Cramer's 'Mad Money' Recap: Top Three Speculative Plays for '07

Click here for an archive of Cramer's "Mad Money" recaps.

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Continuing with this week's theme of the top stock picks for 2007, Jim Cramer offered his top three speculative plays on Friday's "Mad Money" TV show.

"The best and long-lasting way of keeping your interest in the market is speculation," he said, adding he regards these stocks as being "sexy."

But before naming his top stocks in the category, Cramer issued a warning. While he believes investors should "give into temptation and speculate," he said they must use protection. First, people should not put any of their retirement money into speculative stocks. Second, when speculating, use a basket, Cramer said.

He advised to take 20% or less of your portfolio money and buy five different speculative stocks with it. Rather than owning a single speculative stock, a basket makes the moneymaking odds more favorable, Cramer said.

"We like taking risks on 'Mad Money,' but there's no reason why you shouldn't spread the risk out," he said.

(This week, Cramer is issuing his annual market forecast. Click here for his top three value picks, which he offered Wednesday, and here for the top three growth stocks he discussed on Thursday.)

Savvy Choice

Taking the "risk factor up a dozen notches," Cramer named Savient Pharmaceuticals (SVNT Quote) as his No. 3 speculative pick.

Although the stock's been on a "tear," Cramer believes it still has "room to run." In particular, he said, Savient has three great attributes.