Cramer's 'Mad Money' Recap: 'Tis the Season for Stocks

Perfect World

Cramer said he stands corrected on Perfect World (PWRD Quote) and is turning his previous sell on the company into a buy.

When a viewer called in last week during a "Lightning Round" segment, Cramer said he put Perfect World in the "Don'tBuy" camp because he tends to be skeptical about Chinese stocks, because they lack stringent securities regulation. "I let my professional bias come between me and what I now know is a great idea," he said.

Perfect World, Cramer said, does file financials. Furthemore, he said, it has put up great numbers and just had an enormous upside surprise, where it beat earnings estimates by 81% and sales estimates by 43%.

"Perfect World is worth owning," he said, noting it has real customers and solid earnings visibility. Cramer said the decision by Vivendi, a developer of interactive games, to buy Activision underscores the increased popularity of these interactive role-playing games are.

He said Perfect World is ahead of the competition, with new games on the horizon. He said he expects Perfect World to benefit from the launch of the highly anticipated "Chi Bi" game set to come out later this month.