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Cramer's 'Mad Money' Recap: Stick With What Works

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NEW YORK ( TheStreet) -- Stick with the themes that are working, Jim Cramer said Tuesday on "Mad Money." Cramer said the "sell in May" crowd has been totally wrong, and his latest top-five, big-market themes prove it.

Cramer said housing remains the biggest sweet spot for the markets and he likes the upcoming IPO on William Lyons Homes as well as Radian Group (RDN) in the mortgage insurance space.

Oil was Cramer's second market sweet spot, with EOG Resources (EOG) still his favorite pick in that group. He also blessed Ensco (ESV), a stock he owns for his charitable trust, Action Alerts PLUS .

Next up were the airlines, with the lack of competition and stable fuel prices helping to aid that sector. Cramer said US Airways (LCC) remains his top pick in this red-hot sector.

Fourth on the hot list is biotech, with Cramer's favorite "four horsemen" of Celgene (CELG), Gilead Sciences (GILD), Biogen Idec (BIIB) and Regeneron (REGN), leading that sector to new heights. He also once again mentioned Quintiles Transnational (Q) as a new favorite in the group.

Finally, there's cloud computing and mobile devices. Cramer said this sector is led by Netflix (NFLX), a company that, despite 20% of its shares being sold short, continues to rocket to new highs.

Cramer said investors who pick from any of these groups will be handsomely rewarded.

Executive Decision: Nick Debenedictis

In the "Executive Decision" segment, Cramer sat down with Nick Debenedictis, chairman, president and CEO of Aqua America (WTR - Get Report), the water company that just increased its dividend by 9% to a 2.3% yield after delivering another strong quarter.

Debenedictis said that when it comes to value, Aqua America still provides some of the least expensive water available. He said his company is expanding into providing water for the energy industry but there is still lots of potential in its core business of privatizing water delivery for local municipalities. Debenedictis noted that while some states have proven to be more progressive in this area, for many municipalities keeping up with Environmental Protection Agency regulations is proving to be a losing battle.

Aqua America is also leading the charge in being green, noted Debenedictis, who said three of the company's plants have converted to solar power. He said that for long-term investments like water, solar is cheaper than any other alternative. Aqua America is also working on converting all of its vehicles to use compressed natural gas, another cost-saving and eco-friendly move.

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