Cramer's 'Mad Money' Recap: A Yardstick for Sears

DST Is Ripe for Buying

When State Street (STT Quote) bid to buy asset management firm Investors Financial Services (IFIN Quote), it should have caused other stocks in that line of business to leap, Cramer said.

Particularly, he believes "DST Systems (DST Quote) should have gone up huge on the State Street bid." That it did not was "wrong," Cramer said. "It should have shot up."

Because Cramer believes DST is the next takeover target, he recommended people buy it before it gets bought out. The Street missed the chance to get into this stock, and now it's an opportunity, he said, adding that even if DST is worth less than Investors Financial, DST should still go up to $88. DST closed at $71.94 Thursday.

Cramer said the company likely will not be independent a year from now because, he believes, Bank of America (BAC Quote) or SunTrust (STI Quote) could buy it.

If no takeover happens, Cramer still considers DST a buy because its last quarter was a "blowout" and, despite its recent run, the stock is inexpensive. Right now, he said, is a good entry point because DST "has a bulls eye painted on its back and its fundamentals are good."

Sell Block

In his "Sell Block" segment, Cramer apologized for putting Avon's (AVP Quote) Andrea Jung on his CEO wall of shame, because Avon just reported a "terrific" quarter and "the company showed real growth after a long time."

However, he advised people to sell Wells Fargo (WFC Quote), a bank he's "liked seemingly forever," because he feels the stock has gotten expensive. While he said people don't need to dump their whole position, he did recommend taking some off the table and swapping into Goldman Sachs instead.

Also, even though Cramer said he's liked Abercrombie & Fitch (ANF Quote) for a long time, now he believes it's time to close off the position and take profits in the stock.

Lastly, he advised selling Circuit City (CC Quote) and buying Best Buy (BBY Quote).