Cramer's 'Mad Money' Recap: Fair to Mid-Caps

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Roped In

Cramer told "Mad Money" viewers Wednesday that they should think about buying Roper Industries(ROP Quote), a diversified industrial company that serves a set of niche markets by making products including water meters, pumps and measuring instruments.

These products are important and business is sound, he said. But it's not the only reason to buy Roper.

The company was added to the S&P MidCap 400. Cramer said that he and his research team have taken a look at the last 19 stocks to be added to this index, going all the way back to October 2003.

They found that since being added, the stocks for the most part have had a sustained, gradual move upward. Moreover, they have produced an average 34.66% return.

There have been three exceptions: Pacific Sunwear(PSUN Quote), Regis(RGS Quote) and Southwestern Energy(SWN Quote). But Cramer said that 16 stocks up and three down is still a good trend.

Cramer says that nobody wants to own large-cap stocks these days, despite media noises to the contrary, because mid-caps represent growth.

Turning back to Roper, Cramer said that he likes the fact that the company doesn't try to expand its target market, but just captures more share in the markets they currently serve.

It's cheaper for a company to sell more of a product it already sells than to design and market a whole slate of new products, he said.

Plus, he said that Roper has a great radio frequency identification (RFID) company.

For a pure play on water, he told a caller that he would rather go with Aqua America(WTR Quote), which he owns for his ActionAlerts PLUS charitable trust.

Drug abuse is bad, but we can make some money off it, Cramer said. And for those who have been paying attention to the news, they know that one of the most abused prescription drugs is OxyContin.