Segment 1: The Obama Rebound
Cramer said that Obama had shown that his bark is worse than his bite, and that he can't keep stocks down forever. He pointed to the healthcare sector as evidence, and said that he thinks the banks will follow the lead of the healthcare sector because they have moved higher 2 days in a row after Obama knocked the sector down. He recommended buying Goldman Sachs (GS) and JP Morgan Chase (JPM) because their stocks have been hurt by Obama's rhetoric, but Obama and Congress don't actually have the ability to do much damage to their earnings because they can't pass any harmful legislation. He then looked at some stocks in the healthcare and credit card businesses to see how they reacted to Obama's attacks and then recovered, and ended by saying that this is a buying opportunity for GS and JPM.
Segment 2: Budget Planning
Cramer said the biggest winners in Obama's budget for next year are the construction stocks, and he recommended URS (URS) as a way to play this move. It gets 91% of its sales from the U.S., and it works in the environmental services, military services, training operations, maintenance, and nuclear site management businesses, so it is in great position to make a lot of money from the government in the next year. He also likes that 80% of their infrastructure business is engineering services, so it will make money sooner than its competitors who focus on construction. Another reason he is bullish is that it has less exposure to China than other construction stocks, and does a lot of work with the oil and gas sector, plus the stock is cheap at 12.7 times 2011 earnings, a 10% growth rate, and a backlog that is four times its market cap.
Segment 3: Off the Charts
Cramer looked at the chart of Qualcomm (QCOM) because it is an mobile internet play that reported a terrible quarter last week, and he wanted to see if the selling would continue or not. He looked at the daily chart and pointed out that the selling should be mostly over now because the volume is weakening. The stock moved higher on Monday, and technical analysts think that it is at a bottom unless it goes below $38.50, so this is a good time to buy. Cramer said that he disagrees with the premise that a stock can be a buy at one price, but a sell at a lower price, pointed out some of the problems with the quarter, and then said that he bought some more because he thinks the stock is cheap at 16 times earnings and it has a great balance sheet, but he needs to see 1 or 2 good quarters before he will believe in the stock again.
Segment 4: Lightning Round!
Zimmer Holdings (ZMH): Cramer said this stock is OK, but Stryker (SYK) is better.
3Com (COMS): Cramer said to sell this stock because it accepted a buyout offer and there is no upside, and he recommended Akamai Technologies (AKAM) or F5 Networks (FFIV) instead.
Ebix (EBIX): Cramer said that this stock got knocked down because there were high expectations for the quarter.
Merck (MRK): Cramer is bullish because he likes their dividend and their partnership with Schering Plough (SGP).
Clean Energy Fuels (CLNE): Cramer is less optimistic about this stock because Obama didn't mention natural gas during the State of the Union.
Microsoft (MSFT): Cramer said that this is a good stock, but he likes Intel (INTC) and Apple (AAPL) better.
Motorola (MOT): Cramer said that he would not buy this stock because there is no catalyst, but you can hold onto it if you already own it, and he would rather own Apple (AAPL).
Segment 5: Mad Money Mail
Hewlett Packard (HPQ): Cramer is bullish on this stock because he likes the CEO.
Netflix (NFLX): Cramer is bullish on this stock but said you can take some profits if you owned it for a while because it has moved up so much.
SanDisk (SNDK): Cramer is bearish on this stock because all of the good news they reported was already priced into the stock, and he thinks there is an overcapacity of flash memory coming.
Broadwind Energy (BWEN): Cramer is bullish on this stock because it is cheap, and it is a good play on Obama pushing wind power.
Wynn Resorts (WYNN): Cramer is bullish on this stock because of their casino in Macau, but said that he is nervous about China because of their economic slowdown.
