Cramer's 'Mad Money' Recap: Vanity Fare

Cramer's stock pick of the day is Talisman Energy(TLM) because he believes that mutual fund managers will pour money into the stock in January.

At the beginning of every year, Cramer told viewers, mutual fund managers sit down and anoint stocks that in turn do well because mutual fund money pours into them.

"Schlumberger(SLB) was anointed last year, and look how well it did compared to its peers," said Cramer.

"You want these stocks before they're anointed, before all the mutual fund buying comes in over the transom in January," Cramer said. Get in before the stock starts to rise, he added.

The only sector Cramer believes that mutual funds will want is oil, and of that sector he picks Talisman, the former Canadian unit of BP(BP), because of their growth prospects.

"Fund managers will buy this stock because it should be able to see production growth of 10% per year through 2008,"said Cramer. Compare that with most major oil companies that have been looking at production decreases.

VF Corp's Happy North Face?

Finally, Cramer interviewed Mackey McDonald, CEO of VF Corp(VFC), a branded apparel company Cramer has called best of breed.

But this year the company completed only one acquisition. While Cramer is still bullish on the stock, he wanted to know if the company needed to change its strategy.

"We continue to look. But acquisitions don't come at even flows," Mackey said.

And while Cramer wished that the company had made more acquisitions, what really concerned him was the company's The North Face brand.

Retailers told Cramer that this is going to be a North Face Christmas, but the brand is not a dominant percentage of the company's business.

"It's a great brand and has a lot of potential ahead and will be a double-digit grower," said Mackey. "But we are pushing other lifestyle brands. ...It's important, but not the only story."

And Mackey also reassured viewers that retail consolidations would not hurt his company, because no matter the merger, consumers will buy the brands they regardless of where they are sold.

Lightning Round

Bullish

Cramer was bullish on Chesapeake Energy(CHK), Nabors Industries(NBR), ConocoPhillips(COP), Steak N Shake(SNS), Flagstar Banc(FBC), Deere & Co.(DE), Alvarion(ALVR), Neoware Systems(NWRE), Radiant Systems(RADS), ViroPharma(VPHM), Allscripts Healthcare(MDRX), Molecular Devices(MDCC), Salesforce.com(CRM), First Data(FDC) and Southwest Energy(SWM).

Bearish

Cramer was bearish on Petroquest Energy(PQ), Exxon Mobil(XOM), Agco(AG) AutoZone(AZO) and Disney(DIS).

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

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