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Jim Cramer broke one of his own rules on his "Mad Money" TV show Monday and sanctioned a trade in a U.S. airline.

While airline companies have been awful for as long as he can remember, Cramer said he believes

Continental Airlines

(CAL) - Get Caleres Inc. Report

has trading potential.

Continental is the fourth-largest U.S. airline and operates in roughly 132 domestic and 126 international destinations. Cramer believes the company has great management and strong performance.

The Open Skies initiative, an international air transport agreement, will remove almost all restrictions on air travel between the U.S. and Europe, he said. It will allow European airlines a role in managing U.S. carriers.

Open Skies could ease restrictions on foreign airlines to buy our domestic ones, Cramer said. It could make every single airline a takeover target. Although he realizes



United Airlines

could be the most likely airline that is taken over, if Cramer has to recommend one airline stock he said it would be Continental.

Things have changed with our airlines, he said. For one thing, fuel costs have peaked, so there should be only upside on that front. Also, there is an airline oligopoly now, Cramer said. They have broken out of their cycle of competition.

"That's why all the planes are full," he said. "On this show we like industries where there is no competition."

In addition, airlines have cut unions. Cramer believes unions are beneficial and those who are pro-workers might not like the fact that the company doesn't have employee benefits, but he said the stock is not a long-term play. Hold it only until the Open Skies initiative goes through and then sell, he advised viewers. You'll be able to get out with big money, he said.

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Cramer told a caller that he will only recommend buying one aerospace carrier,


(BA) - Get The Boeing Company Report


He told a separate caller, who inquired about making money from companies that reemerge from bankruptcy like United Airlines, to look into buying companies that perform aerospace maintenance, like


(AIR) - Get AAR Corp. Report


A Tale of Two IPOs



(MA) - Get Mastercard Incorporated Report



(VG) - Get Vonage Holdings Corp. Report

went public just two days apart from each other, the stories of these two initial public offerings are very different, Cramer said.

The only way to explain his dislike for Vonage, said Cramer, is to compare it to MasterCard.

Even though both companies are engaged in different businesses, they are similar in the fact that both companies had IPO's that were massively oversubscribed in the same time period. However, while MasterCard's IPO had a very successful opening, Vonage's IPO was a massive failure, he said.

The same day that Vonage went public, its stock went from $17 to $14 and the next day went down to $13. The stock has been decreasing since then.

The broadband telephone services company is facing patent infringement charges from


(VZ) - Get Verizon Communications Inc. Report

. In addition, the FDC is looking into 9/11 complaints that have surfaced about Vonage.

MasterCard, on the other hand had a great opening, with a price that started at $39 and closed at $46. After, the stock flat-lined, but his was due to bad market conditions, Cramer said.

"I would stay away from Vonage, but I think you should buy MasterCard," he said, giving the credit card company two thumbs up.

Although there are merchants suing MasterCard and trying to undue its IPO, Cramer believes this is not a serious threat and pointed out that the company is still doing well. It is a strong business that is coming out with new products and variations on old products.

MasterCard also made a smart move by sponsoring the World Cup. This move will increase European penetration, as soccer is the sport of choice for every country but the U.S. and India. He said it is not too late to get into MasterCard and recommended buying the company's stock.

Cramer advised a caller that

J. Crew

is going to be hot when it

goes public next week.

Urban Myth

Cramer told his viewers on Monday that he was wrong about

Urban Outfitters

(URBN) - Get Urban Outfitters Inc. Report

, a stock he was once bullish on, and believes that people should stay away from this stock.

The stock has been on a sickening decline but is still not cheap, he said.

The company, which operates specialty retail stores in three divisions, Urban Outfitters, Free People and Anthropology, in the U.S., Canada and Europe, turned out to be far from the perfection Cramer once thought it was, he said. He believes the stock could go even lower than it is right now and told his viewers not to buy it.

Even though it is facing high-inventory problems, the company is trying to aggressively open new stores, which Cramer thinks is a bad idea.

Not only is the inventory increasing, but people have not embraced the company's clothes. It got the fashion wrong, Cramer said. In addition, if the company is downgraded, which might happen, the stock will fall lower than it is now.

Although some people are under the notion that the company might still turn itself around, Cramer said he does not see any signs of such an occurrence.

Lightning Round

Cramer was bullish on

Smith Micro Software

(SMSI) - Get Smith Micro Software Inc. Report



(HAL) - Get Halliburton Company Report



(NBR) - Get Nabors Industries Ltd. Report



(NOK) - Get Nokia Corporation Sponsored American Depositary Shares Report


Allegheny Technologies

(ATI) - Get Allegheny Technologies Incorporated Report


Companhia Vale do Rio Doce

(RIO) - Get Rio Tinto Plc Report


Consol Energy

(CNX) - Get CNX Resources Corporation Report


Grey Wolf

( GW) and


(DIS) - Get The Walt Disney Company Report


Cramer was bearish on

Hercules Offshore




( TKLC),

XTO Energy

( XTO),

Nektar Therapeutics

(NKTR) - Get Nektar Therapeutics Report


Titanium Metals




( TXU).

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 and Nabors Industries.

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. 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.