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

Stock quotes in this article: LEH , AMAT , NBR , RIG , MHS , TDW  

"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) as his favorite oil and gas driller.

A Healthy Outlook

Cramer welcomed David Snow, Chairman and CEO of Medco Health Solutions (MHS Quote) 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) and Frontline (FRO Quote).

He was bearish on SCP Pool (POOL Quote) and Dryships (DRYS Quote).

Lightning Round

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

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

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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."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

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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