Cramer's 'Mad Money' Recap: Biotech Bundling

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At the top of his "Mad Money" TV show Tuesday, Jim Cramer reminded viewers of his call on Monday concerning Sherwin-Williams . Cramer said then that a "bogus lawsuit" against the company regarding lead-based paints was creating a buying opportunity in the stock.

On Tuesday, the judge in the suit denied a request for punitive damages against the company, which should limit the cost of the case to the paint maker, he noted. The stock jumped 7% on the news, closing regular trading Tuesday at $45.55. If the broader market hadn't been down so much Tuesday, Sherwin-Williams' stock would have hit $52, Cramer said.

"It's good to be right," Cramer said.

Cramer then gave some general investment advice to viewers: Read trade publications. Such magazines can be a "great source of 'intel,'" he said.

One such trade publication that offered a good investment idea is PR Week. An article this week spotlighted the small biotech companies helping big pharmaceutical makers develop new drugs. With the release of those new drugs, the biotech companies have a chance to raise their own profiles, the report said.

Rising public awareness plays into the Cramer's first law, he said: The more the public is aware of these companies, the higher their stock prices will go.

"The more they raise their profiles ... the more we should be willing to back up the truck*," he said.

Of course not all the small biotech companies are going to be able to get more exposure -- and higher stock prices -- out of their relationships with big pharmaceutical companies, Cramer noted. The PR Week article focused on how Nektar Therapeutics was left out of a New York Times report on a new drug from Pfizer , even though Nektar played a key role in developing the product.