Cramer's 'Mad Money' Recap: Food-Stock Rally Could Mean Agita

New Gas Will Fuel Southwestern Energy

There's a big shortage in natural gas, said Cramer, and Katrina only exacerbated it. Cramer thinks natural gas could go to $20 or $30 this winter from $12 where it is now.

Although "pretty much anywhere in the natural gas complex can make you money," said Cramer, and although he is keeping "'mon back*" status on longtime natural gas favorites Chesapeake Energy (CHK) and EnCana (ECA), Cramer is especially bullish on Southwestern Energy (SWN).

Southwestern Energy owns the largest interest in the Fayetteville, Ark., natural gas shale beds. Extracting gas from shale is expensive, said Cramer, but with prices for natural gas high and likely going higher, developing it makes sense. The companies that can find new gas and get it to market are "going to make a killing," he said.

Cramer believes Southwestern Energy's stock "easily goes to $70," maybe $75. At $65.80, where SWN ended the regular trading session Tuesday, "it's a steal," said Cramer.

Six Multiple Is Key for Lennar

Lennar (LEN) CEO Stuart Miller joined Cramer by telephone on the show. Cramer asked Miller if anything can be done to stop the erosion in the company's stock price in an environment of rising interest rates.

"The reports of our demise are greatly overexaggerated," said Miller. The fundamentals of homebuilders remain strong, he said.

Cramer asked Miller if he would back up his words and "make a statement buy," buying Lennar's stock, himself.

Miller said he already owns enough Lennar stock but that he is holding onto it.

Cramer wanted to know the lowest multiple Lennar's stock has ever had.

"Probably five to six," said Miller.

Cramer summed up the interview saying "you heard where the low multiple can go. ... Don't buy until you get to a six multiple, and then we do the 'mon back."

Viewer Mail

Commenting on Martha Stewart Living Omnimedia (MSO), Cramer said, the stock is "reflecting a lot of honest things I hear" in its decline to $25 from $32. The stock should be valued between $12 and $15, said Cramer, based on earnings. So, unless Martha Stewart's Apprentice TV show becomes more popular, "that stock's going to go to $20," he said. However, Cramer isn't counting out Stewart and her producer, Mark Burnett, from being able to turn the show around, and he is standing by the stock.

In response to a question about Ceradyne (CRDN), Cramer said he liked "that whole ceramic play," and he believes the stock goes higher.

Cramer has changed his tune on Sprint Nextel (S), saying "don't buy." Cramer is worried about competition from Verizon (VZ) and its new low-priced DSL service.

Cramer said he believes Sirius Satellite Radio (SIRI) will beat its lowered guidance for new signups, but he "likes XM (XMSR) more."

Lightning Round

Bullish

Cramer was bullish on United Parcel Service (UPS), Coca-Cola (KO), PepsiCo (PEP), salesforce.com (CRM), KeySpan (KSE), Energy Partners (EPL), Peabody Energy (BTU), Fording Canadian Coal Trust (FDG), Intel (INTC), Chicago Mercantile Exchange (CME), Franklin Resources (BEN), Schlumberger (SLB), Halliburton (HAL), Energy Conversion Devices (ENER), Ingersoll-Rand (IR) and Microsoft (MSFT).

Bearish

Cramer was bearish on Maytag (MYG), FedEx (FDX), Lions Gate Entertainment (LGF), Quiksilver (ZQK), Harrah's Entertainment (HET), Pier 1 Imports (PIR), EMC (EMC), ATI Technologies (ATYT), eResearch Technology (ERES), Adobe Systems (ADBE), McDonald's (MCD), Openwave Systems (OPWV), Rambus (RMBS), GSI Commerce (GSIC), Impac Mortgage Holdings (IMH), Constellation Brands (STZ).

	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

*For all you home-gamers, a 'mon-back opportunity means Cramer would back up the figurative truck and load up on a stock.

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