Mad Money

Harness outsized gains with Cramer strategy

Today's market wins are accessible: Cramer

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

Jim Cramer honestly believes that regular investors can outperform the broad market every day, simply by doing a little legwork.

That is, the Mad Money host feels that through so-called 'homework' or nuts and bolts research, individuals can easily identify 5 to 10 stocks that outperform the S&P 500, and then buy and sell those stocks strategically.

Don't think so?

Cramer says if you simply look at the some of Thursday's best performing stocks and then review the investment disciplines he talks about every night on "Mad Money" you'll quickly share his outlook.

Adam Jeffery | CNBC

For example, the closed 0.49% higher on Thursday yet Mylan surged more than 9%. "This is a generic drug maker that reported excellent earnings," Cramer said. Simply by following the sector you would know that there's been considerable takeover activity in the sector. "We know there's a couple of big companies, including Valeant Pharma and Teva, that need to grow by doing an acquisition and from the tone of Mylan's conference call this company could make a lot of sense."

If pharma doesn't float your boat, Cramer said you could have just as easily caught the gains in First Solar which ended Thursday's session more than 8% higher. "Yesterday, this company, which is in the sweet spot of renewable energy, got walloped after it reported a quarter where it didn't produce as many megawatts as it was supposed to. I told you to buy the weakness because we know from research that weakness after earnings tends to present opportunity."

Not a fan of solar? The "Mad Money" host also thinks you could have captured the gains in Cliffs Natural, which finished almost 3% higher on Thursday. All you need to do is read the papers to know that this iron ore company is battling activists who want to bring out value. "I think the patterns in these circumstances are pretty clear: when an activist comes knocking, the odds favor the shareholders, as board of directors are now willing to listen."

Or how about retail. Cramer thinks the advance in Kohl's was practically telegraphed by Home Depot, Macy's and Lowe's, all of which suggested the consumer was improving. "So what was so hard about buying Kohl's? It's a much better story than most of the other retailers who rallied before it. Another gain you could've captured, and a bunch of brokers upgraded it because of a turn in the fundamentals," Cramer said.

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eBay is another stock with gains that Cramer thinks were easily harnessed. "I've been hot on this one ever since Carl Icahn got involved saying that there could be lots of value to unlock here if they can just separate eBay, the online marketplace company from PayPal, the online credit card company." On "Mad Money Cramer talks about this concept regularly. "When we've seen these corporate breakups in the past, they've made us a ton of money. Remember WhiteWave Foods? Think about the gains since it broke off from Dean Foods."

The Mad Money host also believes gains in Verizon,, Whirlpool and other stocks could have been anticipated and caputred.

"I'm constantly hearing otherwise intelligent people say that you just can't consistently beat the market," Cramer lamented. But I just don't see it that way. There are a host of good stocks that can make you serious money on a daily basis."

All you need to do is a little homework.

Call Cramer: 1-800-743-CNBC

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