Cramer's 'Mad Money' Recap: Shopping for Stocks

Second, the combined company is not a monopoly because there are so many other options in the market like terrestrial radio, high definition radio and portable players. Finally, the current market conditions are so horrible that it would be difficult for the FCC not to approve the deal.

According to Cramer, the cost savings of a combined Sirius/XM would be huge. Cramer expects the stock could double if the deal is approved. But even if it is not approved, Cramer still believes Sirius wins because of its better content and higher subscription growth.

Tips From a Small-Cap Fund Manager

Cramer welcomed Thomas McDowell, manager of the Rice Hall James Micro Cap Fund (RHJSX Quote), to the show to discuss his mutual fund strategy.

McDowell says his system uses fundamental analysis to choose small, under-the-radar and unique companies for his fund's portfolio.

One company that fits that bill is T-3 Energy (TTES Quote). McDowell says it is a little-known oil service company that supplies large drillers. T-3, he says, is just one of the 85 companies currently in his fund's portfolio.

After screening thousands of mutual funds, McDowell's fund is the only micro cap fund Cramer would recommend, Cramer says.

Lightning Round

Cramer was bullish on Sherwin-Williams (SHW Quote), Westinghouse Air Brake (WAB Quote), Anheuser-Busch (BUD Quote), Yum! Brands (YUM Quote), Ashland (ASH Quote) and Chevron (CVX Quote).

He was bearish on Nova Chemicals (NCX Quote), NutriSystem (NTRI Quote) and Ceradyne (CRDN Quote).

Want more Cramer? Check out Jim's rules and commandments for investing by clicking here.

For more of Cramer's insights during the Lightning Round, click here.