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Cramer's 'Mad Money' Recap: Italy Outduels Buffett (Final)

Under the Radar

In this segment, Cramer highlighted a speculative semiconductor maker that he said is ready to rebound after declaring bankruptcy in 2009 and re-emerging earlier this year. He told investors to consider MagnaChip (MX - Get Report), a Korean semiconductor maker whose business includes a chip foundry, which accounts for 41% of sales; a display products business, which accounts for 46% of sales; and a power solutions business that offers power management solutions for smartphones and tablets.

So what's the catalyst for MagnaChip? Cramer said it's strong sales of the Samsung Galaxy series of tablets, something that was noted on the conference calls of both Skyworks Solutions (SWKS) and Broadcom (BRCM). He said that Galaxy sales are too small to move the needle at Samsung itself, or even at the larger chipmakers, but for MagnaChip, it could be substantial.

After emerging from bankruptcy earlier this year at $14 a share, this stock has been hammered down to just $7, said Cramer, making it incredibly cheap at just five times earnings. MagnaChip also only has three analysts covering the stock, leaving lots of room for upgrades.

Cramer warned that MagnaChip is a very small stock and all of his usual precautions apply. Do not buy in after hours, use limit orders and be patient, he said. There is no immediate need to buy this stock, said Cramer, "do not pay up for up."

Lightning Round

Cramer was bullish on Juniper Networks (JNPR - Get Report), Nordic American Tanker (NAT - Get Report), FedEx (FDX - Get Report), United Parcel Service (UPS - Get Report), Union Pacific (UNP - Get Report) and Eaton (ETN - Get Report).

Cramer was bearish on Barnes & Noble (BKS) and Overseas Shipholding Group (OSG).

Closing Comments

In his "No Huddle Offense" segment, Cramer tipped his hat to both Warren Buffet and Mark Cuban, two celebrity investors who spoke out against credit default swaps and high-frequency trading on CNBC earlier today.

Cramer said that too often, the creators of these exotic trading instruments rebut that they're simply smarter than their critics and that these instruments pose no threat to individual traders or the markets. But Cramer said that Buffett and Cuban are not simple critics, they're sophisticated traders and investors, and if they say these instruments are bad, people should listen.

Buffett called credit default swaps "anti-social" and said they simply should not be allowed, while Cuban said that high-frequency traders act like "hackers" attacking the markets.

Cramer said he's been on record for ages saying that these instruments are wrecking the playing field for the little investor and he's glad to see Cuban and Buffett agree.

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

To contact the writer of this article, click here: Scott Rutt.

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For more of Cramer's insights during the Lightning Round, click here .
At the time of publication, Cramer was long IBM, Coca-Cola. long

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.
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