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(CVX) - Get Chevron Corporation Report

is a "great stock" that is going to be put on sale next week, Jim Cramer told viewers of his "Mad Money" TV show Monday.

Cramer said he has "little doubt" that on Nov. 7, voters in California will pass Proposition 87, which "seeks to lessen dependence on foreign and domestic oil."

Chevron said this initiative might cost it $200 million, Cramer said. The measure would impose a tax on oil production. It seeks to raise $4 billion to develop and promote alternative energy technologies and promote the reduction of petroleum use.

After the "excellent" Chevron quarter and the company's "big find" in the Gulf of Mexico, it will be time to buy this stock on Wednesday or Thursday of next week when it gets hit by this initiative, Cramer said.

"Don't buy it today, tomorrow or later this week," Cramer warned.

If Proposition 87 passes, and it is expected to, analysts who cover Chevron are going to have to cut numbers, he explained. "When it gets put on sale, people should buy it."

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Aside from improvements in Big Oil's prospects, another reason to buy Chevron is that it had the "biggest earnings upside surprise," almost a 15% beat, Cramer said.

Plus, the company has "stronger marketing," he said. "It's not burning money any more; now it's spending it."

Also, it's still cheaper than

Exxon Mobil

(XOM) - Get Exxon Mobil Corporation Report

and has a "hefty" 3% dividend, Cramer said. In addition to the yield, Chevron has a "sweet buyback," which shows the company is confident and has "very little debt," he said.

"The last and best reason to buy it is that Chevron has great long-term prospects," Cramer said. "It has taken us out of the House of Pain after its great quarter, and it's time to buy it Wednesday or Thursday of next week."

Tobacco's Tough Road

Hospitals in California, Missouri and Arizona are lobbying to increase cigarette taxes, but people should still consider getting into the tobacco sector, Jim Cramer told viewers of his "Mad Money" TV show Monday.

If Proposition 86 is passed in California, it would raise the state cigarette tax from 87 cents to $3.47 a pack, Cramer said. However, tobacco companies are "taking a stand and fighting a back" and spending millions on political advertising.

Although Cramer said he doesn't smoke nor condone it, calling it "gross and sad," he believes people can make mad money from these stocks.


(MO) - Get Altria Group Inc Report

, which Cramer owns for his charitable trust,

Action Alerts PLUS, is the best of breed, he said.

It is better than

Reynolds American


and is better valued than


(UST) - Get ProShares Ultra 7-10 Year Treasury Report

, Cramer said.

However, Reynolds, which "has been on a roll" the last few years, is Cramer's second pick, and UST is an underdog/potential takeover target that he believes might be worth buying as well.

If market players prefer smaller plays, Cramer recommends


(VGR) - Get Vector Group Ltd. Report



(CG) - Get Carlyle Group L.P. Report


Even with tobacco excise taxes, cigarette companies should be bought, Cramer said.

Delta Dawn

There has been "furious trading" in

Delta Air Lines


stock recently, Cramer told viewers of his show.

As it is "incredibly risky" to buy bankrupt stocks, and because he doesn't like the risk/reward in these situations, Cramer said he doesn't recommend buying Delta. Based on previous airline bankruptcies, it is possible the stock will become valueless and bond holders will get all the equity, he said.

But this could be a "great sign" for the rest of the stocks in the sector, Cramer said, as it's a "fabulous" way to tell where the buyers are.

"When bankrupt stocks trade at a high volume, it could be good news for nonbankrupt peers," he said.

Therefore, Cramer advised "taking a sign from Delta" and buying other companies in the sector that have sound financials.

It's not too late to get into

Continental Airlines

(CAL) - Get Caleres, Inc. Report




, he said.

Cramer believes these stocks should go up, as there is a shortage of investable airline stocks, and "for once, there are actual barriers to entry."

The Rite Aid Way

Cramer asked his guest,

Rite Aid

(RAD) - Get Rite Aid Corporation Report

President and CEO Mary Sammons, if it's a narrow way of thinking to believe


TheStreet Recommends

(WMT) - Get Walmart Inc. Report

can wreck Rite Aid's pricing on drugs.

"If you look at Wal-Mart taking a small percentage of generics and using them as a loss leader, it doesn't impact a drugstore that has a whole different business proposition," Sammons responded. "In addition to the fact that 95% of drugs are paid by a third party, my customer would not pay much more than $4 at Rite Aid, and in many instances, they will pay less than $4."


"is a terrific acquisition ... couldn't find a better one for our company," Sammons added.

In addition to being able "take advantage of potential in the drugstore sector," the acquisition will enable Rite Aid to put its "branding proposition out there for a tremendous amount of more people," she said.

To view Cramer's interview with Mary Sammons, please click here.

Lightning Round

Cramer was bullish on





(ACV) - Get AllianzGI Diversified Income & Convertible Fund Report


MEMC Electronic Materials



Level 3 Communications



Marvell Technology

(MRVL) - Get Marvell Technology Group Ltd. Report


California Pizza Kitchen



Cramer was bearish on

Check Point

(CHKP) - Get Check Point Software Technologies Ltd. Report





Intuitive Surgical

(ISRG) - Get Intuitive Surgical, Inc. (ISRG) Report


Red Hat



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




J.C. Penney

(JCP) - Get J. C. Penney Company, Inc. Report



(KSS) - Get Kohl's Corporation (KSS) Report


He was bearish on

Wet Seal



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 Altria 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.