Cramer's 'Mad Money' Recap: A Feather in Capstone's Cap

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An energy play whose time has come is Capstone Turbine (CPST Quote), Jim Cramer said Monday on his "Mad Money" TV show.

Capstone makes natural gas-powered micro turbine generators for business and home use. Capstone recently signed agreements with KeySpan (KSE Quote) and Consolidated Edison (ED Quote) to promote its products in the New York area. Capstone's shares have moved from $2 to $4.50 in the past month, but the stock should really take off as the company moves west, Cramer said.

Capstone is poised for "triple-digit revenue growth for the next several years," said Cramer, because it has a cost-effective way to produce energy.

There is one caveat, though, because the stock has already moved up so rapidly in such a short amount of time: Cramer said wait for a pullback before buying the shares.

A caller wanted to know if alternative energy such as solar would ever be a big player in the energy market. No, Cramer said. Germany and France are the only countries really encouraging solar's use, he said. It's simply not an economical alternative under any realistic energy scenario.

The Big Cat

Another caller wanted to know if Caterpillar (CAT Quote), which also makes micro turbine generators, would be a good play. Cramer said Caterpillar is simply too large a company and has too many moving parts for its micro turbine business to have much of an impact on the company as a whole.

Gaming Stocks Worth Playing

Penn National Gaming(PENN Quote) is the "best gaming stock you have never heard of," said Cramer. "They're about to become the third-largest gaming company in the country" as soon as the acquisition of Argosy (AGY Quote) closes.

Cramer especially likes Penn because it will own local and regional casinos, where there is little competition. It also has racetracks and off-track betting facilities that "make money, and that's what counts."

A caller asked if a better way to play gaming might be to own the suppliers and gaming-equipment makers. Cramer said he did not like the "arms suppliers in this business because there really isn't a 'war.'"

Another caller asked about Las Vegas Sands (LVS Quote), which has exposure to China. Cramer said he did not like LVS because "the hot money's there."