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TheStreet Open House

Cramer's 'Mad Money' Recap: A Market Too Good to Ignore

Tesla also let investors know the number of people who test drive the car and then actually buy one was far better than expected and the company was able to start offering financing for the first time, dramatically expanding its addressable market. If all that wasn't enough, foreign demand is ramping up.

But perhaps the biggest surprise on the conference call was the fact that capital spending is ramping down, not up, and Tesla is not planning to raise more funding.

All this great news was simply too much for Wall Street to take, said Cramer. With so many shares sold short, there's simply not been enough stock to go around to satisfy demand. When demand outstrips supply, prices go up. It's as simple as that, Cramer concluded.

Being Sure of Software Security Stocks

It's time to take a second look at software security stocks, Cramer told viewers. He said these stocks have been beaten down hard over the past 12 months thanks to the global economic malaise, but with cloud computing continuing to soar in popularity software security has never been more important.

Cramer said with Cisco's (CSCO) recent security acquisition and Hewlett-Packard (HPQ) CEO Meg Whitman also stating she's interested in this space, the time is now to get in ahead of any additional takeovers.

There are only three software security pure plays, noted Cramer, and a rising tide should lift all of these boats. He said Checkpoint Systems (CKP) trades at 17 times earnings, although the company's software seems to have lost some of its luster, making it his least favorite.

Then there's Fortinet (FTNT), which has been struggling to fight the economic weakness. Cramer said this company can deliver the goods and convince Wall Street that the turn is at hand.

But Cramer's favorite among the group is Palo Alto Networks (PANW), a stock he liked at its IPO for a 71% gain but then advised selling just before the stock pulled back to nearly its IPO price. Cramer said it's once again time to buy this stock -- it has got the best growth of the three; investors will not only value it the highest, but will also make it a prime takeover candidate.

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