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"I have to recommend

Halliburton

(HAL) - Get Report

wholeheartedly," Jim Cramer told "Mad Money" viewers Wednesday, and he believes that the stock will go higher once it stops "confusing" Wall Street.

He said that the company, which he owns for his

ActionAlerts PLUS charitable trust portfolio, is really two companies. The first is the energy services group, and the second is the engineering and construction business,

Kellogg Brown & Root

.

That's the portion of the company that has had all the negative press in Iraq, he said.

"To put it simply, Wall Street loves pure plays, especially in the oil patch," he said. "You get more money for

pure plays because the guys on Wall Street know exactly what they're getting and exactly what it's worth."

So when Halliburton said in January that it would spin off KBR, Cramer said that he predicted that the stock would go higher. The company filed for the IPO last Friday, he said.

The spinoff makes more value for both units, Cramer said. If Halliburton, minus KBR, were a standalone company, he said that investors would see that it's undervalued compared with the rest of the oil industry.

The industry multiple is 10, he said. Given that multiple, Cramer said he believes that Halliburton could go to $100.

He also believes that KBR is undervalued and that soon much of the bad press it has received from its work in Iraq will iron itself out.

Signs From the Times

In this weekend's

New York Times

, there was an article about the baby boomers that could make you mad money, Cramer said.

Image placeholder title

The article said that the demographic is exercising past the age of 50, despite wear and tear on the body, and that the trend shows few signs of abating.

There are stocks to be bought on this trend, he said, including the leading company in the sports medicine business,

DJ Orthopedics

(DJO)

.

He said that the company has every kind of knee, ankle, elbow and lower back brace you can think of. Moreover, it just completed an acquisition of "the most important

knee brace in the world."

The company just bought Aircast Incorporated, "the Moby Dick of knee accessories." And Cramer said that the stock jumped to nearly $40 after the deal from about $29 before the deal.

He said he would wait for a pullback before buying. He added that the company deserves a 23 multiple, which is where most small-cap orthopedic companies trade. If it earns $2 a share, Cramer said that could take the stock to $46.

Am I Diversified?

"What qualifies as wise investing? We strive for the free-lunch game that is diversification," Cramer said.

That's why he plays "Am I Diversified?" when callers ask him to judge their portfolios.

The first caller had

Exxon Mobil

(XOM) - Get Report

,

Procter & Gamble

(PG) - Get Report

,

Lowe's

(LOW) - Get Report

,

Pfizer

(PFE) - Get Report

and

Wisconsin Energy

(WEC) - Get Report

.

Cramer blessed the portfolio as diversified because it includes an oil company, a consumer-goods play, a retailer, a pharmaceutical and a utility company.

The next caller owned

Lockheed Martin

(LMT) - Get Report

,

Playboy

(PLA)

,

Textron

(TXT) - Get Report

,

Advanced Micro Devices

(AMD) - Get Report

and

Constellation Brands

(STZ) - Get Report

.

Cramer hesitated a first, wondering aloud whether Textron was levered to defense to such an extent to make it overlap with Lockheed Martin.

However, he blessed it in the end, even though Cramer added that he's not crazy about Constellation.

Mitch Caplan, chief executive of

E*Trade Financial

(ET) - Get Report

, joined Cramer by telephone. He told Cramer that E*Trade's latest strong quarter reflected great results throughout the company's businesses.

Cash and credit units did well and volume increased, Caplan said, all contributing to the company's 36-cents-a-share earnings.

The company's international trading surged 43%, and Cramer asked if this means that investors are "getting wind that there are no borders anymore."

Caplan said that it seems that way, noting that E*Trade has seen more than $1 billion in cash over the last few years from international customers. He added that this has occurred in the absence of marketing.

He added that industry consolidation has really helped.

Cramer wanted to know whether booming business for E*Trade shows that there is a move away from money managers and mutual funds. Caplan said that he is seeing more self-directed investing.

To view Cramer's interview with Caplan, click here.

Lightning Round

Bullish

Cramer was bullish on

I-Flow

(IFLO)

Express Scripts

(ESRX)

,

Texas Instruments

(TXN) - Get Report

,

Goldcorp

(GG)

,

Google

(GOOG) - Get Report

,

JDSU

(JDSU)

,

Conexant

(CNXT) - Get Report

,

Finisar

(FNSR) - Get Report

,

SiRF Technology Holdings

(SIRF)

,

Apple

(AAPL) - Get Report

,

PetroQuest Energy

(PQ)

,

Hewitt Associates

(HEW)

,

Grey Wolf

(GW)

,

Southwestern Energy

(SWN) - Get Report

and

Newell Rubbermaid

(NWL) - Get Report

.

Bearish

Cramer was bearish on

Pacific Ethanol

(PEIX) - Get Report

,

Kinross Gold

(KGC) - Get Report

,

Fronteer Development

(FRG)

,

Bookham

(BKHM)

and

Nortel

(NT)

.

For more of Cramer's insights during the most recent 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, Procter & Gamble and Newell Rubbermaid.

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."

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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.