Cramer's 'Mad Money' Recap: Misleading Bearish Sentiments (Final)

Hold on to Potash

In his "Eureka Moment" segment, Cramer told shareholders of fertilizer giant Potash (POT) to "hold out for more," after the company received a takeover bid from BHP Billiton (BHP).

Cramer said normally, a takeover bid equals sell, as the upside potential for a company is stripped away by the offer. But in the case of Potash, he said, there's clearly more upside to be had.

Cramer said that the worldwide shortage of crops is very evident now that Russia has banned grain exports from the country. With lean fertilizer inventories across the board, Cramer said it's nearly impossible for competitors to replicate what Potash has to offer. Add a scarcity of fertilizer companies for suitors to buy, and Cramer said that's a formula for a higher bid to come in.

Cramer last recommended Potash on Aug. 5 at $114 a share, but even with a 25% gain in the stock he said investors need to hold on for the next few weeks.

Lightning Round

Cramer was bullish on Electronic Arts (ERTS), Cirrus Logic (CRUS) and Cisco Systems (CSCO).

He was bearish on Hewlett-Packard (HPQ) and Tenet Healthcare (THC).

-- Written by Scott Rutt in Washington D.C.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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

For more of Cramer's insights during the Lightning Round, click here.

>To order reprints of this article, click here: Reprints