Click here for an archive of Cramer's "Mad Money" recaps.

"It's going to be a very

Activision

(ATVI) - Get Report

Christmas," Jim Cramer told viewers of his "Mad Money" TV show Tuesday.

This company, which is the second-largest video-game maker after

Electronic Arts

(ERTS)

, "has an edge," he said.

If market players believe video games are "too juvenile to invest in," Cramer suggested thinking of them as "profitable, long interactive movies."

"Anyone under 30 understands the demand for video games," he said. "This is an all-video-game Christmas."

PlayStation 3 is set for release next month in the U.S. and Canada, but Cramer doesn't believe people should buy

Sony

(SNE) - Get Report

, which makes the console. Also,

Nintendo's

new platform, Wii, will be released soon, he said.

"When you buy a new console, you need new games," Cramer said.

People should invest in Activision because "it has the best titles," and it is "underappreciated," which means it's too cheap, he said.

Two popular video games, "Call of Duty 3" and "Guitar Hero II," get released Wednesday, and Cramer predicts they will be "monster hits." Although it's generally more risky to invest in game publishers than distributors, he believes there will also be more of a reward by owning Activision.

However, Activation has had "lumpy quarters," which have led to "shortfalls" for the company in the past, Cramer said. Therefore, he advised viewers to sell the stock by Christmas, as he considers it a trade.

Image placeholder title

Cramer reminded market players to use limit orders when buying Activision, which he called "a triple holiday season buy."

Blessed Are the Gadget Makers

The one sector that is "totally insensitive" to what goes on in Washington is technology, Cramer told his viewers.

Tech stocks trade with their own product cycles, not with the business cycle, he said. Right now people should want to be in gadget makers.

Even though

Research In Motion

(RIMM)

has had a run, Cramer believes it is still the better gadget maker to invest in until year-end, rather than

Garmin

(GRMN) - Get Report

.

RIMM's BlackBerry is "a more necessary product" than the global-positioning systems Garmin manufacturers and sells, he said.

In addition, Garmin's market is "mostly penetrated," whereas RIMM is expanding its product base to a broader market than just business people, with its Blackberry Pearl smartphone.

"RIMM has the capacity to grow, which Garmin lacks," Cramer said.

Moreover, when dividing the companies' multiples by their growth rates, it turns out RIMM is barley more expensive than Garmin, he said.

Although people are worried about BlackBerry's competitors, Cramer said companies have tried to come out with competing products before but have failed.

"RIMM may be up huge, but it is still a winner, and people should be wary of Garmin," he said. "RIMM is the gadget stock to own through the end of the year."

Cramer reminded those who have already made a profit in RIMM to take a little off the table and play with the house's money, as there are profits to be made there.

Cicso Avoids Telco Smoke

Although all signs indicate that the telco market is really strong right now, Cramer warned market players to resist the temptation to buy little telco-equipment suppliers.

The only play he blesses in this space is

Cisco

(CSCO) - Get Report

.

After listening to the

JDSU

(JDUSD)

conference call and hearing about the "possible turn" in

Conexant

(CNXT) - Get Report

, Cramer said he began to think that these stocks might come back, but then

Lucent

(LU)

reported a good quarter.

"How strong must the telco market be for Lucent to have a good quarter," he said.

Cramer knows

Comcast

(CMCSA) - Get Report

,

Verizon

(VZ) - Get Report

and

AT&T

(T) - Get Report

are all spending on their networks again. But he still believes people should not buy the JDSUs and Conexants because just a year ago these stocks rallied and seemed like they were in the "sweet spot," but then four months later, "every last one of them was up in smoke."

While these stocks looked like they could never go down, they did and they hurt people who didn't sell fast enough, Cramer said.

Therefore, even though Cisco has already had a run, he said he is not backing away from it, as it is "the only game in town."

In fact, Cramer said he hopes Cisco comes down so he can "jump on the table and recommend it to people who are not in it yet."

Aqua America's Tides

Cramer welcomed Nicholas DeBenedictis,

Aqua America's

(WTR) - Get Report

chief executive to the show and asked him why the stock is underperforming and what he is going to do to turn it around.

"This is a stock that has been around for 100 years, and it hasn't underperformed over the last 20 years," DeBenedictis responded. "I can't tell you what it's going to do quarter to quarter, but long-term holders have done very well with the stock."

"We are going to keep trying to grow earnings and revenues through accumulations of real assets," he continued. "We're up to $3 billion in assets, and it took us 100 years to get there."

A very small part of this, DeBenedictis said, is from buying other companies, but when Aqua America does buy other water companies, it invests in them and is allowed to earn on them.

"We're going to continue buying companies, putting investments in new water quality and growing organically in areas we're in," DeBenedictis said. "The fundamentals are strong."

To view Cramer's interview with Nicholas DeBenedictis, please click here.

In his "Sudden Death" round, Cramer was bullish on

Atheros Communications

(ATHR)

and

Advanced Micro Devices

(AMD) - Get Report

.

He was bearish on

Red Hat

(RHAT)

and

Internet Capital Group

(ICGE)

.

Lightning Round

Cramer was bullish on

UAL

(UAUA)

,

Level 3 Communications

(LVLT)

,

Halliburton

(HAL) - Get Report

,

Genentech

(DNA)

,

Amgen

(AMGN) - Get Report

,

Celgene

(CELG) - Get Report

,

Quest Software

(QSFT)

,

Transocean

(RIG) - Get Report

,

Bema Gold

(BGO)

,

Yamana Gold

(AUY) - Get Report

,

TXU

(TXU)

and

Lowe's

(LOW) - Get Report

.

Cramer was bearish on

Emmis Communications

(EMMS) - Get Report

,

US Airways

(LCC)

,

Knology

(KNOL)

,

Allis-Chalmers Energy

(ALY)

,

Pacific Ethanol

(PEIX) - Get Report

,

Noble

(NE) - Get Report

and

Public Service Enterprise Group

(PEG) - Get Report

.

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

click here.

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

clicking here

.

At the time of publication, Cramer was long Halliburton.

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.