Cramer's 'Mad Money' Recap: Misery Loves Usury

03/08/07 - 07:57 PM EST

AEA ARTE CHE CSH GS (Action Alerts PLUS PICK) T

Even though Chemed has "recovered significantly" from the downturn, it is still a buy, according to Cramer, for one main reason: It reported great earnings and guidance right before the market downturn.

Both of Chemed's divisions -- its Vitas hospice operation and its Roto-Rooter plumbing business -- are good, but "the real story is about the earnings," he said. "We like it because it blew away its numbers when it reported Feb. 21, a week before the selloff."

After reporting its quarter, Chemed jumped almost $7 in a day, and last week's selloff took it down $2, Cramer said. Although that's not a significant pullback, he said he believes the stock is "immunized against recent downside," and he would buy it "before it gets its mojo back."

Sell Block

In the show's "Sell Block" segment, Cramer looked back at some recent initial public offerings. He told viewers to sell Fortress (FIG - Cramer's Take - Stockpickr) and instead pick up Goldman Sachs (GS - Cramer's Take - Stockpickr), a stock he owns for his Action Alerts PLUS charitable trust and believes is "cheaper and a better company."

Cramer also suggested people sell Melco PBL Entertainment (MPEL - Cramer's Take - Stockpickr) and IPG Photonics (IPGP - Cramer's Take - Stockpickr) "on any strength."

"Melco has been an unmitigated disaster ... and I apologize for getting this one wrong," he said. And IPG Photonics wasn't a great call either. "I'd cut my losses and take profits."

Although Cramer said he has no excuse for his Melco recommendation, he said he "extrapolated" it from Wynn (WYNN - Cramer's Take - Stockpickr) and Las Vegas Sands (LVS - Cramer's Take - Stockpickr), thinking that Melco would follow in their footsteps.

However, it is a good thing he told viewers to stay away from Artes Medical (ARTE - Cramer's Take - Stockpickr) because the stock hasn't been doing well, Cramer pointed out.

Right now he said he would be buying Switch & Data Facilities (SDXC - Cramer's Take - Stockpickr), which he believes should have "positive news flow in the near term" and which he believes is "cheap" compared with its competitors.

Cramer said he would also buy AeroVironment (AVAV - Cramer's Take - Stockpickr), "a great defense play," and Opnext (OPXT - Cramer's Take - Stockpickr), but only on weakness.