Cramer's 'Mad Money' Recap: Bullish on Billboards

Bailey said there is a "digital consumer revolution" being driven by iPods, TiVos and high-definition televisions that require a "second generation of broadband infrastructure" to make them work well. PMC-Sierra now derives about 50% of its business from telecom and 50% from enterprise storage, he said.

Cramer asked about PMC-Sierra's legacy business, which, according to one analyst, is not doing well.

Bailey said "things have been getting better from a profitability point of view" over the last four or five quarters.

Cramer asked if PMC-Sierra has created too much assurance. "Would you like to ... just temper the assurances a little bit so that people don't raise expectations?" he asked.

"We have a fabless business model which has a lot of ... financial leverage in that for every dollar of revenue we get, 80% drops to the bottom line," Bailey said.

He added that telecommunications carriers are increasing capital expenditure forecasts for 2006 and consumer gadgets are "devouring bandwidth" and need connectivity. Additionally, "the acquisition that we just did is going to be accretive to our earnings," he said. "We feel very good right now."

Cramer summed up the interview by saying he would like to see one quarter's results with the Agilent acquisition before he embraces the stock. "I've been disappointed in the past," he said.

To view Cramer's interview with Bailey, click here.

Lightning Round

Bullish

Cramer was bullish on Hudson City Bancorp (HCBK), Commerce Bancorp (CBH), Abercrombie & Fitch (ANF), Ameritrade (AMTD), Allscripts Healthcare (MDRX), IntraLase (ILSE), Syneron Medical (ELOS), Salesforce.com (CRM), Johnson Controls (JCI), Sears Holdings (SHLD), SiRF Technology Holdings (SIRF), Brown & Brown (BRO), New York Community Bancorp (NYB), Marsh & McLennan (MMC), Activision (ATVI), Electronic Arts (ERTS), GameStop (GME), Google (GOOG), Barnes Group (B) and Urban Outfitters (URBN).

Bearish

Cramer was bearish on Bebe stores (BEBE), Georgia Gulf (GGC), Krispy Kreme (KKD), Sonus Networks (SONS), I2 Technologies (ITWO), Hewitt Associates (HEW) and The Knot (KNOT).

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

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