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Cramer's 'Mad Money' Recap: Opportunities Abound (Final)

Written by: Scott Rutt 04/23/12 - 7:03 PM EDT
Tickers in this article: ETN WMT LULU ROST

The problem with Splunk, said Cramer, is that the company has no earnings and isn't forecast to have any until 2014. That leaves shares of Splunk trading at an insane 20 times sales, which Cramer said bluntly "is insanely expensive." As a comparison, cloud computing giant Salesforce.com (CRM) trades at just nine times sales, but that company is established and also very profitable.

Then there's Tumi, which saw its shares pop 47% on their first day of trading. Cramer called this stock "downright dangerous." Tumi does have a terrific brand and smart people running the company, he explained, but at 35 times earnings, the company is simply not growing fast enough to warrant its newfound valuation. Shares of Lululemon Athletica (LULU) and Michael Kors (KORS) are both trading a high valuations, Cramer noted, but also have the growth to justify their share prices.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer made the pitch for yield, dividend yield that is, calling it insurance for your portfolio.

Cramer said that no one would buy a home without insurance and that's taking into account all of the safeguards that are in place to prevent a fire or flood, like strict building codes and smoke detectors. Yet many investors are willing to load up their portfolios with sexy, high-growth stocks that may get hammered on the international news of the day.

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Cramer said that stocks like Verizon (VZ) and Duke Energy (DUK) both have zero exposure to Europe and China, yet they offer investors excellent protection against market selloffs like today.

Lightning Round

In the Lightning Round, Cramer was bullish on Pengrowth Energy (PGH) and Verizon (VZ) .

Cramer was bearish on Hess (HES) , FARO Technologies (FARO) , AT&T (T) , Gannett (GCI) and Sprint Nextel (S) .

--Written by Scott Rutt in Washington, D.C.

To contact the writer of this article, click here: Scott Rutt.

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