Cramer's 'Mad Money' Recap: July 10

Cramer also liked the fact Hospira is cutting costs. The company closed five facilities, which should add 9 cents a share to the company's 2010 earnings. It has also increased its operating margins, from 14.9% in 2004, to just over 16.9% today, with the goal of reaching 19.9%.

"I think Hospira has what we want from the healthcare stock," said Cramer.

Getting Back In

"I think the moment's right to start buying natural gas," Cramer told viewers. After warning that the sector would be hit and hit big last Wednesday, Cramer said it's finally time to get back into the natural gas stocks.

Cramer said he's still a fan of Chesapeake Energy (CHK Quote), but not for the reasons viewers might think. Last night, Chesapeake completed a secondary offering of 25 million shares at $57.25 a share. Today the stock closed at $61.58 a share for a 6.7% gain in just a single day. "That's the all-clear signal we've been waiting for," said Cramer.

He said that secondary share offerings normally are bad for current shareholders and dilute value. However, that's not the case with Chesapeake because the company plans to use the money to increase drilling, a move that's seen as wildly bullish for the stock, he said.

Cramer cited five of Chesapeake's previous secondary offerings, noting that all five have made money in the past. The company issued shares on March 27, 2008 at 26% below the current share price; on Sept. 26, 2007 at 48% below the current price; on June 27, 2006, at 53% below the current price; on Sept. 8, 2005, at 47% below the current price and on Sept. 9, 2005, at 76% below the current price.

Cramer also voiced his support for Chesapeake CEO Aubrey McClendon, whom he said is the most bankable CEO in America.

HMO Woes

In the "Sell Block" segment, Cramer gave viewers a list of stocks which he said are the real losers of the new Medicare spending bill that Congress just passed Wednesday. According to Cramer, the managed care providers will be hardest hit by the new $12.5 billion spending package.

Cramer told viewers to "stay the heck away from the managed care companies." He said that Healthspring (HS Quote), which gets 88% of its revenues from Medicare, will be hardest hit by the new plan.

Also on the list are Humana (HUM Quote), Coventry (CVH Quote), HealthNet (HNT Quote) and Triple-S (GTS Quote), all of which have Medicare exposure.

Cramer also added former favorite United Healthcare (UNH Quote), which only has 12% exposure to Medicare, to the list, calling the company "a serial destroyer of wealth."

Cramer said managed care companies are also poised to be hit by the shrinking economy. "When unemployment rises, membership in HMO goes down," he said. With these companies getting hit from both ends, Cramer said they just can't be owned.

Wachovia's New CEO

Cramer had high praise for Treasury Under-Secretary Bob Steel, who resigned his position to head the ailing Wachovia Bank (WB Quote).

He called Steel "one of the great behind the scenes player" and one of the integral players behind the recent JP Morgan Chase (JPM Quote) and Bear Stearns (BSC Quote) merger.

Cramer said the turn-around of Wachovia will take time, and he's still would not be a buyer of the bank at this time.

Sudden Death

Cramer was bullish on Clean Harbors (CLHB Quote), Spectra Energy (SE Quote) and Johnson & Johnson (JNJ Quote).

He was bearish on CVRD (RIO Quote).