Cramer's 'Mad Money' Recap: A Home-Grown Natural Gas Play

Range Resources is also a growth story, said Cramer. The company recently raised its production guidance from 15% to 19% for 2008 and plans to double the number of operating rigs by 2009.

The company recently did a secondary offering of stock at $66.38 a share to help fund additional land acquisitions in the Marcellus shale area, but now trades below that price. "Range Resources should have never gotten this cheap," said Cramer.

A Grim Outlook

In the "Sell Block" segment, Cramer put ConAgra Foods (CAG Quote) in solitary confinement and told investors to steer clear.

Cramer endorsed buying ConAgra back on April 29, but with the stock now retracing its steps, he said it's time to re-evaluate. Cramer said he now feels the company's rising raw costs have worsen the situation.

Cramer took special notice of ConAgra's CEO, who was recently quoted as saying that "Inflation input costs are through the roof." "This makes it almost impossible for ConAgra to meet Wall Street's estimates," said Cramer.

With corn now 76% more expensive, wheat 39% more expensive and cattle and oil and gas all following suit, ConAgra's outlook has gone from good to grim. "They're going to be eaten alive by raw costs," said Cramer.

Cramer said he hears the train coming and wants investors to step off the tracks before its too late. He recommended considering either Pepsi (PEP Quote) or Coca-Cola (KO Quote). He said both have told Wall Street that their raw costs are now under control. He also recommended Altria (MO Quote), which he owns for his charitable trust, Action Alerts PLUS, as another great recession stock with costs under control.

Rex Energy: Part II

On April 10, Cramer picked Rex Energy (REXX Quote) during his series of wildcat drillers. In just two trading days, the stock has surged 6.2%.