Cramer's 'Mad Money' Recap: Momentum Fund Fuel

Stock quotes in this article: LOW , INTC , GWW , YHOO , SIX , NOK , PH , BA , DD , ATK  

Yahoo! as a takeover target is the most interesting idea, he added. At this point Cramer believes that there are four buyers that would pay at least $30 a share for it: Microsoft (MSFT Quote), Viacom (VIA Quote), Comcast (CMCSA Quote) and AT&T (T Quote).

Based on the analysis, he recommended buying Yahoo! after it reports earnings.

Cramer welcomed Zan Guerry, Chattem's (CHTT Quote) chief executive, to the show. Chattem markets and manufactures over-the-counter health care products, toiletries and dietary supplements.

Cramer asked him what the company's deal to acquire brands from Johnson & Johnson (JNJ Quote) and Pfizer (PFE Quote) could mean for Chattem's earnings. Cramer owns JNJ for his charitable trust, Action Alerts PLUS.

"We think in our first full year, which is 2008, earnings will be up 75 cents to a dollar due to our strong brands," Guerry responded. "I think it was an excellent acquisition, and we paid a good price."

Guerry called the deal a "once in a lifetime opportunity," and said that by acquiring the brands, the company has probably expanded its presence by three or four square feet in drugstores.

Lightning Round

Cramer was bullish on News Corp (NWS Quote), Aircastle (AYR Quote), Lowe's (LOW Quote), J.C. Penney (JCP Quote), Kohl's (KSS Quote), Intel (INTC Quote), Crocs (CROX Quote), BHP Billiton (BHP Quote) and RealNetworks (RNWK Quote).

Cramer was bearish on Western Union (WU Quote), Sprint Nextel (S Quote), Wet Seal (WTSLA Quote), Nvidia (NVDA Quote), Flextronics International (FLEX Quote) and UnitedHealth Group (UNH Quote).

In the "Sudden Death" round, Cramer was bullish on JP Morgan (JPM Quote) and General Motors (GM Quote).

He was bearish on PepsiCo (PEP Quote) and Seagate Technology (STX Quote).

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

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

Here's your chance to pick the stock you'd like me to feature on my radio show Oct. 19:
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REMEMBER to listen in on Thursday for my take on the stock that wins this poll!
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At the time of publication, Cramer was long News Corp., Yahoo!, Johnson & Johnson and UnitedHealth Group.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on Mad Money are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

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