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

Sell Block: Eating Crow

In his "Sell Block" segment, Cramer said he got Hershey (HSY Quote) wrong and encouraged people to sell the stock once it hits $50. Hershey shares closed Thursday at $49.34. The company on Wednesday lowered its earnings projections.

After Sirius Satellite Radio (SIRI Quote) lowered its sales outlook this week, Cramer realized that although he thought it didn't need to merge with XM Satellite Radio (XMSR Quote) to do well, he was wrong.

He said he's going back to the way he felt originally, which is that there's too much competition and not enough demand for Sirius to succeed without merging with XM. "It's probably not going anywhere except slightly down unless it gets that merger with XM Radio," Cramer said.

Also, even though he liked Panera Bread (PNRA Quote), Cramer said the company recently reduced its earnings forecast because of storms in the Midwest.

He does not believe that the storms, which only affected 40 out of Panera's 976 bakery cafes are the reason for the reduction, however. "I believe its growth is slowing," Cramer sad. "It is running out of steam and I was wrong to recommend it. Get rid of it."

Moving on, Ford (F Quote), which he suggested buying as "a turnaround play," is now issuing convertible bonds at a 4% yield.

"Now [buying] the common stock is plain wrong," Cramer said. "If you want to play Ford, then play it with the convertible bond for less-risky exposure."

He also advised market players to take some profits in Smith & Wesson (SWHC Quote) and Bankrate (RATE Quote).