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Jim Cramer's 'Mad Money' Recap: A Delicious Rally

Given the expected demand for the Twitter IPO, Culter said the NYSE did a test two weeks ago to simulate a high volume day, along with the opening of Twitter and everything operated "seamlessly."

It's a LOCK

Don't believe the hype, Cramer warned investors. While many people will be lining up for the upcoming Twitter IPO, many will also get burned in the aftermarket once the stock opens for business. That's why sometimes the smarter move is to look for IPOs that bomb on their first day and determine whether you have a broken IPO or a broken company.

That's why Cramer circled back to LifeLock (LOCK), the protectors against identity theft that came public 13 months ago. LifeLock was a classic case of a broken IPO, Cramer explained, as shares priced below the range they were expecting only to drop 7% on their first day of trading. In the weeks that followed, LifeLock shares slipped 23%.

But after finally regaining its footing from its ill-priced IPO, LifeLock has rallied 129% from its lows and just beat earnings expectations by 1 cent a share on sharply higher-than-expected revenue. While the IPO was a breakdown of market mechanics, Cramer explained, everything LifeLock has done since has been remarkable.

Cramer said the fundamentals at LifeLock remain terrific, with a $7 billion addressable market for the company's $10 to $25 monthly service. Shares trade at 32 times earnings, well within the range money managers will pay for a company that's growing at 25% a year.

Lightning Round

In the Lightning Round, Cramer was bullish on Wolverine World Wide (WWW), BP (BP), Pharmacyclics (PCYC) and Navios Maritime Partners (NMM).

Cramer was bearish on JetBlue Airways (JBLU) and W. P. Carey (WPC).

Executive Decision: Michael Bonney

In the "Executive Decision" segment, Cramer spoke with Michael Bonney, CEO of Cubist Pharmaceuticals (CBST), the makers of antibiotics to treat drug-resistant bacteria, which recently posted disappointing results including a nine-cents-a-share earnings miss on weaker-than-expected revenue. Cramer said the earnings are not the story at Cubist because the company's $1.2 billion in acquisitions are what is helping shares post a 33% gain since he last spoke to Bonney.

Bonney was also upbeat on Cubist's acquisitions, saying that while they still expect growth from the current line of antibiotics, the acquisitions have allowed the company to diversify its revenue base, turning the story once again back to the pipeline of coming drugs.

Cubist expects Phase III trial data from one of its drugs as early as next month, said Bonney, and Cubist should have drugs in front of the Food and Drug Administration in June of next year and again in late 2014 and early 2015.

When asked about these new antibiotics, Bonney explained the real advancements are coming from antibiotics that have both oral and IV formulations that boast shorter courses of therapy and fewer drug interactions than the current available treatments. He said these new classes of drugs aren't for everyone, but for a subset of patients they can make a real difference and save the health care system a lot of money.

Cramer said Cubist remains an interesting opportunity given its recent weakness.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on the disparity between the homebuilding stocks and the home-related stocks. He said these sectors seems to trade as if they're totally unrelated when, in fact, they are.

Cramer said there's a reason why homebuilders such as Pulte Homes (PHM) are down 2% for the year and Toll Brothers (TOL) is up only 1%, while home-related stock Masco (MAS) is up 26% for the year and Home Depot (HD) has risen 24%.

Homebuilders trade on consumer confidence and interest rates, Cramer explained, while the home-related stocks trade on the pent-up demand to spend on an existing home that's finally rising in value again. That's why he continues to like stocks like Home Depot, but thinks all of the home builders are still sell, sell, sells, as there's simply no reason to own them.

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

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

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

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

At the time of publication, Cramer's Action Alerts PLUS had a position in COST.

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."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com 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 TheStreet.com, 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 TheStreet.com. 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 TheStreet.com, 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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