Cramer's 'Mad Money' Recap: Playing With Clay

Rack 'Em Up

"I don't know why every mutual fund manager decides on the same stocks. ... We may as well try and make some money off the fact they do," Cramer said. He encouraged viewers to buy the stocks that fund managers will pick, because those stocks are guaranteed to grow with massive institutional support.

He said that Rackable Systems(RACK) will be a core holding for tech managers in 2006, much like F5 Networks(FFIV) was in 2005.

Cramer said that in terms of storage system companies, Network Appliance(NTAP) has "that yester-year feel," and that Rackable will be the new Network Appliance.

Companies that buy Rackable products include Yahoo!(YHOO), Electronic Arts(ERTS) and Deutsche Bank(DB).

Moreover, this small company won't be taken out by larger players because it has an impenetrable line of patent protection, and its servers are compatible with Intel(INTC).

Rackable posted only $200 million in sales this year, but Cramer thinks it will blow out the numbers in 2006, adding that it has room for double-digit growth.

Tiptoe to a Takeover

Cramer's stock pick of the day was Computer Sciences(CSC).

He called it a truly irresistible stock that would make his viewers a lot of money without much risk because it does a lot of government contract work and a lot of outsourcing.

But the real reason Cramer said to buy CSC is because it's the ultimate takeover target.

"If and when CSC gets bought it will get a serious premium, not like that Hilfiger(TOM) nonsense," he said.

This is because Lockheed Martin(LMT) was supposed to buy the company, but the deal fell apart because CSC wanted more money.

And in the months since it fell apart, Computer Sciences has scored some of its biggest contracts ever, including a contract with DuPont(DD) worth $1.6 billion to $2 billion. There's also a deal in the works with BAE Systems that could be worth over $1.9 billion and its Defense Department orders have risen 20% year-on-year.

Plus, General Dynamics(GD) agreed to buy Anteon(ANT), a company similar to CSC; and General Dynamics paid a 30% premium.

CSC is trading below $50 and is dead in the water, said Cramer, who advises buying now before it's too late.