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Cramer's 'Mad Money' Recap: A Symbolic Lesson

DNA and a Pepsi

Later in the show, Cramer offered two stocks that should be bought now: Pepsi (PEP - Get Report) and Genentech (DNA). He said Pepsi has taken Coca-Cola's (KO - Get Report) best shots and rebounded every time. What's more, "Pepsi has a strong mosaic of businesses," Cramer said. As a result, no competitor can lay into it.

As for Genentech, Cramer said it has a strong drug pipeline and the pipeline is not reflected in the numbers, he said. Cramer said Genentech reminds him of the way Merck (MRK - Get Report) traded back in 1985 and 1986. The stock went up every day.

Pepsi and Genentech are both best of breed, Cramer said, and neither can be defeated.

As for the rumor du jour, Cramer said call buyers have been busy in the options pits speculating on Eastman Kodak (EK). Word on the Street is that Hewlett-Packard (HPQ - Get Report) is getting ready to buy the company. Not so fast.

"Don't do an obviously stupid thing with this tip," Cramer said. "Do not buy Eastman Kodak, he admonished. "Tips are for waiters." If you buy Eastman Kodak, you are breaking Cramer's rule. The rule is that you do not speculate on companies with bad fundamentals, and that's what Eastman Kodak has, he said.

If you want to play the rumor, buy H-P instead, he said. Once H-P denies it is buying the company, H-P will fly, Cramer said.

Finally, Cramer gave ev3's (EVVV) chief executive, Jim Corbett, an opportunity to detail his company's prospects. The company, which recently went public, hasn't shown much stock appreciation, but Cramer said he would buy shares in the medical device maker.

Bullish

During the Lighting Round, Cramer was bullish on: Nextel Partners (NXTP), Wynn Resorts (WYNN - Get Report), Goodrich Petroleum (GDP - Get Report), Harrah's Entertainment (HET), Hansen Natural (HANS), OraSure Technologies (OSUR - Get Report), Boyd Gaming (BYD - Get Report), Amgen (AMGN - Get Report), Target (TGT - Get Report), Halliburton (HAL - Get Report), EnCana (ECA - Get Report), Petroleo Brasileiro (PBR - Get Report), Annaly Mortgage (NLY - Get Report), Archer Daniels Midland (ADM - Get Report), Gold Kist (GKIS), Bunge (BG - Get Report), Countrywide Financial (CFC), J.C. Penney (JCP - Get Report), Constellation Brands (STZ - Get Report), L-3 Communications (LLL - Get Report), Centerpoint Energy (CNP - Get Report), Coventry Health Care (CVH), RSA Security (RSAS), Sabine Royalty Trust (SBR - Get Report), Temple-Inland (TIN), Harley-Davidson (HDI), Air Products and Chemicals (APD - Get Report), Cendant (CD), Transocean (RIG - Get Report) and Garmin (GRMN - Get Report).

Bearish

Cramer was bearish on: Lakes Entertainment (LACOE), Regeneron Pharmaceuticals (REGN - Get Report), Ross Stores (ROST - Get Report), Gateway (GTW), Allegheny Energy (AYE), palmOne (PLMO), Fieldstone Investment (FICC), CMGI (CMGI), Anheuser-Busch (BUD), First Data (FDC), Sun Microsystems (SUNW), Union Pacific (UNP - Get Report), PetroKazakhstan (PKZ) and Trimble Navigation (TRMB - Get Report).


Interested in more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here. It's a series of articles from Cramer on how to become a better investor. The following table lists some of the rules that Cramer dissects.

1. Pigs Get Slaughtered 2. It's OK to Pay the Taxes
3. Don't Buy All at Once 4. Buy Damaged Stocks
5. Diversify to Control Risk 6. Do Your Homework
7. Don't Panic 8. Buy Best-of-Breed
9. Defend Some Stocks 10. Don't Bet on Bad Stocks
11. Own Fewer Names 12. Cash Is for Winners
13. No Regrets 14. Expect Corrections
15. Know Bonds 16. Don't Subsidize Losers
17. No Room for Hope 18. Be Flexible
19. Quit When Execs Do 20. Patience Is a Virtue
21. Be a TV Critic 22. When to Wait 30 Days
23. Beware the Hype 24. Explain Your Picks
25. Find the Bull Market
Check back for more of Cramer's Rules
At the time of publication, Cramer was long EnCana and Halliburton.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS . While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here . Listen to Cramer's RealMoney Radio show on your computer; just click here . Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict."
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