Cramer's 'Mad Money' Recap: Routing the Short-Sellers

04/01/08 - 07:59 PM EDT

TheStreet.com Staff

"Nabors will make a killing once these rigs are contracted out," he said.

Cramer also likes Nabors for its valuation, noting that the company trades at just 9.1 times its earnings, which makes it the cheapest in the group. Given a more suitable valuation, Cramer said Nabors could see $48 a share.

According to Cramer, Nabors is good enough to unseat Transocean (RIG Quote - Cramer on RIG - Stock Picks) as his favorite oil and gas driller.

A Healthy Outlook

Cramer welcomed David Snow, Chairman and CEO of Medco Health Solutions (MHS Quote - Cramer on MHS - Stock Picks) for an update on the company's outlook.

The stock is down 11% since Cramer's last recommendation in September.

Snow said that his company is coming off of a phenomenal sales year. He said the company sold over $5 billion of new business and sees over $90 billion of branded drugs going off patent in the coming years. The company also raised its guidance by 5% on last conference call.

When asked about recent changes to Medicare's Part B program, Snow responded by saying that Medco will not be adversely affected by the changes. He also noted the company's stock buyback program has $2 billion of shares left to buy and the company is actively buying shares at these low levels.

Cramer called Snow a winner and said recent downgrades of Medco Health were just uncalled for.

Sudden Death

Cramer was bullish on Tidewater (TDW Quote - Cramer on TDW - Stock Picks) and Frontline (FRO Quote - Cramer on FRO - Stock Picks).

He was bearish on SCP Pool (POOL Quote - Cramer on POOL - Stock Picks) and Dryships (DRYS Quote - Cramer on DRYS - Stock Picks).

Lightning Round

In the Lightning Round, Cramer was bullish on Pepsico (PEP Quote - Cramer on PEP - Stock Picks), Coca-Cola (KO Quote - Cramer on KO - Stock Picks), General Mills (GIS Quote - Cramer on GIS - Stock Picks), Kellogg (K Quote - Cramer on K - Stock Picks), HJ Heinz (HNZ Quote - Cramer on HNZ - Stock Picks), Consolidated Edison (ED Quote - Cramer on ED - Stock Picks), Verizon (VZ Quote - Cramer on VZ - Stock Picks), Gushan Energy (GU Quote - Cramer on GU - Stock Picks), Intuitive Surgical (ISRG Quote - Cramer on ISRG - Stock Picks), AstraZeneca (AZN Quote - Cramer on AZN - Stock Picks), Hudson City Bancorp (HCBK Quote - Cramer on HCBK - Stock Picks), JPMorgan Chase (JPM Quote - Cramer on JPM - Stock Picks), Goldman Sachs (GS Quote - Cramer on GS - Stock Picks), Sirius Satellite Radio (SIRI Quote - Cramer on SIRI - Stock Picks), CSX Corp (CSX Quote - Cramer on CSX - Stock Picks) and Triple-S Management (GTS Quote - Cramer on GTS - Stock Picks).

Cramer was bearish on Cal-Maine Foods (CALM Quote - Cramer on CALM - Stock Picks), Time Warner (TWX Quote - Cramer on TWX - Stock Picks), Harley Davidson (HOG Quote - Cramer on HOG - Stock Picks), Zimmer Holdings (ZMH Quote - Cramer on ZMH - Stock Picks), Stryker (SYK Quote - Cramer on SYK - Stock Picks), Rite Aid (RAD Quote - Cramer on RAD - Stock Picks), Capital One Financial (COF Quote - Cramer on COF - Stock Picks), Onyx Pharmaceuticals (ONXX Quote - Cramer on ONXX - Stock Picks), YRC Worldwide (YRCW Quote - Cramer on YRCW - Stock Picks), Ford Motor (F Quote - Cramer on F - Stock Picks) and Genesis Lease (GLS Quote - Cramer on GLS - Stock Picks).

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.

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At the time of publication, Cramer was long Goldman Sachs.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

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