"When you look at stocks, you need to unlearn anything you've ever been taught about money, otherwise you will get crushed," Jim Cramer told viewers of his "Mad Money" TV show Friday.

Cheap stocks, those that cost less than $10, $5 or even $3, are not necessarily inexpensive stocks, Cramer said, adding that he can't emphasize this point enough.

People need to understand that even $2 stocks might be priced at a premium and actually be more expensive than a $40 stock, Cramer said. There may be nothing riskier than owning a cheap stock, because it could bottom and go to $0.

For example,

Charter Communications

(CHTR) - Get Report

is a $2.58 stock, and

Comcast

(CMCSA) - Get Report

is a $40 stock, he said.

Charter here is "more expensive and much worse," and it's clear that price does not determine worth, Cramer said. To find the actual value of stocks, he said people should divide a stock's share price by its earnings per share.

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In addition, comparing the two based on their enterprise value, Comcast is an $87 billion company, whereas Charter is a $1 billion company with $18 billion of debt, Cramer said.

"Market players continue to think that the low-dollar stock is the less-expensive stock," he said. However, "now Charter has too much debt to support the equity."

There isn't the "remotest chance" that Comcast will declare bankruptcy, but Charter should do this immediately, Cramer said.

"I'm not touching Charter with a 10-foot pole," he said, brandishing one. "If you want a cheap cable stock, go to Comcast."

Another stock that Cramer said he doesn't want to touch with a 10-foot pole is

Gateway

(GTW)

.

Lots of people go hunting for cheap stocks thinking they can make a lot of money. But little do they realize that low-dollar stocks are some of the most expensive stocks out there, he said.

Gateway, which trades at $1.64, "is the biggest loser," Cramer said.

On the other hand

Hewlett-Packard

(HPQ) - Get Report

, which he owns for his charitable trust,

Action Alerts PLUS, trades at $38.22.

Looking at the two companies' multiples, Gateway sells at a "massive premium," whereas Hewlett-Packard does not, Cramer said.

In addition, Gateway has been a "serial underperformer" and is down 45% over the last year. Hewlett-Packard is up 35% over the past year, he said. "Gateway has 8.8% long-term growth, whereas Hewlett-Packard has 15% long-term growth."

Gateway may look cheap, but its price per share is "trying to fool market players," Cramer said. And because two-thirds of the company is related to PC sales, Gateway should be "crushed," whereas Hewlett-Packard is more diversified.

Moreover, Gateway didn't even issue a cash-flow statement, which means it might not have any free cash flow, Cramer said.

"Gateway trades at 27 times next year's earnings, while Hewlett-Packard sells at 16 times next year's earnings," Cramer said. "Gateway is far more expensive."

The Week Ahead

Cramer laid out the game-plan for next week and told viewers about some quick trades.

Buy

Wynn Resorts

(WYNN) - Get Report

on Monday and sell it Tuesday after it reports, he advised.

Cramer said he recommends this trade because some unofficial numbers came out from Macau, and if they are true, they could translate into big gains for Wynn.

He also called

Cisco

(CSCO) - Get Report

"the biggest gift next week" as he believes it is going to report a "blowout" quarter.

As the stock is at a low price right now, it makes for a good entry point, Cramer said.

"It just came down so buy it before it reports on Wednesday," he said. "But, Cisco could also be a terrific investment."

Four Seasons

(FS)

could also report a good number next week because people keep shopping high-end and traveling high-end, Cramer said. Plus, there has been no terrorism, which increases travel.

"Buy it before Thursday and sell it into strength," he said.

Walt Disney

(DIS) - Get Report

"is another one that should pop when it reports" next week, Cramer said. This company has benefited from its theme parks doing better, a great TV schedule and low oil prices.

"The single best trade other than Cisco is

AIG

(AIG) - Get Report

," which he owns for his charitable trust,

Action Alerts PLUS, he said.

As the biggest insurer, this is a trade off the fact that there have been no hurricanes. AIG also benefits when rates go down.

"This one could ramp," Cramer said.

Hansen Natural

(HANS)

reports Thursday, but people should take out the 10-foot pole and stay away from this one, too, he said.

On Monday, market players should consider getting into big pharma as people "freak out" that the Democrats might take over Congress. Cramer said that he's been buying

Johnson & Johnson

(JNJ) - Get Report

for his charitable trust,

Action Alerts PLUS.

Also buy

Evergreen Solar

(ESLR)

as an alternative-energy play Monday and sell it Wednesday, "no matter what," Cramer said.

Mad Mail

In his "Mad Mail" segment, Cramer told a viewer that

GameStop

(GME) - Get Report

and

Electronic Arts

(ERTS)

are on their way up.

Responding to another email, he said that a lot of high-multiple stocks have come in here such as

Panera Bread

(PNRA)

and

Whole Foods

(WFMI)

.

Cramer told the viewer he would use the pullback in Panera to buy some of the stock.

"I don't see

DivX

(DIVX)

being bought by

Google

(GOOG) - Get Report

," he told another mailer.

DivX is up big, and a big play off of the bandwidth shortage is

Level 3 Communications

(LVLT)

.

Federated Department Stores

(FD)

is much cheaper than

Dillard's

(DDS) - Get Report

, he said in response to his last email.

"I would sell Dillard's and buy Federated."

Lightning Round

Cramer was bullish on

Yamana Gold

(AUY) - Get Report

,

Mattel

(MAT) - Get Report

,

Hasbro

(HAS) - Get Report

,

Philadelphia Consolidated Holding

(PHLY)

,

Schering-Plough

(SGP)

,

Johnson & Johnson

(JNJ) - Get Report

,

AES

(AES) - Get Report

and

LSI Logic

(LSI) - Get Report

.

Cramer was bearish on

Newmont Mining

(NEM) - Get Report

,

Anthracite Capital

(AHR)

,

Pfizer

(PFE) - Get Report

,

Oshkosh Truck

(OSK) - Get Report

,

Qualcomm

(QCOM) - Get Report

,

Applied Materials

(AMAT) - Get Report

and

Chico's

(CHS) - 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 Hewlett-Packard, Johnson & Johnson, AIG and Schering-Plough.

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.