Cramer's 'Mad Money' Recap: Dolby Stock Still Hums

eBay Stock's Worth the Bid

The time has come to buy eBay (EBAY Quote), the company that flushed $2 billion down the toilet to buy Skype and the same stock Cramer kicked around all summer, he told his viewers.

At $31 and change, Cramer dared, he said, to call it "a steal." "It has become the ultimate value stock."

At the price it's at right now ($31.30), the stock reflects all of the problems the company has but none of the positives, Cramer said. "It has gotten too cheap."

Although people generally know all of the bad things about eBay, the company also has some positive points, he said. For one thing, it owns PayPal, which Google (GOOG Quote) has been trying to conquer with an alternative service, Cramer said. "But for once, Google is losing."

He went on to say that he hasn't given Margaret Whitman, eBay's chief executive, enough credit. While Cramer's been talking the company down, she has been "wheeling and dealing" with other companies like Google and Yahoo! (YHOO Quote), a stock he owns for his Action Alerts PLUS charitable trust.

In May, eBay launched a new partnership under which it made Yahoo! "the exclusive provider of graphic advertisings and sponsored-search results on eBay, a great deal for eBay," Cramer said. In August, it made Google "the exclusive provider of text-based advertising outside the U.S."

In addition, it struck a deal in November with Baidu.com (BIDU Quote), under which Baidu will promote eBay's version of PayPal in China, Cramer said.

Moreover, said Cramer, not only does eBay have $3.2 billion in cash with no debt, but it is buying back stock.

Although this stock was previously "a victim of its own success," as the stock went too high and fumbled, "it is now worth owning," Cramer said. "Not only is it cheap, it's good."