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Cramer's 'Mad Money' Recap: Make the Most of the Weather

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"Hurricanes can't make you money. That trade never works," Jim Cramer said Friday on his "Mad Money" TV show.

"But, you can always make money off of people acting stupidly. You've got to own Montpelier Re Holdings (MRH) because people always sell good insurance companies during bad weather. It's just the kind of knee-jerk stupid stuff that happens every September, every August, right around now," said Cramer.

Braving the Storms

Cramer said insurance companies always have to pay out during hurricane season, and they manage for that. "That's what they do. They're in the insurance business!" An expected hurricane shouldn't have any effect on their earnings forecasts, he said.

Cramer prefers Montpelier as opposed to American International Group (AIG), which used to be the insurance play, he said, because of AIG's tarnished image at the moment.

A caller asked if Lowe's (LOW) and Home Depot (HD) would be good hurricane plays. Cramer said not really because both Lowe's and Home Depot are "pretty good corporate soldiers," when bad weather strikes. "They don't gouge," he said. "If anything, they give back to their communities."

Unfriendly Skies

When it comes to whether one should own airline stocks, "The answer is always, 'No!'" Cramer said. "These things have been going down for as long as I've been in the market."

Nevertheless, Cramer said he's always asked for airline stock plays. Although not an airline, Aviall (AVL), an outsourcer for the airlines, is one Cramer recommends. Cramer said Aviall is benefiting from the airlines' struggles because it can help them save money.

A caller wanted to know if there were any helicopter plays Cramer liked. Cramer said that although the helicopter business is healthy, there are no good pure plays because most helicopter companies are part of larger conglomerates.

Another caller wanted to know about World Air Holdings (WLDA). While Cramer wasn't completely negative on the stock, he said Aviall was the better play.

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