Cramer's 'Mad Money' Recap: Some Rays of Hope
Finally, when asked about the company's decision to divest its industrial properties, Alexander said the markets were looking for a more focused company, and by divesting its industrial properties the company got that as well as lower leverage.
Cramer said Weingarten is one REIT he should have recommended a long time ago.
South of the Border
Forget about China. Investors looking for a booming economy need to look no further than our friends south of the border. Mexico's economy is on fire and the best way to play the move is with railroad Kansas City Southern (KSU) , a stock that's just $6 off its highs.
Cramer said Kansas City Southern is his new favorite rail stock based simply on geography. The company first entered Mexico in 1996 and currently has a 6,600-mile network of rails that spans from Kansas south through the heart of Mexico's industrial corridor.
Autos will be a key driver for Kansas City Southern because Mexico's output of cars is expected to increase from 2.5 million a year to 3.5 million. This comes at a time when the railroad is reducing its costs, thereby expanding its margins.
Unlike many other rails that are levered to U.S. coal usage, Kansas City is not as cyclical and has exposure to the Bakken shale region of the country, where oil and gas is being shipped by rail because enough pipelines have yet to be built to get the precious cargo where it needs to go.
Shares of Kansas City Southern are up a modest 14% so far this year and trade at 18.9 times earnings with a 16% growth rate. Cramer said that's pricey compared to 12.8 times and 14% for Union Pacific (UNP) , but in this case investors get what they pay for... growth.
In the Lightning Round, Cramer was bullish on Michael Kors (KORS) , Morgan Stanley (MS) , Wells Fargo (WFC) , International Paper (IP) , Yahoo! (YHOO) , American Electric Power (AEP) , Tractor Supply (TSCO) and EQT Corp (EQT) .
Cramer was bearish on Cabot Oil & Gas (COG) .
Am I Diversified?
In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.The first portfolio included: Clean Energy Fuels (CLNE) , Cisco (CSCO) , Groupon (GRPN) , Broadcom (BRCM) and Banco Santander (SAN) .
Cramer said Cisco and Broadcom were too similar and suggested selling Cisco and Groupon and adding a biotech and an industrial stock to complete this portfolio.
Cramer said he'd sell General Mills and add in a bank and a drug stock to diversify this portfolio.