Cramer's 'Mad Money' Recap: Stocks When They Sizzle

The company makes point-of-sale electronic payment devices -- the credit- and debit-card-swiping machines found at checkout counters -- that people use to make purchases, Cramer explained. It is "by far the market leader in this game," with a hold on 34% of worldwide POS sales, Cramer added.

In addition, the company has a big upgrade cycle coming in the U.S., and the terminals will need to be replaced. As VeriFone's customers make most of their money during the holidays, Cramer believes they should be willing to shell out money to upgrade their machines now.

Plus, VeriFone has "tremendous opportunities" to expand in the developing world, which means more business for the company, Cramer said.

The bottom line is that the stock is cheap and should be bought, he said.

"It is one part ancillary Christmas play and 10 parts great stock."

NightHawk Vision

Cramer welcomed his guest, Dr. Paul Berger, chairman and CEO of NightHawk Radiology (NHWK Quote), to the show and asked him about the company's hospital growth.

"The hospital growth has been terrific," Berger responded. "At the end of the third quarter this year, we have approximately 981 hospitals which send us images every night, or approximately 18% of the hospitals in the U.S. And that's been a growth of 121 hospitals over the first nine months of 2006."