Cramer's 'Mad Money' Recap: July 9

Becton Dickinson derives 55% of its sales overseas, which Cramer said shields it from U.S. economic woes. The company is down from its 52-week high of $93 a share in January to just $81 today, a perfect entry to pick up the stock, he said.

Cramer said much of the stock's decline has been due to fears that higher oil prices adversely affect the cost of resins the company uses for its products. But Cramer said it's a mistake to treat a medical company like a chemical company and feels these worries have been overdone.

The 3G-iPhone Bounce

While the launch of Apple's (APPL Quote) new 3G iPhone just days away, Cramer said it's preposterous that shares of AT&T (T Quote), the iPhone's lone carrier, are in the low $30's.

"Does anyone need to explain how great this product is anymore," said Cramer. "I believe this new phone is going to sell."

He noted that AT&T has lowered its earnings expectations ahead of the launch, making the estimates that much easier to exceed next quarter. Cramer said he would trim any position in Apple ahead of the launch and roll those profits into AT&T which currently yields 6%.

Cramer said despite subsidizing the initial purchase of the iPhone, AT&T is poised to make even greater profits over the life of the contract, with higher priced data plans and additional charges for SMS messaging.

AT&T trades at 10 times its 2009 earnings, while competitor Verizon (VZ Quote) trades at 12.4 times its estimated 2009 earnings. Cramer said that makes AT&T cheap in his book.

Am I Diversified?

Cramer reviewed the portfolios of callers to see if their portfolios have what it takes. The first caller's portfolio included Apple (AAPL Quote), Goldman Sachs (GS Quote), Petrobras (PBR Quote), Visa (V Quote) and Valero (VLO Quote).

Cramer identified two pair in this portfolio and advised selling Visa for a drug company and Valero in favor of a defensive food play.

The second caller's top holdings included Deere & Co (DE Quote), El Paso (EP Quote), Quanta Services (PWR Quote), Freeport McMoran (FCX Quote) and Yamana Gold (AUY Quote).

Cramer said both Freeport and Yamana are two-of-a-kind and advised selling one in favor of a defense stock.

Mad Mail

In this segment, Cramer told a viewer that both Oil States (OIS Quote) and Gulf Island Fabrication (GIFI Quote) are good high-tech oil stocks, but he's not a buyer until the retreat in the market is over.

Cramer told a second viewer that with Cisco (CSCO Quote) forecasting slower sales, stocks like Blue Coat Systems (BCSI Quote) should be avoided.

Cramer told a third viewer that he's not a buyer of Tata Motors (TTM Quote) despite their alternative fuel vehicles.

Lightning Round

Cramer was bullish on First Solar (FSLR Quote) and Costco (COST Quote).

Cramer was bearish on Evergreen Solar (ESLR Quote), Johnson Controls (JCI Quote), Gran Tierra Energy (GTE Quote), Office Depot Inc (ODP Quote), Martin Marietta Materials (MLM Quote) and Exxon Mobil (XOM 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.