Segment 1: News You Can Use
Cramer explained how not all important news is important to the stock market, and in 2012 you should look at how news impacts individual stocks rather than the market as a whole.
Cramer took phone calls on the following stocks:
Capital One Financial (COF): Cramer said it will get a premium to its peers if it can buy ING Direct.
Segment 2: Tech Turnaround
Cramer recommended Dell (DELL) as a turnaround play because they have focused on server and storage sales instead of the PC market and the stock is cheap. He thinks they will report excellent earnings on February 21, so he said it is okay to buy it now, but would rather buy it on a pullback.
Segment 3: Investor's Best Friend
Cramer recommended PetSmart (PETM) because people are spending more on their pets, they have a lot of higher end, exclusive products and services, and he thinks the stock is currently cheap.
Segment 4: Lightning Round!
Taiwan Semiconductor (TSM): Cramer is bullish on this stock because it is cheap.
Questcor Pharmaceuticals (QCOR): Cramer said he needs to go some homework on this stock and come back to it.
McDonald's (MCD): Cramer is bullish on this stock.
Sprint Nextel (S): Cramer said the bonds are better than the stock, but he won't recommend either.
Southern Copper (SCCO): Cramer is bullish on this stock.
Segment 5: Interview with Magnum Hunter Resources (MHR) CEO
Cramer said that this is a speculative play on America's increasing oil production because it owns oil assets in the Bakken and Eagleford shales, it is growing production and reserves quickly, and they reported a good quarter recently. He thinks there could be a lot of upside in the stock, so he talked to the CEO to find out more, and then said that it is terrific, but you should use limit orders and buy on a pullback.
Segment 6: Mad Money Overtime
Cramer said that Apple (AAPL) is cheap because a $55 per share earnings estimate for the year is reasonable, and it deserves at least a P/E ratio of 10. He thinks it is going to $550.