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Although we have seen some selling, market-players should look to buy stocks that have some good news and are a little expensive, Jim Cramer told viewers of his "Mad Money" TV show Tuesday.



, "the one-stop-shop arsenal when it comes to anything cosmetic-surgery-related," is a stock that fits both criteria and should be bought, Cramer said.

Even though $100 stocks seem to scare people off, Cramer stressed that there is nothing to fear here.

Allergan, which owns Botox and Juviderm, finally scored the final component needed to make people look good -- breast implants -- Cramer said. Implants, along with the desire for smooth and clear skin, created a triple play for Allergan, and the stock shot up to $120.

However, when Allergan reached $122, "people thought it was too expensive, and on Black Monday we had the major selloff," Cramer said. "It was as if everyone had forgotten about" the implants.

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Now Allergan, which "feeds off the physical insecurities of a nation," is "one great investment," he said, adding that there's no better time to buy it than now.

However, Cramer cautioned viewers to buy Allergan slowly because he's not sure if the recent selloff is over. If someone wanted to buy 25,000 shares of Allergan, Cramer suggested buying 5,000 at a time -- or even 1,000 -- every time the stock price goes down 25 cents.

"Every time it slides down a bit, put on a fifth of your position," Cramer said. "Buy it patiently on its way down."

Life and Debt

There are those who fall victim to capitalists and those who profit off of the victims, said Cramer. For example, credit card debt is growing, and people can either complain about the problem or they can invest off it.

Cramer believes that the best way to play this trend is with

Capital One Financial


, which he owns for his charitable trust,

Action Alerts PLUS, and which is the No. 4 issuer of MasterCard and Visa credit cards.

Although he also likes



, Cramer said that MasterCard capitalizes on credit card transactions, while Capital One capitalizes on credit card debt.

The credit card business is still doing well, he said. In addition, taking the interest rate angle into consideration, Cramer said there is a 70% chance of a rate cut by March, and if that happens, "every bank in America -- and especially Capital One -- should surge higher."

Capital One is "cheap," and as it is not a worst-of-breed bank, Cramer believes that it deserves to trade higher. Also, it is buying

North Fork


"so it can lend more money through credit cards at outrageous rates."

The deal with North Fork, which closes Friday, has been hanging over Capital One like "a dark cloud," Cramer said.

But Friday the stock should be "unleashed" and go higher, he said. Moreover, in the second half of next year, Capital One should be doing a huge buyback to offset the dilution created by the North Fork deal, Cramer added.

Finally, if the dollar keeps getting weaker, then there is a possibility that a "behemoth" bank could take interest in buying Capital One, he said.

Accoladefor an Analyst

Although there are some analysts who tend to be wrong and lose people money, there are others who are great at what they do, Cramer said. David Strasser, a retail analyst at Bank of America, is an example of an analyst who he believes market-players should heed.

Listen to him and buy



, Cramer said.

"Most analysts will like a stock all the way down and hate it all the way up," he said. "They tend to be pretty useless. They give up because they can't take the pain anymore."

This is what created the bottom in the homebuilders and the bottom in tech over the summer, Cramer said. When things look the most grim, analysts should tell you to buy, but instead they tell you to sell.

"They can't see the longer term," he said. "They are totally blind to it."

However, Cramer believes that Strasser does see the longer term and is giving the analyst's upgrade of Lowe's a well-merited shout-out.

Lowe's is levered to housing, but Strasser understands that this shouldn't matter because "stocks and their fundamentals are not joined at the hip," he said. Rather, "a stock runs six months ahead."

Also, a good piece of research should contain candor about the risk/reward, and as is apparent in Lowe's upgrade, the analyst should acknowledge that management has and should lead well, Cramer said.

Cramer said that a good analyst should look for P/E growth and present the macroeconomics in a nutshell.

In addition to having done good research, Cramer believes that Strasser has credibility because he was rightly bearish on Lowe's for two years.

"Another reason he's a great analyst is that he has the perfect pedigree and worked at a hedge fund before he became an analyst," Cramer said. "When you work at a hedge fund, you are trained to make people money."


Cramer welcomed



President and CEO Ken Kannappan to the show and asked him what his company's headset market is like in California in light of the new hands-free-while-driving legislation slated to go into effect in July 2008.

The enforced use of a hands-free cell phone device when driving has benefited the visibility of headsets, Kannappan said.

Referring to a Bear Stearns report, Cramer asked if it's true that there has been slow progress at the company's new China facility.

Cramer said he was "on the fence" regarding the stock and said he doesn't see a reason to pull the trigger right now.

To view Cramer's interview with Ken Kannappan, please click here.

Lightning Round

Cramer was bullish on

Sears Holdings



Time Warner



Marvell Technology


















Canadian Natural



Suncor Energy



Cramer was bearish on

OmniVision Technologies



Analog Devices



Texas Instruments



Internet Capital



CanWest Petroleum






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 popular book by

clicking here


At the time of publication, Cramer was long Sears Holdings, URS, Capital One Financial, AIG and Marvell Technology.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 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, 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, 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 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, 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.