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Cramer: 5 Stocks with Strong Tailwinds

(Click for video linked to a searchable transcript of this Mad Money segment)

Often times top performing stocks rally into the end of the quarter as part of a phenomenon called window dressing.

What happens is this. "Hedge funds and mutual funds that own them do some buying in order to mark up their merchandise," Cramer explained. "And the funds that don't own them do some buying so they can show their investors how smart they are because, look, they have the quarter's best performers in their portfolio."

In anticipation of this regular phenomenon, Cramer identified the best performing stocks for Q2 2013; as of Thursday June 20th they were First Solar up 56%, Advanced Micro Devices up 52%, GameStop up 46%, Micron up 36% and Actavis up 31%.

Cramer calls these stocks 'sailboat stocks' because they're somewhat like sleek sailing vessels nearing the end of a regatta – they have the wind at their backs.

Although Cramer said, "all of these stocks are all likely to benefit from the end of quarter mark ups," he also said that unless you're a pro and can move with aplomb, some of these stocks could leave you adrift on the water in no-time flat. That is, in some cases Cramer thinks tailwinds could die down, pretty quickly.

Following are Cramer's thoughts on the best performing stocks of Q2:

Adam Jeffery | CNBC

First Solar

Unless you're extremely nimble Cramer says don't go near First Solar, at current levels. "I think we missed the move. See, a week ago the company priced a huge secondary offering, selling 9.7 million shares at $46 a piece, and that has totally wrecked the end of quarter markup trade. No institution, no matter how desperate, can move the stock above that $46 level now, especially not with all of these new shares flooding the market. So, at this point, I think the run is over."

Advanced Micro Devices

"A few months ago, people were worried that Advanced Micro Devices, which is very much tied to making processors for the ailing personal computer market, might be on its deathbed," Cramer said. "However, sentiment shifted after AMD announced that they're making the new processor in Sony's PlayStation 4, which is expected to launch this holiday season."

"Revenues from the PS4 should start to really ramp next quarter, and at the same time, we know that AMD is also powering Microsoft's next generation XBOX. Therefore, you have my blessing to buy AMD into this weakness, because the mark-ups will take it higher still."

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GameStop

With the promise of a new console from Sony, "I think the estimates for GameStop are too low going forward—the company should have a terrific second half," Cramer said. "I believe the stock still has room to run. However, ideally, you want to buy this one on a pullback."

Micron

"Old school tech names are pegged to an improving economy, so as business gets better, I'd expect Micron to go higher," Cramer said.

The Mad Money host believes just release earnings confirm the thesis. "Micron just reported a stellar quarter last night after the close, they actually beat by a penny delivering their first profit in two years. Plus, Micron has been a huge user of cash, but suddenly in this latest quarter, the cash flow is very positive."

Actavis

"Actavis announced they're buying Warner Chilcott last month, and the stock shot through the roof on the news, up 13% in a single session," Cramer said. "Normally, acquirers don't rally like that, but this merger not only gives Actavis exposure to new businesses, it also expands its footprint and fills a big hole in the company's pipeline. I think this deal is terrific for Actavis, and you can buy the stock into the current weakness because the wind will be at its back going into next week," Cramer said.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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