Cramer's 'Mad Money' Recap: Best Little Stocks in Texas

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"Everything's bigger in Texas, so I knew I had to come here with four big stocks based in Texas," Jim Cramer told his live student audience at the McCombs School of Business at the University of Texas at Austin as part of his "Back to School" tour on his "Mad Money" TV show Tuesday.

These best-of-breed Texas stocks are all "trading at a discount" and have been "dissed by the Wall Street moneymen," he said. "I would buy them right here, right now."

The first of Cramer's Texan picks was J.C. Penney (JCP Quote), which he called "the best, most consistent retailer in the country."

J.C. Penney recently admitted that it has to alter its product mix, and since then it has taken almost a 10% hit, Cramer went on to say. "It has been hammered," he said. "It's ridiculous."

Pick No. 2 was Transocean (RIG Quote), which he owns for his charitable trust, Action Alerts PLUS.

"RIG's a driller, and it's my favorite," Cramer said. The company has very little exposure to the weak markets of the Gulf of Mexico and Canada drilling, he said. "RIG is the biggest in the game and among the cheapest."