Cramer's 'Mad Money' Recap: Dot-Com Lowdown

IAC has oodles of cash and is cheap, Cramer said, crowning it the new king of Internet stocks.

Cramer said that the company is still hated and advised people get into it before it makes its next big move.

Merck (MRK) is Cramer's pick for best of the best in the pharma space.

Although people hate Big Pharma, Cramer insisted that the company is in the House of Pleasure.

Big drug companies are routinely demonized, but Merck is one company that has decided to punch back, he said. When Merck was taken to court for its Vioxx drug, it decided it wasn't going to take it lying down.

Merck told people it came out with Vioxx to make people feel better, not to kill them. The company said that millions of people took the drug, and it worked.

In addition, the company's new, CEO Richard Clark, wants to communicate to people that Merck is in the lifesaving business, Cramer said.

Plus, Merck has the best cholesterol drug out there and is benefiting from Medicare Part D. Right now, Merck is the only company that is working off the idea that big drug companies are here to save people -- not harm them. That's why it's the one company to buy in this space now, Cramer said.

Cramer welcomed Timothy Guertin, Varian Medical Systems (VAR) president and CEO, to the show and asked him to explain the company's two big oncology and medical businesses.

Varian's oncology business is the largest maker of every type of hardware and software in the world for radiotherapy, Guertin replied. The company is also the largest maker of X-ray tubes and has a security business that makes machines that can X-ray large devices, he said.

When Cramer asked if the two companies belong together and if they might be profitable as separate companies, Guertin said that although Varian could run them as separate businesses, there are certain advantages of keeping them together.

One of these advantages is shared technology, Guertin said.

Cramer said he liked the stock before the interview and after it as well. He called it the perfect slowdown stock to put with Walgreen (WAG) and Kellogg (K).

To view Cramer's interview with Timothy Guertin, please click here.

Lightning Round

Cramer was bullish on Johnson & Johnson (JNJ), Lowe's Companies (LOW), IAC/InterActive (IACI), Cameco (CCJ), WCI Communities (WCI), Zimmer Holdings (ZMH) and Anheuser-Busch (BUD).

Cramer was bearish on Boston Scientific (BSX), Home Depot (HD), Verasun Energy (VSE), Smith & Nephew (SNN) and FuelCell Energy (FCEL).

In the "Sudden Death" round Cramer was bullish on Hershey (HSY), Crocs (CROX) and UnitedHealth Group (UNH).

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

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Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.

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