Cramer's 'Mad Money' Recap: Top Three Speculative Plays for '07

He believes it can't go too much lower without "catching a takeover bid." Moreover, Cramer said this "seemingly innocuous stock" is also a "great inner-city" play.

That said, Cramer welcomed the "architect" of the store's turnaround, CEO Mary Sammons, to the show and asked her how it felt to be the chief executive of his second speculative pick of the year.

Sammons said it felt "great" and that Rite Aid would prove Cramer right.

When asked whether Rite Aid's expected savings of $150 million from its merger with Brooks-Eckerd was a low estimate of what could be saved, Sammons said it was.

The estimate doesn't take into account increased revenue and increased productivity from the stores Rite Aid is acquiring, she said. If a store is too small or in a bad location, Rite Aid's priority is to relocate it, Sammons continued. With each new store, the company tends to generate "strong double-digit gains for five years," she said.

Responding to a question about integration risk, Sammons said there is always risk but that Rite Aid is "well covered on it."

On the Level

Cramer's top speculative stock of the year is Level 3 Communications (LVLT Quote), a company that owns a broadband network and sells bandwidth.