Cramer's 'Mad Money' Recap: It's Takeover Time

Cramer believes that the loser of the fight between Johnson & Johnson (JNJ) and Boston Scientific (BSX) for Guidant (GDT) would be the likely buyer.

Don't Like That Bike

MarketWatch's Herb Greenberg joined Cramer to talk about Harley-Davidson (HDI) and Sears Holdings (SHLD).

Greenberg said Monday a J.P. Morgan analyst issued a report saying Harley-Davidson has warehouses available "where the dealers actually store all the bikes that they can't handle." The important issues, said Greenberg, are whether Harley transferred ownership of the bikes to the dealers and whether Harley recognized sales of those bikes as revenue.

Greenberg said it appears that Harley did transfer ownership and did recognize the revenue.

But, another big question is "Why would [the dealers] buy more bikes than they could carry in their own warehouses?"

"If you want to make a good quarter you might do that," said Cramer.

"Well, if you do that one quarter too many, you know what happens -- especially if you don't...get the orders you want" in the spring? asked Greenberg. "That could be an issue."

Greenberg added that he is waiting to hear back from Harley Davidson for an explanation about the warehouses and an answer as to how many of these types of warehouses the company has.

Cramer then asked Greenberg about Sears.

Greenberg said he has concerns about things that Chairman Eddie Lampert said in his letter to shareholders issued with the company's third-quarter earnings report Tuesday. Greenberg said the letter revealed that "there is no grand strategy."

"His grand strategy is to create more cash," countered Cramer.

"He's going to create more cash only one way...if he doesn't spend any money working on the stores."

"There are 2,300 stores. He's got 1,000 stores too many," said Cramer.

"So, he cuts down the [number of] stores, and then what do you have?" asked Greenberg.

"You have a very profitable operation," said Cramer.

Cramer summed up the interview saying, "Harley, I don't like. Sears? Ignore that man."

What a Long, Strange Trip

Cramer wants to back up the truck on trucking stocks because of new rules that will go into effect in 2007 requiring diesel trucks to conform to much more stringent emission standards. The new rules are expected to add between 8% and 16% to the price of a truck, he said.

So, truckers considering replacing their trucks have a huge incentive to do so in 2006. Even without an incentive, we would already be entering a "major replacement cycle," said Cramer, as the average age of a truck on the road -- at six years -- is the highest it's been since the early 1990s.

Cramer likes Paccar (PCAR) and Volvo (VOLVY). Although Volvo is best of breed and is working on a hybrid-diesel engine for next year, Paccar is also good, he said.

Lightning Round

Bullish

Cramer was bullish on IBM (IBM), Newmont Mining (NEM), Goldcorp (GG), Anglo American (AAUK), iRobot (IRBT), T. Rowe Price (TROW) and Nucor (NUE).

Bearish

Cramer was bearish on Petroleo Brasileiro (PBR), Eastman Kodak (EK), Connetics (CNCT), Trex (TWP), Chesapeake Energy (CHK), BE Aerospace (BEAV), Orbital Sciences (ORB), MDU Resources (MDU), Valero Energy (VLO), BellSouth (BLS), Verizon (VZ), AT&T (T), Eaton Vance (EV), Montpelier Re Holdings (MRH), Sycamore Networks (SCMR), Avaya (AV), Alcatel (ALA) and Cisco (CSCO).

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

	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

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