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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 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

UAL's

( UAUA)

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,

Boeing

(BA) - Get 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

AAR

(AIR) - Get Report

.

A Tale of Two IPOs

Although

MasterCard

(MA) - Get Report

and

Vonage

(VG) - Get 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

Verizon

(VZ) - Get 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 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 Report

,

Halliburton

(HAL) - Get Report

,

Nabors

(NBR) - Get Report

,

Nokia

(NOK) - Get Report

,

Allegheny Technologies

(ATI) - Get Report

,

Companhia Vale do Rio Doce

(RIO) - Get Report

,

Consol Energy

(CNX) - Get Report

,

Grey Wolf

( GW) and

Disney

(DIS) - Get Report

.

Cramer was bearish on

Hercules Offshore

(HERO)

,

Tekelec

( TKLC),

XTO Energy

( XTO),

Nektar Therapeutics

(NKTR) - Get Report

,

Titanium Metals

(TIE)

and

TXU

( 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 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."

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