Cramer's 'Mad Money' Recap: The Next Great Diagnostics Play

PDL BioPharma has taken its money from royalties and "spent it like a drunken sailor," he said. "This was a company that should have been printing money, but it was bleeding it."

Some excessive spending includes PDL BioPharma's $500 million acquisition of ESP Pharma and $200 million to $250 million in capital expenditures when the company thought it was three years away from delivering its first drug, Cramer said.

Cramer said he got the idea from Stockpickr.com's portfolio of stocks targeted by activist investors.

Mad Mail

In his "Mad Mail" segment, Cramer told a viewer that he prefers Transocean (RIG Quote), which he owns for his Action Alerts PLUS charitable trust, to Weatherford International (WFT Quote) because the latter has too much exposure to Canada.

Responding to another mailer, Cramer said he would pull the trigger on Quest Diagnostics (DGX Quote), which he also owns for his charitable trust, because it has a big buyback and he believes "it's a bull stock."

Lightning Round

Cramer was bullish on Transocean (RIG Quote), Washington Mutual (WM Quote), Bank of America (BAC Quote), Thermo Fisher Scientific (TMO Quote), Western Union (WU Quote), Freeport-McMoRan (FCX Quote), Best Buy (BBY Quote), Northern Orion Resources (NTO Quote), Lundin Mining (LMC Quote), BigBand Networks (BBND Quote) and Cisco (CSCO Quote).

Cramer was bearish on Helix Energy (HLX Quote).

There Goes Swifty!

During his "Sudden Death" round, Cramer was bullish on Western Refining (WNR Quote), Valero Energy (VLO Quote) and Energy Metals (EMU Quote).

For more of Cramer's insights during the most recent Lightning Round, click here.

Want more Cramer? Check out Jim's rules and commandments for investing from his popular book by clicking here.