Cramer's 'Mad Money' Recap: Wear SOX but Go Shoeless

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Jim Cramer told viewers of his "Mad Money" show to slip out of their shoes and get into the SOX.

Cramer said that Timberland(TBL Quote), which reported second-quarter earnings Tuesday morning and said it would have a more challenging third quarter, indicates that there are big problems in the shoe business.

There is an inventory glut in the shoe business. And while Timberland may not be a broken stock, Cramer said, the shoe business is not the place to be.

Cramer said investors should be in semiconductors, in the Philadelphia Stock Exchange semiconductor index, also known as the SOX. What's more, semiconductor companies keep prices high, so they don't have to worry about declining prices. As a result, Cramer believes the SOX could tack on another 100 points.

Cramer also told investors to eyeball eye-related companies. He urged investors to buy Intralase(ILSE Quote). Cramer said that if he were still running his old hedge fund, he would buy half of his position now before the company posts earnings on Thursday, and then invest the rest later.

LCA-Vision(LCAV Quote), which administers Lasik eye surgery, is looking into using Intralase's lasers, which sell for about $350,000. The company, which doesn't make a lot of money on the lasers, then sells the disposable patient interface afterward, which is where all of the profit is. It's the razor and the razor blades type of story that Cramer likes.

Cramer also likes Alcon(ACL Quote) and Bausch & Lomb(BOL Quote). But he believes investors may have "missed a lot of the run" in these two companies.