Cramer's 'Mad Money' Recap: Georgia Gulf Excursion

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The stock of Georgia Gulf (GGC) is headed higher and "probably by more than a little," said Jim Cramer Monday on his "Mad Money" TV show.

Cramer explained there is a shortage of PVC and chlor-alkali, two chemicals produced by Georgia Gulf. The conventional wisdom, though, is that China is building a number of plants to produce PVC and chlor-alkali, and when those plants come online, prices will plummet, he said. But, Cramer believes the conventional wisdom is wrong.

It turns out only half the Chinese plants are going to be completed on time, said Cramer. Additionally, the plants aren't nearly as ambitious as their press releases claim. Thus, China is not going to have the capacity to produce nearly as much of these chemicals as people are expecting, said Cramer.

Cramer said the stock of Georgia Gulf is priced as if a flood of supply from China is a certainty. Therein lies the opportunity, he said, adding that he likes Georgia Gulf for a six-week trade.

A caller asked what Cramer thought of chemical makers Dow (DOW) and DuPont (DD). Cramer said he likes Dow but is not as big a fan of DuPont.

Cramer also mentioned URS (URS), saying he liked the stock.

Wait for the Sale on New-Suit News

Cramer's twofer of the day was Nortel (NT) and Newell Rubbermaid (NWL). Cramer had been bearish on both companies. However, both announced new CEOs Monday, and Cramer is now bullish.

The stocks were up big Monday on the news, but Cramer said they will probably sell off Tuesday in knee-jerk fashion. Cramer would buy into the selloff.

Newell Rubbermaid has great brands, said Cramer. But former CEO Joe Galli was a destroyer of value, he said. When a brand is great and sales are down, it's the fault of the CEO, said Cramer. With the prospect of a new CEO, the value of Newell Rubbermaid's brands can be realized.