Cramer's 'Mad Money' Recap: Finding-Bottom Dollars

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In a market like this, what people are looking for is a big, fat bottom, Jim Cramer told viewers of his "Mad Money" TV show Monday. By spotting a bottom, players put themselves in a favorable position.

"I'm going to show you what a bottom looks like in a stock kingdom," Cramer said, explaining that a bottom is a stock that shouldn't go down any further, other than maybe a tad.

A company is at its bottom when bad news can't knock it down any further. Some people are looking for a bottom in the technology sector, but Cramer doesn't believe there is one.

There are players that believe Intel (INTC Quote) or Microsoft (MSFT Quote), which Cramer owns for his Action Alerts PLUS charitable trust, might be bottoms. But these stocks are selling too high to be regarded as bottoms, he said.

The same thing goes for Cisco Systems (CSCO Quote) and Sun Microsystems (SUNW Quote). These are not bottoms, Cramer said.

"It's all about the price-to-earnings multiples," he said. "We want to look for stocks with very low multiples." Houston Exploration (THX Quote), a company that explores natural gas and oil reserves in North America, is an example of a stock that was once a bottom. It was appreciably cheaper, Cramer said.

WCI Communities (WCI Quote) is a bottom now, he said.

The stock of this builder of high-end homes for retiring baby boomers could be dynamite in three or four years. When the Federal Reserve stops raising rates, this is a stock you could pull the trigger on, he said.

"Why do I think this baby got back? Because it just reported the single worst quarter of the year," said Cramer.

After reporting an abysmal quarter, this stock is down to next to nothing and sooner or later it should come up, so market players could make some money off of it over the long haul.

"The guys running WCI probably won't let the stock go any lower," Cramer added. "The bottom line is WCI is the place to be."