Cramer's 'Mad Money' Recap for July 11

PPG shares are down 13% since just May 30, making it the perfect entry point, he said. Cramer praised the company's strong management and said they are committed to increasing shareholder value.

With 53% of its sales overseas, Cramer said PPG is a safer stock than investors might think since it had only 25% of its sales overseas just two years ago. The company also has only 5% exposure to housing and only 15% exposure to the automotive industry.

Cramer, a fan of PPG's aerospace and specialty products divisions, is also bullish on its recent acquisition to get into the alternative energy space. The company now derives 5% of its sales from coatings for solar cells and windmill blades.

Cramer said PPG and its peers are incredibly cheap. If the company were given a more realistic multiple, Cramer said the stock should be worth $81 a share. "Even without a takeover, PPG is cheap," he said.

Game Plans

"The speed in which Freddie Mac (FRE Quote) and Fannie Mae (FMN Quote) evaporated was just frightening," said Cramer.

Cramer rolled out his own game plan to deal with the crisis. He said the administration should guarantee all debt from both companies and take 20% of the companies in warrants. By doing this, mortgages would be become the new treasurys, and investors would scramble to buy mortgages and sell treasurys.

He predicted the mortgage market would rally under this plan, which he said is not a bailout, with liquidity flowing back into the system. Furthermore, his plan could lower mortgage rates, stop the decline in housing and send bank stocks from bear to bull.

Looking at next week's earnings reports, Cramer recommended picking up Genentech (DNA Quote), buying half a position before the company reports on Monday and the other half after.

On Tuesday, Cramer said he'd be bullish on both Eaton (ETN Quote) and Johnson & Johnson (JNJ Quote), calling Johnson "probably the best story of the week."

Cramer said he's no fan of Intel (INTC Quote), which also reports Tuesday, but would consider VF Corp (VFC Quote), which has already indicated better-than-expected earnings.

On Wednesday, Cramer said he'd be a buyer of YUM Brands (YUM Quote) ahead of the Olympics, but would wait until after its earnings are announced.

For Thursday, Cramer said he's bullish on Coca-Cola (KO Quote) and might consider JP Morgan (JPM Quote) ahead of its earnings, but only if the markets get hit earlier in the week.

Cramer said he's bearish on AMD (AMD Quote), IBM (IBM Quote), Microsoft (MSFT Quote) and Merrill Lynch (MER Quote), all of which report on Thursday.

OK on Natural Gas

Cramer welcomed Katie McGinty, Pennsylvania's secretary of environmental protection, to the show to discuss the state of oil and natural gas drilling, particularly in her state's oil shale regions.

McGinty called oil and natural gas a huge natural resource that's a great economic opportunity for her state.

She said the state has plenty of water to support drilling, but her agency wants a better set of rules for drilling companies to follow. McGinty said that there are adequate water treatment facilities in place to handle the waste needs of increased drilling.

McGinty said that in the past three years, her state issued approximately 25,000 oil and natural gas permits, and the Marcellus shale region has been granted 130 permits so far this year.

Asked about the recent decline in coal output, McGinty said the shortfall has nothing to do with a shortage of coal, but rather with supply and demand pricing.

Cramer continued to support the oil and natural gas drillers.

Lightning Round

Cramer was not bullish on any stock. He was bearish, though, on RealNetworks (RNWK Quote), Continental Resources (CLR Quote), Regions Financial (RF Quote), Natus Medical (BABY Quote), CIENA Corp (CIEN Quote) and Skyworks Solutions (SWKS Quote).

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