Cramer's 'Mad Money' Recap: Sellers Nowhere in Sight

Cramer said that if investors cannot figure out how a money manager is making their returns, it's time to get out. In the case of Madoff, Cramer said even his seasoned staffed were unclear where Madoff's profits were coming from after looking at the funds statements and filings.

Cramer also reminded viewers that if returns are too good to be true, they are. He said that Madoff's "profits" were way too consistent to be real. "Nobody is that consistent for that many quarters in a row."

Cramer told viewers to also look into how a fund is structured. Accountants, he said, should always report to the investors, he said, and not management. Firms should also have separate brokerages, not inside brokerages as Madoff had. It's way too easy to hide losses that way, he said.

Finally, Cramer said Madoff's fee structure should have also been a red flag. Hedge funds typically have a 2% management fee and take 20% of the profits, he said, but in the case of Madoff, fees were based on trading. Never trust a fund who gets paid to trade, he said.

Cramer's bottom line: Investors need to do their homework and research who's managing their money.

Speculation Friday

For this segment, Cramer said there just might be a lot of money to be made in the most beaten down of technology stocks. He offered up three companies which he said are ready for a serious rebound.

Cramer said semiconductor maker Ciena (CIEN Quote) is at the top of his speculation list.

The company recently reported disappointing earnings and fell a staggering 20% in a single day.

Cramer said the point to note is that after such a huge loss, not a single analyst downgraded the name. "The estimates have already been cut," he said, with all of the bad news already priced into the stock.

Second was telco equipment maker Tellabs (TLAB Quote).

Cramer said Tellabs is currently trading just about its cash value and has no debt on its balance sheet. The company supplies telcos and cable companies with equipment to increase bandwidth and Cramer said "we need more bandwidth."

He said there is almost no downside in the stock, but the potential for sizable upside.

Third was mobile chipmaker and former Cramer favorite Skyworks Solutions .

He said Skyworks is a play on the increasing popularity of smartphones, and with earnings estimates slashed to just 16 cents a share for 2009, all of the bad news is already baked into these shares as well.

Mad Mail

In this segment, Cramer told a viewer that wildcat driller Rex Energy (REXX Quote) no longer works in this market. "When that group is hot, they're hot, but now they're cold as ice," he said.

Lightning Round

Cramer was bullish on Advanced Micro Devices , Express Scripts , Wachovia (WB Quote), Thermo Electron (TMO Quote) and BP (BP Quote).