Cramer's 'Mad Money' Recap: Metrics Matter

You don't need to be a madman to understand what makes stocks tick, he said. You just need to know the metrics. That's why Cramer said he likes Nike as a best of breed, and is making K-Swiss a triple sell.

On Spec

A great speculative story is MRV Communications(MRVC Quote), Cramer said.

MRVC is made up of three different businesses. The division Cramer likes the least is the network integration business, which accounts for 45% of the company's sales, is a slow grower, and has only 20% margins. It is just a cash generator, said Cramer.

The second division is the network equipment division. It has the highest gross margins (50%) at the company. These don't intrigue one bit, said Cramer.

Luminent, which makes up a quarter of MRVC's revenue, is the most appealing division and might be worth as much as the whole company combined.

Luminent will be spun off, said Cramer. Once that happens, MRVC will be making you money, Cramer said.

Game Plan

Chipmaker Intel(INTC Quote), has issues, Cramer said.

Even though the company might have a good quarter, the future is cloudy because of its price war with AMD(AMD Quote).

Intel tries to solve the problems by cutting prices, which hurts both companies.