Cramer's 'Mad Money' Recap for July 14

He recommended mutual funds as great investment vehicles for those who don't have the time to do the homework and manage their portfolios.

"Perhaps the greatest thing I've ever done in my financial life was to scream "they know nothing" at the Federal Reserve last year," said Cramer. "If I hadn't yelled, no one would've heard me."

He urged investors to remain involved in their portfolios. "The results are completely worth the effort," he said.

The Real Danger

Cramer reminded viewers of another rule in book Real Money. Control your losses and the winners will take care of themselves, he said. He then instituted a new rule for the financial stocks: If a bank stock falls below $5 a share, it's time to sell.

Cramer made a clear distinction between the customers and depositors of the failed and nearly failed banks and the shareholders of these entities. He said he does not feel customers need to withdraw their money. "Your deposits are safe," he emphasized, calling that the silver-lining of the financial story.

However he went on to say that while deposits are fine, the stocks of the banks are not. And that's the real "danger," he said.

Cramer said he doesn't believe anything remotely positive has happened yet for the banking industry. The many plans, frameworks and blueprints that have been espoused don't change a thing.

He said he's most worried about Downey Financial (DSL Quote), Corus Bankshares(CORS Quote), FirstFed Financial (FED Quote) and BankUnited (BKUNA Quote).

He is also deeply concerned with National City (NCC Quote), Washington Mutual (WM Quote) and First Horizon (FHN Quote).

Cramer was also bearish on Citigroup (C Quote), Wachovia (WB Quote) and Bank of America (BAC Quote), and even brokers such as Lehman Brothers (LEH Quote) and Merrill Lynch (MER Quote).

Back in Style

Cramer proclaimed his "year of natural gas is back!" With the successful secondary offering of shares by Chesapeake Energy (CHK Quote) last week, Cramer said it's finally safe to invest in natural gas stocks.

Cramer has featured wildcat drillers, oil shale companies and clean drilling stocks in past shows. On Monday, he said the next opportunity is the pipeline companies.

While he still believes in Spectra Energy (SE Quote), Cramer feels that Williams Brothers (WMB Quote) is another great company to own.

Cramer said his thesis is simple: the more gas there is, the more demand for gas infrastructure there will be.

Williams, he said, is expanding from the New York City area further in the mid-Atlantic region, where there are millions of potential customers. The company is also building pipelines to transport more gas from the Rocky Mountains.

Cramer also finds Williams' drilling operations attractive. With over 22 trillion cubic feet of proven gas reserves, the company is drilling as much as it can while remaining a low-cost producer. Williams also has 50% of its 2008 production un-hedged, allowing it to realize huge gains as the price of gas continues to rise.

Williams is a company that can make money now, he said.

A Stock Worth Considering

In his quest to find stocks not levered to mortgages or the rising price of oil, Cramer talked with Catherine Burzik, President and CEO of Kinetic Concepts (KCI Quote), for an update on her business.

Burzik said Kinetic Concepts is a lot more than just wound care products. With the recent acquisition of LifeCell Corporation, Kinetic Concepts now has products to treat complex hernias as well as breast reconstructive surgery after mastectomies. She also touted the company's hospital beds as the best in the industry for aiding in the treatment of ulcers and other conditions.

Burzik said she feels the company's stock is grossly undervalued, but hopes investors begin to see the synergies realized from the merger. Cramer said he likes the healthcare group, but wants to see one more quarter of results before recommending the stock.

Lightning Round

Cramer was bullish on Hercules Offshore (HERO Quote), Airgas (ARG Quote) and Laboratory Corp. of America Holding (LH Quote).

He was bearish on Encore Wire Corp (WIRE Quote), Statoil (STO Quote) and Quest Diagnostics (DGX Quote).

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For more of Cramer's insights during the Lightning Round, click here.