Cramer's 'Mad Money' Recap: Higher Learning

Greenberg, who is bearish on J2, said the FCC wants to add a $1 tax to every phone line. J2 tells investors that it doesn't believe such a development would have a material impact on its business.

But, "you know what they tell the FCC?" asked Greenberg. "They say if this tax goes through...it will screw us!"

Cramer then asked Greenberg about Bankrate (RATE Quote). "Should we get in this thing? It looks like the next financial Google (GOOG Quote)!"

Greenberg said Bankrate's stock is up 140% this year. "If the mortgage business...goes down, this business is going to have problems. You've already seen signs of it," he said with page views coming down in the September quarter.

Couldn't Bankrate be an acquisition candidate, asked Cramer?

"If they get acquired, all bets off. Then, it's a good deal," said Greenberg. But, "the slightest whiff...of a small problem with their growth, the stock goes down."

"I like that call," said Cramer. "I think he's two for two today."

Greenberg is "right. These stocks are wrong," he said.

The Hole Gets Bigger

One stock that deserves to be in the prison "sell block," is Krispy Kreme Doughnuts (KKD Quote), said Cramer. The company has "so many problems...I don't even know where to start."

First, Krispy Kreme is going through a restructuring of "everything they can get their hands on" because the company has "botched everything they've touched so far," he said.

Second, one of Krispy Kreme's larger franchises filed for bankruptcy last month, added Cramer. That followed a lawsuit in September by one of Krispy Kreme's franchises charging that the company had fraudulently billed it and had tried to force the franchise into bankruptcy.

"A company like this lives or dies by its relationships with franchises. When they're in trouble, the company is in trouble," he said.

And, if that wasn't enough, the U.S. Attorney's office is investigating Krispy Kreme, and the company hasn't filed financial statements since October 2004. What's more, some financial statements prior to October 2004 have to be restated, said Cramer.

Cramer is appalled that the NYSE is letting the stock trade. Without current financials, there's no way to know anything about the company, he said.

Besides, the Krispy Kreme fad is over, said Cramer. "Who eats donuts these days?"

Lightning Round

Bullish

Cramer was bullish on Whole Foods Market (WFMI Quote), J.C. Penney (JCP Quote), Weyerhaeuser (WY Quote), NitroMed (NTMD Quote), Lucent Technologies (LU Quote), Syneron Medical (ELOS Quote), IBM (IBM Quote), Kansas City Southern (KSU Quote), Union Pacific (UNP Quote), Apple Computer (AAPL Quote), Microsoft (MSFT Quote), Taiwan Semiconductor Manufacturing (TSM Quote), Johnson & Johnson (JNJ Quote), General Maritime (GMR Quote), Headwaters (HW Quote) and TALX (TALX Quote).

Bearish

Cramer was bearish on USG (USG Quote), Martha Stewart Living Omnimedia (MSO Quote), Gasco Energy (GSX Quote), Merck (MRK Quote), Alcon (ACL Quote), ATP Oil & Gas (ATPG Quote), eBay (EBAY Quote), ServiceMaster (SVM Quote), i2 Technologies (ITWO Quote) and Frontline (FRO Quote).

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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