Cramer's 'Mad Money' Recap June 26

"The only thing they buy is their own stock," he said. Part of the reason the selloff was so bad today was that companies are forbidden to buy stock at the end of the quarter, Cramer said.

Cramer told viewers to sell Citigroup (C Quote - Cramer on C - Stock Picks) Washington Mutual (WM Quote - Cramer on WM - Stock Picks), Wachovia (WB Quote - Cramer on WB - Stock Picks), AIG (AIG Quote - Cramer on AIG - Stock Picks) Fannie Mae (FNM Quote - Cramer on FNM - Stock Picks) and Freddie Mac. "You know I'm fearful about GM and Ford (F Quote - Cramer on F - Stock Picks)," he said. "You know I don't like retail homebuilders."

He said that investors should always have gold in a diversified portfolio.

Cramer said that the companies that will rally are companies that offer what's in short supply and companies that rise in a recession. He said stocks like Chesapeake Energy (CHK Quote - Cramer on CHK - Stock Picks), Schlumberger (SLB Quote - Cramer on SLB - Stock Picks), Heinz (HNZ Quote - Cramer on HNZ - Stock Picks) and anything that supplies China with the copper, steel and coal that it needs is to be bought here.

"Raise cash; don't hold," Cramer told viewers. "We know that we ring registers here all the time. If you don't have cash, wait for things to go lower and then pick."

Another Play on Offshore Drilling

The future is offshore drilling, Cramer said. He said that politicians have blocked offshore drilling because historically it has polluted the coastlines. He said technological advancements have made drilling much cleaner in recent years.

"The stocks in play are cheaper, but the businesses are doing better," Cramer said. He said that he's been pointing viewers to cleaner-energy stocks for a while now. "Return to the long-term themes that are working when the market takes a huge hit like the one it took today," he said.

"You can buy good stocks for less money," Cramer said. "Tonight, our clean-drilling technology is drilling fluids. These fluids are the lifeblood of drilling." He said the fluids cool and lubricate drill bits and keep drill holes stable.

On that point, Cramer recommended Smith International(SII Quote - Cramer on SII - Stock Picks) as a drilling-fluid play.

He said the fluids are profitable to sell and have been successful in highly regulated areas like Europe. He said Smith and two other companies make up a drilling fluid oligopoly, making the stock more attractive.

The company has also issued a 15-million buyback authorization, Cramer said, which means it's a great stock. "If you buy it now, you're getting it for less than you would have two days ago," Cramer said. He said the company is "thrice blessed," and part of one of the few bull markets right now.

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