Cramer's 'Mad Money' Recap: Dec. 3

For a trade, Cramer likes Celgene ahead of the American Society of Hematology conference being held later this week. The conference, which will showcase the biotech's many achievements, is likely to boost the stock, he said. The company is expected to reaffirm its guidance for 44% revenue growth next year.

For the longer term, Cramer said Celgene is also one of the best recession-resistant stocks out there. Sales of Revlimid, the company's blood cancer drug, is expected to reach $3 billion by 2012. Celgene's No. 2 drug, Vidaza, is expected to hit $409 million in revenue by 2009.

With over 100 clinical trials in the works to expand the applications of its drugs, Celgene is on the right track, since approval for new uses of existing drugs is easier to come by than approvals for new ones, he said.

Cramer said Celgene also offers visibility and is a solid performer. The company has only barely penetrated the market with its drugs and yet has over $2.2 billion of cash on its balance sheet with no debt.

Down 25 points from its high, Cramer considers Celgene a serious buy at just 23 times its earnings. He said the company should be trading at 30 times earnings and is headed back to the high $60's.

Outrage of the Day

Cramer again took aim at Treasury Department and the Federal Reserve, this time for not deciding to buy mortgage backed securities over a year ago.

It's clear that buying these securities works, said Cramer, with mortgage rates now dropping, refinance activity picking up and money finally starting to flow through the struggling sector. So why then, he asked, did the Fed and Treasury not do this a year ago?

He said the arrogance and ignorance that these institutions is mind boggling. "These guys just never anticipated things would get this bad," he said.

Now that the government is on board, Cramer said it should be smoother sailing for the likes of Bank of America (BAC Quote), Wells Fargo (WFC Quote) and JPMorgan Chase (JPM Quote), another stock which he owns for his charitable trust Action Alerts PLUS.

Mad Mail

In this segment, Cramer told a viewer that he's a buyer of Freeport McMoran for his charitable trust Action Alerts PLUS, despite the company lowering its dividend.

Cramer told a second viewer that even the belabored Yahoo! (YHOO Quote) may see some upside once it receives a new CEO to replace Jerry Yang.

Am I Diversified?

Cramer talked with callers to see if their portfolios have what it takes. The first caller's portfolio included AT&T (T Quote), IBM (IBM Quote), Heinz (HNZ Quote), Southern Company (SO Quote) and ExxonMobil (XOM Quote).

Cramer blessed this portfolio as being perfectly diversified.

The second caller's top holdings included Bank of America (BAC Quote), Frontline (FRO Quote), Cisco (CSCO Quote), AirTran (AAI Quote) and Caterpillar (CAT Quote).

Cramer said he'd swap out Frontline for Nordic American Tanker (NAT Quote) but otherwise said it was a balanced portfolio.

The third caller had AT&T (T Quote), Pfizer (PFE Quote), Altria (MO Quote), Kinder Morgan (KMP Quote) and Nvidia (NVDA Quote) as their top five stocks.

Assuming Nvidia is a speculative stock, he said he'd bless this portfolio as well.

The fourth caller had Statoil (STO Quote), Merck (MRK Quote), Apple (AAPL Quote), Eaton (ETN Quote) and Goldman Sachs (GS Quote) as their top five stocks.

Cramer said he'd swap Statoil for Chevron (CVX Quote), but otherwise this, too, is a great portfolio.

Lightning Round

Cramer was bullish on Barrick Gold (ABX Quote), RPM International , Allscripts Healthcare , Eaton (ETN Quote) and Nokia (NOK Quote).

He was bearish on Microsoft (MSFT Quote), NYSE Group (NYX Quote), First Solar (FSLR Quote), Cerner (CERN Quote) and Motorola (MOT Quote).

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