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

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

Don't Like That Bike

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

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 Quote - Cramer on PCAR - Stock Picks) and Volvo (VOLVY Quote - Cramer on VOLVY - Stock Picks). 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 Quote - Cramer on IBM - Stock Picks), Newmont Mining (NEM Quote - Cramer on NEM - Stock Picks), Goldcorp (GG Quote - Cramer on GG - Stock Picks), Anglo American (AAUK Quote - Cramer on AAUK - Stock Picks), iRobot (IRBT Quote - Cramer on IRBT - Stock Picks), T. Rowe Price (TROW Quote - Cramer on TROW - Stock Picks) and Nucor (NUE Quote - Cramer on NUE - Stock Picks).

Bearish

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

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