Cramer's 'Mad Money' Recap: Win With Golden Star Resources

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"Today my mission is to find you a newer, cheaper, better way to play the CNBC Million Dollar Portfolio Challenge," Jim Cramer told viewers of his "Mad Money" TV show Friday.

Golden Star Resources (GSS Quote - Cramer on GSS - Stock Picks), he said, is his "new favorite way" to play the stock-picking game.

Golden Star is a $4.46 stock for which Cramer urged people to use limit orders if they decide to buy it. The gold-mining company operates in West Africa and South America, and for that reason it's quite speculative, he said. However, Golden Star also has a big mine in Ghana, "an island of stability," making it slightly less speculative.

Also in Ghana, Golden Star is building a new sulfide-processing plant, which analysts are worried about, Cramer said. The skeptics are standing in the wings, giving market players an opportunity to buy.

Cramer said he's speculating that Golden Star's management might announce the opening of its new plant sooner than expected, which in turn should cause analysts to revise their estimates. "As revisions go up, the numbers should go up as well," Cramer said. The plant, he believes, should double Golden Star's gold production and decrease its costs.

The gold miner reports its quarterly results on May 10, just before the CNBC stock-picking game is set to end, Cramer said. A solid quarterly report should push Golden Star's stock price higher.

But whether or not people are playing the game, Cramer believes Golden Star is a good takeover target. Plus, because Golden Star is a gold miner, gold prices are moving the stock up, as well.

However, Cramer warned investors to think about the risks before buying Golden Star as it is a very speculative stock. He said he's not telling people to swap out of Yamana Gold (AUY Quote - Cramer on AUY - Stock Picks), but for the love of the game or a real profit, they should consider buying Golden Star.

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