Cramer's 'Mad Money' Recap: Health Care the New Oil

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The best stocks for the next six months?

"It's all about health care," Jim Cramer said Monday evening on his "Mad Money" show on CNBC. It's all about cost containment and the drug disbursement companies that will be big winners because of Medicare changes that go into effect in 2006.

"These stocks are just like the oils were at the beginning of the year," Cramer said. "Health care is the new oil."

So, how do investors take advantage of the Medicare changes? Cramer outlined five stocks that will do particularly well. Cramer said the following are the five "must-own" stocks:

UnitedHealth Group(UNH Quote), which is the best cost-containment company in the country. "At less than 51 smackers, it's a great deal," Cramer said.

Caremark(CMX Quote), a pharmacy benefit manager, has Medicare exposure, Cramer said.

Omnicare(OCR Quote), an institutional pharmacy.

Walgreens(WAG Quote) and CVS(CVS Quote) are both great pharmacies. Cramer doesn't know which one will do better, so he said own both.

In addition to the five, Cramer added two more names to the mix. These two stocks, however, should be put into your "Mad Money" speculative portfolio. They are Allscripts (MDRX Quote) and Quality Systems(QSII Quote). These companies, which make software for hospitals and doctors' offices, help companies save time, money and lives, Cramer said. What's more, they have lots of potential for growth because there is only 5% market penetration right now.

Cramer did say to stay away from one name, though: Wellcare(WCG Quote). The managed care services company will not do well, he said.

'The Lightning Round'

Bullish

Cramer was bullish on: Abbott Labs(ABT Quote), Lennar(LEN Quote), Harley-Davidson(HDI Quote), Zimmer Holdings(ZMH Quote), Pixar(PIXR Quote), Millennium Pharmaceuticals(MLNM Quote), New York Community Bancorp(NYB Quote), GameStop(GME Quote), UBS(UBS Quote), Onyx Pharmaceuticals(ONXX Quote), JLG Industries(JLG Quote), Vertex Pharmaceuticals(VRTX Quote), Iconix Brand(ICON Quote), Amgen(AMGN Quote), DuPont(DD Quote), Evergreen Solar(ESLR Quote), Life Time Fitness(LTM Quote), Quantum Fuel Systems(QTWW Quote), Cisco Systems(CSCO Quote), Goldcorp(GG Quote), and LSI Logic(LSI Quote).

Bearish

Cramer was bearish on: Toll Brothers(TOL Quote), Dendreon(DNDN Quote), Union Pacific(UNP Quote), Serologicals(SERO Quote), Alaska Communications Systems(ALSK Quote), Teva Pharmaceutical(TEVA Quote), Home Depot(HD Quote), Avaya(AV Quote), Newell Rubbermaid(NWL Quote), Avocent(AVCT Quote), American Tower(AMT Quote), Seattle Genetics(SGEN Quote), and Ford(F Quote).

Going Global

Last week, Cramer discussed a basket of security stocks that investors should own. Within that basket was Global E-Point(GEPT Quote). The company has risen more than 80% since Thursday when Cramer first mentioned it. But when the stock is up this much, Cramer said, you have to take profits.

"When you have gains of 100%, you need to take something off the table," he said. Remember: "You haven't made a dime until you sell," he stressed.

Cramer told a caller that when you get stocks like Global E-Point, which make huge moves, you should trade around the portfolio. You sell half the position in the stock, Cramer said, and hope that the stock falls so that you can buy more.

	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