Cramer's 'Mad Money' Recap: Pedal to the Metals

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After the Fed's rate cut, it's time for investors to make some speculative mining plays, Jim Cramer told viewers on his "Mad Money" TV show Friday.

The half-point cut on Tuesday has raised the value of hard assets against paper money. Additionally, lower Fed rates lead to higher economic activity, which leads to more consumption of metals, Cramer said.

For a sexy speculative buy, Cramer recommended Lundin Mining (LMC Quote). Although the company has had its ups and downs, Lundin now deserves "two thumbs up."

Lundin has major exposure to four metals: zinc, copper, nickel, and lead. After acquiring Tenke mining and Rio Narcea earlier this year, Lundin is bigger than ever. By purchasing Rio Narcea and Tenke, Lundin has increased its nickel and cobalt exposure, Cramer said.

Asian consumption of zinc "continues unabated," driving up zinc's price by 3% this week, Cramer said. Lundin has captured this price rise, so its earnings should increase. With China and India importing record amounts of zinc and nickel, respectively, the increase in demand should continue. Additionally, Lundin has seen some insider activity. Lundin is a great buy at $12 per share, Cramer said.

Cramer's second metal pick, Horsehead Holding (ZINC Quote), looks like "a solid blue chip." An "under-the-radar IPO" in August, Horsehead is almost certainly undervalued, Cramer said.