Cramer's 'Mad Money' Recap: Back in the Game (Final)
(Story updated to add Cramer's Lightning Round picks, "Am I Diversified?" segment and concluding remarks.)
NEW YORK ( TheStreet) -- Your eyes are not deceiving you: Economic activity is picking up.
That's what Jim Cramer told his "Mad Money" TV show viewers Wednesday. Cramer said it's alright to buy into stocks, as long as investors follow some basic rules.
Making money on companies that you know and love is not a new concept, Cramer told viewers. Before the financial panic made everyone skeptical of just about everything, that's how a lot of money was made, he recalled.
Cramer said the time is right to get into stocks, as long as investors understand that this method of investing will make some money and lose some money depending on how its done. If you love a company's product and just run out and buy the stock, that's not investing, said Cramer. Investing is doing the homework, finding out if the company has earnings, and whether those earnings are on an upswing, he explained.
If earnings are on the rise, Cramer said investors must next look at the timing. Is it still early in the move, or have you missed the move? "Don't be late to the party," he said, which is why he always recommends buying in stages instead of all at once.
Buy some now, and if the stock pulls back, buy some more. If shares don't pull back, well then you're still in the black and have money ready for the next big market sell-off, he said.
"The retail investor is coming back," Cramer concluded, and it's time to buy American companies with great earnings when the timing is right.
Scrambling for Growth
In the "Executive Decision" segment, Cramer spoke with Tim Main, president and CEO of Jabil Circuit (JBL) , which just delivered a one-cent-a-share earnings beat with stronger-than-expected revenues which rose 8%. Shares of Jabil are 37% higher since Cramer last spoke with Main this past September.
Main once again painted a bullish picture for Jabil, saying that electronics makers that once relied on the U.S. and Europe for growth must now access global markets, and that's where Jabil provides the most amount of value. He said that Jabil is helping thousands of companies manage their supply chains and grow their businesses.
When asked whether growth is slowing in the enterprise markets, Main said that with government spending falling from last year's levels, enterprise spending has also gotten "choppy." He said momentum should build as 2012 unfolds as Jabil still has solid customer satisfaction and strong margins.