Cramer's 'Mad Money' Recap: Game Plan for Next Week

07/13/07 - 08:19 PM EDT

TheStreet.com Staff

Cramer said that these stocks, which he began recommending on Monday, were up an average of 5.2% since he first mentioned them this week. "I've discovered alchemy," Cramer said.

The last stock on the list is Terex (TEX Quote - Cramer on TEX - Stock Picks), Cramer said. In addition to having the right price, Cramer said he rates Terex a buy because of its exposure to the "wild bull market" in infrastructure and machinery.

Though Terex is in the same business as Caterpillar, Cramer said it was not a redundant pick because not all of Terex's operations are in competition with Caterpillar's. "Terex's bread and butter is in aerial work platforms," said Cramer, which Caterpillar does not manufacture.

In addition, Cramer said he liked Terex's crane business, despite competition from Manitowoc (MTW Quote - Cramer on MTW - Stock Picks).

Incredibly Risky Plays

"You have a duty to yourself to take a chunk of your portfolio -- no more than 20% of your nonretirement money, your mad money -- and invest it in incredibly risky stocks," Cramer explained to viewers before introducing his pick for Speculation Friday, GeoEye (GEOY Quote - Cramer on GEOY - Stock Picks).

Though GeoEye is the largest commercial satellite imaging company, it remains unprofitable, Cramer said. He called the stock "very risky" and cautioned viewers not to use market orders if they choose to purchase it.

Citing increased demand from governments for outsourced satellite imagery, as well as programs such as Google Earth that make use of satellite imaging, Cramer said that GeoEye is well positioned to thrive because it is part of a "virtual duopoly" in the industry and its main competitor is not publicly traded.

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TASR was an Stocks Under $10 pick on 2008-01-09