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"I've got the stock that's the antidote to the toxin of subprime working-class lending," Jim Cramer told viewers of his "Mad Money" TV show Thursday.

"The stock that says you will make money as the price of your house goes down ... is

Annaly Capital Management

(NLY) - Get Annaly Capital Management, Inc. Report

," he said.

Michael Farrell, Annaly's chief executive, is the only CEO who saw the subprime-mortgage crisis coming and positioned his company to flourish. Cramer said he hasn't always been right about Annaly. "I doubted the company before, and I shouldn't have," he said.

When he first met Farrell, Cramer said, Farrell had a really good track record, so Cramer recommended the stock on his former TV show, "Kudlow and Cramer." However, the stock sunk and the

dividend got cut. While Cramer was licking his wounds, Annaly changed its approach and decided to cut back on its residential mortgage exposure, he said.

"When you buy a mortgage or invest in a pool of mortgages, you're basically investing in

risk," Cramer explained. There are two types of mortgage risk: the less-speculative interest-rate risk and the more-"scary" credit risk.

Companies that play in credit risk have gotten "killed" during this crisis, Cramer went on to say.

"The media constantly gets these two types

of mortgage risks confused and thinks everyone is in the credit-risk game," he said.

Because the press doesn't always get it, Annaly gets lumped with all the other mortgage lenders, which is why Cramer believes right now is a "great opportunity" to get into Annaly.

Paper Money

Cramer's pick on the paper trade is

TheStreet Recommends

Sappi

(SPP)

. It is the "big winner" from the new antisubsidy and antidumping tariffs the U.S. has imposed on coated free paper from China, Cramer told viewers.

Most companies that make coated free paper, the glossy paper found in magazines and yearbooks, are private, he said. Further, Cramer said he believes "the tariffs could make a real short-term difference for SPP's

earnings."

However, he stressed that Sappi is a trade idea, not an investment idea. Over the long term, Cramer believes, this South African paper company won't be able to compete against its Chinese competitors.

Sell Block

Cramer dedicated his "Sell Block" segment to

Vonage

(VG) - Get Vonage Holdings Corp. Report

.

Michael Snyder recently

stepped down as Vonage's CEO, and Jeffrey Citron has taken his place. However, because Citron was "banned from the securities industry in 2003," Cramer believes he "should not be allowed to be the CEO of a public company." This new appointment is just one more reason to sell Vonage, Cramer said.

Cramer also put

Johnson & Johnson

(JNJ) - Get Johnson & Johnson Report

in the sell block, saying he likes the company but that he got it wrong.

J&J used to be best of breed, but the truth is there are very few blue-chips left, and this drugmaker is not one of them, he said. Not only are its drugs starting to come off patent, but J&J's Invega drug has been a "huge disappointment."

In addition, Cramer advised viewers to sell

Friedman Billings Ramsey

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, which he believes is "trying to create money from nothing."

"Its problem is that it's the opposite of Annaly" and has exposure to some bad subprime lending, he said. Moreover, while people might be inclined to buy the IPO of its

FBR Capital Markets

unit, Cramer warned investors against it. On some metrics, Cramer said, the subsidiary is also worth nothing.

Salesforce Call

Marc Benioff,

Salesforce.com's

(CRM) - Get salesforce.com, inc. Report

chairman and CEO, joined Cramer on the show by phone and said his company is "trying to recreate the software industry by delivering a set of Internet services that replace traditional enterprise software."

The focus on this end of software, Benioff said, is one of the reasons the company has become "the fastest-growing software company" of its size in the world. Salesforce has recently signed contracts with

Merrill Lynch

( MER),

Dell

(DELL) - Get Dell Technologies Inc Class C Report

and

Cisco

(CSCO) - Get Cisco Systems, Inc. Report

, each of which chose Saleforce's new model over

Oracle's

(ORCL) - Get Oracle Corporation Report

and

Microsoft's

(MSFT) - Get Microsoft Corporation Report

, he said.

Cramer commented that a lot of companies that have gone up against Microsoft and Oracle have faltered, and he asked Benioff why Salesforce.com would be different. "The companies that win in our industry are the ones that change the game," Benioff replied.

"They have to change the game in two ways -- the technology model and the business model -- and that's what we're about," he said. "That's why we've won so many of these very important customers around the world."

Cramer said he's not going either way on Salesforce and urged viewers to reach their own decisions on the stock.

To view Cramer's interview with Marc Benioff, please click here.

During the show's "Sudden Death" round, Cramer was bullish on

Las Vegas Sands

(LVS) - Get Las Vegas Sands Corp. Report

and

Mueller Water

(MWA) - Get Mueller Water Products, Inc. Class A Report

. He was bearish on

BB&T

(BBT) - Get BB&T Corporation Report

and

Valero Energy

(VLO) - Get Valero Energy Corporation Report

.

Lightning Round

Image placeholder title

Cramer was bullish on

Mattel

(MAT) - Get Mattel, Inc. Report

,

Hasbro

(HAS) - Get Hasbro, Inc. Report

,

CVS

(CVS) - Get CVS Health Corporation Report

,

Express Scripts

(ESRX)

,

Rochester Medical

( ROCM),

Zimmer

(ZMH)

,

Allergan

(AGN) - Get Allergan plc Report

,

Color Kinetics

( CLRK),

Bank of Nova Scotia

(BNS) - Get Bank of Nova Scotia Report

,

Medco Health

(MHS)

,

Yamana Gold

(AUY) - Get Yamana Gold Inc. Report

,

International Securities Exchange

( ISE),

IntercontinentalExchange

(ICE) - Get Intercontinental Exchange, Inc. Report

and

Intuitive Surgical

(ISRG) - Get Intuitive Surgical, Inc. Report

.

Cramer was bearish on

US Gold

( UXG),

J2 Global Communications

(JCOM) - Get J2 Global, Inc. Report

,

Mannatech

(MTEX) - Get Mannatech, Incorporated Report

and

Smith & Wesson

(SWHC)

.

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 Express Scripts.

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.