Cramer's 'Mad Money': Stay in the Game

Speculation Friday

For "Speculation Friday," Cramer recommended Allos Therapeutics (ALTH), a small $5.64 a share biotech.

Cramer said Allos has everything he wants in a speculative stock: It's cheap, it's not a bank stock, it's not an insurance stock, and it's got a hot new drug headed to FDA approval.

The company is developing what's known as an orphan drug that treats rare conditions that affect only a few thousand patients, but also one that has absolutely no competition.

Cramer said Allos' blood cancer drug is seeing positive phase two testing results and could be approved by the FDA as early as the end of this year. The company also has $90 million in cash, enough to carry it through approval.

Cramer said he's also not worried about the Obama effect on Allos, since orphan drugs with no competition rarely see political pricing pressures.

Cramer warned that Allos is a speculative name with no sales to speak of, and while he sees a bargin at $6 or less, he would not pay up for the stock.

A China Play

After President Obama wrecked the healthcare stocks and proposed big tax increases on the oil stocks this week, Cramer told viewers they need to Obama-proof their portfolios. He recommended once again looking overseas, to recession resistant companies outside of the president's taxable teach.

Cramer said Australian mining giant BHP Billiton (BHP) fits the mold, with it's juicy 4.5% dividend yield.

Cramer said BHP is simply a play on the recovery in China. With the price of iron up 25% since October and 20% of BHP's sales coming from China, Cramer said the connection should be obvious.

Shares of BHP have fallen from a high of $95 a share all the way down to just $36 today. Cramer said the company has a strong balance sheet, with more than enough free cash flow to cover its dividend payments. The company is also taking market share, making it the perfect way to play the Chinese recovery.

Mad Mail

Cramer told a viewer that he's not worried about the oil reserves of Permian Basin Royalty Trust (PBT), because the company is always finding more oil. But he advised not paying up for the stock, given the stock's 20% pop on yesterday's recommendation.

When a second viewer expressed concerns over BP's (BP), Cramer said he also is concerned and is keeping a close eye on the situation, but feels the dividend ultimately will be OK.

Another viewer asked Cramer whether the SDPR Gold Shares (GLD) is big enough to manipulate the price of gold.

Cramer said frankly, yes. He said that while 60% of gold is used for jewelry, much of the remaining 40% goes to stock the Gold Shares. But, he said, with gold coming down in recent weeks, he thinks that risk is now minimal.

Lightning Round

Cramer was bullish on Terra Nitrogen (TNH), ConAgra Foods (CAG), Air Products and Chemicals (APD), Walt Disney (DIS), Papa Johns Internationa (PZZA) and Darden Restaurants (DRI).

He was bearish on Intrepid Potash (IPI), Johnson Controls (JCI), Clearwire (CLWR) and Logitech International (LOGI).

Check out the latest edition of "Cramer's Take on Top-Searched Stocks" on Stockpickr.

Want more Cramer? Check out Jim's rules and commandments for investing by clicking here.

Read more of Cramer's Mad Money Lightning Round insights.

For "Mad Money" performance statistics and other links, check out Mad Money stats

At the time of publication, Cramer was long Wal-Mart.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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