shares of Hershey have simply run up too far and are now fairly valued without much upside. Analysts noted that shares are now trading in line with historical averages. Also, the bears are not happy with growing emerging market pressures and the fact that Hershey doesn't have a lot to offer in the high-end chocolate category, which is showing the most promise.
The bull case, however, focuses exclusively on Hershey's domestic business, where Hershey operates with less competition in an environment where commodity prices including sugar and oil are falling by the day. Cramer said that means Hershey's margins will be expanding at a time when U.S. consumers are more likely to splurge for a candy bar during their next trip to the gas station.
Cramer concluded the U.S. positives far outweigh any overseas concerns. Given that shares are down from their highs, he'd build a position going into the company's earnings this Thursday.
Executive Decision: Tom Falk
For his "Executive Decision" segment, Cramer spoke with Tom Falk, chairman and CEO of Kimberly-Clark (KMB - Get Report) , which just posted a 2-cents-a-share earnings miss on lower sales with weaker guidance, news that sent shares plummeting from $119 to $109 a share.
Falk said Kimberly has delivered $3.3 billion in shareholder return in the form of dividends and share repurchases, which is proof it's doing all the right things over the long term. He attributed this quarter's weakness to a strong currency headwinds, which stripped 8% to 9% from the company's top line and even more from its bottom line.
Falk said sales were strong in Russia, up 20%, and Kimberly is seeing double-digit growth in Brazil, to name a few bright spots. Kimberly is also benefitting from new technology because people are living longer and need new products to help them be more comfortable.
Cramer said all of the negatives have been baked into Kimberly but none of the positives, including falling input costs. He told viewers to be aggressive buyers into this weakness.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer said oil must hold its current $45 a barrel price or things are going to get ugly.
Commenting on a recent report that outlined the breakeven points for U.S. shale fields, Cramer said America's oil and gas industry is teetering at breakeven, with the Bakken shale netting a 1% return on investment and the Niobrara and Eagle Ford shales are returning 0%.
Given the many oil drillers need to keep on pumping in order to service their debt, breakeven is OK -- but prices cannot fall further. That may be tough with new supplies coming online from the Gulf of Mexico, he said, but the hope is economic activity will be spurred worldwide, helping prices rebound in time.
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-- Written by Scott Rutt in Washington, D.C.
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