Cramer's 'Mad Money' Recap: Bye, Bye Bears

Finally, Cramer called the Security and Exchange Commission's short-selling protection plan for the financial stocks "monumental," saying that the move will finally stabilize the financial sector. He also praised the Federal government's plan allowing banks to sell bad mortgages to the FHA for just 80 cents on the dollar.

"The next big dip in the market may be the last one," he said.

Ride the Blackberry Bold

Cramer proclaimed that August will be Research In Motion (RIMM Quote) month, ahead of the launch of its newest product, the Blackberry Bold. "The iPhone isn't the only way to show off to your friends," joked Cramer, who called Research In Motion a steal at just $119 a share.

Cramer based his Blackberry thesis on a number of new product releases scheduled for the next few months. In addition to the Bold, Research in Motion is set to release the Kickstart, dubbed the Motorola (MOT Quote) killer, and the Thunder, which is said to be the first serious iPhone contender.

In addition to the new products, Cramer noted the company's further expansion into overseas markets. He was not concerned by Research In Motion's recent earnings guide-down, attributing the shortfall due to simply an increase in marketing and research and development costs for the many new products on the runway.

Cramer said he's also not concerned about Apple's (APPL Quote) iPhone affecting the company's bottom line. "There plenty of room for both companies to grow," he said.

Finally, Cramer cited his past track record with RIMM as another reason to buy the stock. He said the company's shares have risen 117% since he last recommended the stock on June 6, 2007 at $53.04.

A Linux Treat

Cramer talked with Jim Whitehurst, president and CEO of Red Hat (RHT Quote), a company which Cramer said he's never fully understood or appreciated.

Whitehurst said Red Hat has a special business model that no other competitors have. The company's large developer community provides it with great software at little cost, allowing Red Hat to have higher than average margins.

He further explained that Red Hat's Linux operating systems run in many large, mission critical applications where Microsoft (MSFT Quote) just can't compete. He cited the NYSE Euronext (NYX Quote) as one such large customer.

Whitehurst said that Oracle (ORCL Quote) is a partner of Red Hat and not a competitor, saying that the company recently endorsed Red Hat as its operating system of choice.

Cramer called Red Hat an inexpensive stock when compared to its growth rate and recommended looking into the company as an investment.

Am I Diversified?

Cramer talked with callers about their portfolios. The first caller's portfolio included General Mills (GIS Quote), Boeing (BA Quote), Darden Restaurants (DRI Quote), AT&T (T Quote) and IBM (IBM Quote).

Cramer said all five companies are very well run and called this portfolio "perfect."

The second caller's top holdings included Vivo (VIV Quote), Dr Reddy's (RDY Quote), Tata Motors (TTM Quote), Coca Cola (KO Quote) and Motorola (MOT Quote).

Cramer called two of a kind with Vivo and Motorola. He recommended selling one of them in lieu of a defense contractor or large conglomerate.

Lightning Round

Cramer was bullish on Core Labs (CLB Quote), Nordic American Tanker Shipping (NAT Quote), Frontline (FRO Quote), Verizon (VZ Quote), Celgene (CELG Quote), Panera Bread (PNRA Quote) and Alcoa (AA Quote).

He was bearish on Input/Output Inc (IO Quote), Ford Motor (F Quote), Double Hull Tankers (DHT Quote), Red Robin Gourmet Burgers (RRGB Quote) and Eastman Kodak (EK Quote).

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