Cramer's 'Mad Money' Recap: Four Ways to Play Iran

MasterCard: Smart Move

Private equity firm Kohlberg Kravis Roberts is buying credit-card processing company First Data (FDC Quote) for $34 a share, Cramer told his viewers. But the "real beneficiary" in this deal is MasterCard (MA Quote), he said.

"If First Data is worth $34, then MasterCard should easily be worth $130 to $140 a share," Cramer said. "MasterCard is masquerading as a $106 stock."

Cramer asked viewers to think why a "smart outfit" such as KKR would buy First Data in the first place, especially since FDC is not well run. It's because KKR is placing a "secular bet on plastic and the processing of plastic worldwide," he explained, and the "ultimate plastic play is MasterCard."

MasterCard is involved in litigation that has kept the stock back, but Cramer doesn't believe it's a real problem. He said MasterCard is a stock the Street and the media doesn't get. "Sure it has run up, but it should never have been priced so low," Cramer said.

A lot of people in the media think MasterCard is a money lender, but it doesn't lend money, he said. "It is a transaction-payments play," Cramer said. "Its merchant processing business is an irreplaceable franchise," processing 40 million transactions a day.

Plus, MasterCard has "tremendous opportunity" in China and Latin America and is thus a play on the rest of the world, he said. Cramer called MasterCard the "technological leader in its field" with "true organic revenue and profit growth."