Positive changes at Alcoa (AA) / Cramer's Mad Money Stock Picks Recap

Wednesday, Cramer said it may take the markets a full six months to see the positive changes at Alcoa (AA), but that gives smart investors time to get in now ahead of the move.

Bullish
Alcoa (AA) (featured)
Cimarex Energy (XEC) (discussed)
Concho Resources (CXO) (discussed)
Domino's Pizza (DPZ) (Lightning Round)
DuPont Fabros Technology (DFT) (Lightning Round)
EOG Resources (EOG) (Lightning Round)
Fiat Chrysler (FCAU) (Lightning Round)
Intel (INTC) (discussed)
Mastercard (MA) (Mad Mail)
Netflix (NFLX) (discussed)
Pattern Energy (PEGI) (Mad Mail)
Pembina Pipeline (PBA) (Mad Mail)
Primerica (PRI) (Lightning Round)
Shake Shack (SHAK) (discussed)
SunEdison (SUNE) (Mad Mail)
Wells Fargo (WFC) (Lightning Round)

Bearish
Accelerate Diagnostics (AXDX) (discussed)
Chesapeake Energy (CHK) (Lightning Round)
SpringLeaf (LEAF) (Mad Mail)

5
NEW YORK (TheStreet) -- The world's largest aluminum producer, Alcoa (AA - Get Report) , reports earnings next week, and TheStreet's Jim Cramer explains why investors should buy the stock on a sell-off.

Cramer calls Alcoa a multi-year story because CEO Klaus Kleinfeld is transitioning the company to a proprietary company from a commodity company. He notes that Alcoa has been getting more involved in airplane parts. He also points out Alcoa is the largest screw company in the world and these fasteners are all over airplanes.

Having said that, Cramer notes the actual aluminum prices have not been good, so the stock has just been "hanging in there." He says what he likes most about Alcoa is that Kleinfeld breaks down everything that the company sells, which covers many areas such as canning and the back of the Apple (AAPL - Get Report) iPad because aluminum is so prevalent in our society.

Must Watch: Cramer: If You See Alcoa Sell Off, Buy Into This Multi-Year Story

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Cramer adds investors need to hear what Kleinfeld says about the world, which he breaks down into what Cramer calls "the best forecasting machine" he knows.

For all these reasons, Cramer urges investors to buy the stock if it gets hit.

Summary

February can be good for stocks.
Kinder Morgan is less sensitive to oil price.
LendingClub does not have a sound business model.
Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday, February 3.

There has been a change from bad in January, to good in February. Cramer reviewed what changed from "breaking bad to breaking good" that led to two days' rally in February. First is the currency. The euro has taken a small U-turn after the Greek election. While investors were expecting a freefall in the euro, it did not happen.

Cramer thinks the change in outlook is due to the new Greek finance minister and mentioned the elections came at the right time. He also sees signs of economic recovery in Europe with Germany having strong auto sales and ManpowerGroup (NYSE:MAN) seeing strong growth in Northern Europe.

Secondly, the rise in 10-year treasury rates is good for the 17% financials group of the S&P 500.

The third reason for change is the recovery in oil price. Cramer thinks that oil has found a bottom finally as some oil stocks which lowered their guidance and got analyst downgrades, are trading higher. "This is how a bottom is defined," said Cramer.

Rise in copper is another reason. Copper started rising recently on the back of stimulus by China. Copper is viewed in co-relation with China's growth.

If all the up-trends hold, then February will be a positive month for stocks and Cramer thinks investors should make the best of this move.

Cramer took some calls:

Alcoa (AA) is doing incredibly well. "You want to own it," especially with a recent acquisition. It usually declines after earnings, so Cramer would consider picking up some then.

GlaxoSmithKline (GSK) has a "murky" pipeline, but it can cover the dividend. "I like Glaxo. I think it is a buy."

ReWalk (RWLK) is "way too hot for me," but Cramer says he needs to do more research before he can opine.

A New Yorker Stock Pick: Agios Pharmaceuticals (NASDAQ:AGIO). Other stocks mentioned: Celgene (NASDAQ:CELG), Myriad Genetics (NASDAQ:MYGN), Tesaro (NASDAQ:TSRO)