Cramer's 'Mad Money' Recap: Short-Squeeze Seize

The first stock is Waste Services (WSII Quote), he said.

The market believes this stock is trash because its margins are the lowest in the industry and its costs are high, Cramer said.

But even though it looks like a "heinous" company, Cramer reminded viewers that they're short-busting here.

Taking the first metric into consideration, Cramer said that 1.5 million shares of the company have been sold short. Although this might not seem like a lot, he told viewers that it's not the size of the short position that matters but the amount of time it would take to bring in that short.

In Waste Services' case, given that the average volume is only about 104,000 shares traded a day, it would take the shorts 15 days to cover their positions, Cramer said. In addition, the stock has a "significant insider presence."

Also, since Waste Services' fundamentals are improving -- the company should be profitable this year -- Cramer believes that it's time to play short-buster and buy some WSII.

Greenbrier's a Go

The next short-busting target Cramer named is Greenbrier Companies (GBX Quote), which makes and sells railroad freight-car equipment.

Although Greenbrier may have a lot of debt as well as "serious production issues," and even though it just missed its quarter earlier this month, Cramer believes that it's a great position to be in because the rail business is in a "multiyear bull market."