Cramer's 'Mad Money' Recap: Jan. 8

Weathering the Rough Times

Cramer recommended Illinois Tool Works as another great American manufacturing company worth owning during a recession. He talked with chairman and CEO David Speer to find out how Illinois Tool is weathering the recession.

Cramer last recommend Illinois Tool Works on Dec. 4 at $31.77 a share and recommended the company purchase rival Manitowoc (MTW Quote) after a bidding war for Enodis left Manitowoc shares so low that Illinois Tool could purchase both companies for what it bid for just the one. Since then, ITW shares are up 16.5%, but there has been no takeover.

Speer called the current economic environment difficult, especially for the housing and auto sectors. He said he doesn't expect a turnaround in 2009, believing instead a recovery will likely come in 2010.

When asked how Obama's stimulus package would affect the company, Speer said there are some things in the plan that would have an impact. He said the company's commercial construction business, along with its bridge businesses and industrial packaging business, would likely pick up, however he doesn't see an impact until 2010.

When asked about a possible takeover of Manitowoc, Speer said the company has the discipline to know when a valuation has changed and when to walk away, which is what the company did with Enodis.

Sell Block

In this segment, Cramer revisited a basket of speculative tech stocks he recommended on Dec. 12, and said it's time to sell all of the names.

Cramer's basket included Ciena (CIEN Quote), Skyworks Solutions , Tellabs (TLAB Quote) and AMD (AMD Quote) --- a group which collectively is up an average of 22.5%.

Individually, Ciena shares rose 42%, Skyworks up 20%, Tellabs up 14% and AMD up just under 13%. Cramer said this "field bet" worked due to the fact many of the tech names had been beaten down hard by tax-loss selling and forced hedge-fund selling in November and December and couldn't possibly go any lower.