Cramer's 'Mad Money' Recap: A Radiant Stock

Credit Where Credit Is Due

On Thursday's show, Cramer commented on stocks that had high short interests such as Accredited Home Lenders(LEND), about which Cramer said he is not a fan of the company's nonconforming loan business. James Konrath, the company's CEO, joined Cramer by telephone Friday to give his point of view.

"Why is the short position so big if it isn't a bad company?" asked Cramer.

Konrath said most publicly traded non-prime mortgage lenders are REITs. Accredited Home Lenders is not. "Because of the decline in some of the REITs' stock prices, some ... are paying a dividend of 20% or more. Investors who either want to short the space or want to be long one of those dividend-paying REITs but don't want to be long the industry are shorting LEND because we do not pay a dividend."

"So, they think it's like a risk-free short?" asked Cramer.

Yes, said Konrath, but he added LEND has the lowest origination costs and some of the highest gains on the loans it sells "giving us the highest profit margin of any publicly reporting company."

He added LEND is able to price its asset-backed securitizations at the highest levels "because we've had some long-term superior performance on our mortgage-backed securities."

Konrath also said LEND has an "unbroken record of meeting or exceeding our quarterly or annual EPS guidance since the company went public in February '03."

Cramer summed up the interview saying he was not aware of LEND's excellent track record and added that the company had been in business for 10 years, but had only been public for two years. Had Cramer known, and with LEND trading at just four to five times earnings, he would have given the stock a 'mon back, he said. "This one is a true 'get shorty.' Go get 'em!"

(To view Cramer's interview with Konrath, please click here.)

Lightning Round

Bullish

Cramer was bullish on Motorola (MOT), Dow Chemical (DOW), PPG Industries (PPG), Fortune Brands (FO), Black & Decker (BDK), Amgen (AMGN), UnitedHealth Group (UNH), Intel (INTC), Broadcom (BRCM), Qualcomm (QCOM), Ruth's Chris Steak House (RUTH), VeriSign (VRSN), American Science & Engineering (ASEI), Capital One Financial (COF), Toyota Motor (TM), Chesapeake Energy (CHK), Southwestern Energy (SWN), Bill Barrett (BBG), Ultra Petroleum (UPL), ABB (ABB) and Zumiez (ZUMZ).

Bearish

Cramer was bearish on BASF (BF), Amazon.com (AMZN), Leggett & Platt (LEG), Abgenix (ABGX), HCA (HCA), Applied Micro Circuits (AMCC), Fidelity National Financial (FNF), MBNA (KRB), Valero Energy (VLO), j2 Global Communications (JCOM), DaimlerChrysler (DCX) and Tommy Hilfiger (TOM).

For more of Cramer's insights during the Lightning Round, click here.

*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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Interested in more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here. It's a series of articles from Cramer on how to become a better investor. The following table lists some of the rules that Cramer dissects.

	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
Check back for more of Cramer's Rules

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