Cramer's 'Mad Money' Recap: YaBay? eBayhoo?

Each company has components that the other lacks, Cramer explained. With Yahoo!'s users, eBay's Skype and Paypal networks could expand.

Steel Yourself

Time and time again, Cramer told viewers, he sees a "lucrative pattern" in companies that are getting taken over: First the leaks start, then people start buying call options, and then the stock runs and the deal happens anyway.

And in the case that a takeover doesn't occur, these stocks don't go down, he said.

Right now Cramer sees this pattern going on with Cleveland Cliffs (CLF). CLF has half the total iron-ore capacity in North America, but more importantly it is rumored to be in talks with CVRD (RIO). Cramer said he got this stock idea from Stockpickr.com.

Other than RIO buying CLF, he said he could also see Rio Tinto (RTP) or even BHP Billiton (BHP) as promising candidates to take over CLF. In addition, Cramer believes that steel companies are equally interested in buying CLF.

Cramer said there is no way he sees CLF staying independent and that if market players get in ahead, they could stand to profit with the stock. Using the recent SSBA-Ipsco deal to estimate CLF's takeover price, he said he conservatively believes that CLF is worth $88 a share, $5 up from where it is here.