Cramer's 'Mad Money' Recap: Qwest for Contract Gold

Pico Water Capacity

While Cramer was visiting the McCombs School of Business at the University of Texas at Austin earlier this week as part of the show's "Back to School" tour, a student asked him for a play on the scarcity of water.

In response to that question, Cramer named a small, speculative stock: Pico Holdings (PICO Quote).

However, Cramer urged people to do their homework before buying the stock and advised viewers to use limit orders if they decide to buy. Pico is the first real play on the scarcity of water that Cramer said he is willing to mention on the show.

Pico is not a water utility, and it doesn't plan on entering the "not-so-friendly-to-Cramer" water utility market, he said. The company instead engages in two enterprises Cramer likes: First, it gathers water in the middle of desert and sells it, surely for a big premium, and second, it has a water pipeline, which Cramer finds "interesting."

Pico's 35-mile-long pipeline is under construction. Oil pipelines have been "extremely profitable" for oil companies, and Cramer sees similar potential for Pico and its water pipeline, especially as soon as water prices rise.

But because this company is small, it's also risky, Cramer pointed out. There is very little research on it, with only one analyst covering it, he said. But this shouldn't last for long, because "water is becoming too hot for it to stay under the radar."

Cramer clarified that he is not giving Pico a buy. He's giving it to people so that they can do their own homework and decide for themselves whether to buy it.