Cramer's 'Mad Money' Recap: Dec. 3

Cramer says Johnson & Johnson's two deals should lead to other deals.
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On the heels of

Johnson & Johnson

(JNJ) - Get Report

acquiring two companies Thursday, Jim Cramer put on his matchmaker's hat and told the viewers of his "Mad Money" TV show that he's found five other deals that also make sense.

Cramer said now that the acquisition of breast implant maker

Mentor

(MNT)

and biosurgical supplier

Omrix BioPharma

(OMRI)

are off the market, he's looking for the next big deal.

He said there are opportunities galore for forward-thinking companies with enough guts to make such a bold acquisition. He praised Johnson & Johnson, a stock which he owns for his charitable trust,

Action Alerts PLUS, for being one of those companies.

With the markets having ravaged stock prices, Cramer said every company with extra cash should be looking for to buy other companies on the cheap. The first of those companies, he said, should be drug giant

Pfizer

(PFE) - Get Report

.

Cramer said Pfizer should consider buying Botox maker

Allergan

(AGN) - Get Report

. He said Allergan, which up until today competed with Mentor, now competes with the behemoth Johnson & Johnson, and that means it needs to partner with a bigger player to stay competitive.

For Pfizer, Cramer said an Allergan acquisition would be just what the doctor ordered to reinvigorate its stalled stock price that now trades at just 13 times its earnings. Given the multiple Mentor received today, Cramer said Allergan could fetch as much as $54 a share.

Cramer: RIM Has Lost It

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Biotech Plum

Investors looking for the proverbial needle in the haystack should look no further than Cramer's biotech favorite

Celgene

(CELG) - Get Report

, another stock which he owns for his charitable trust

Action Alerts PLUS. He said there aren't many stocks out there with reliable 30% growth, but Celgene is one of them.

For a trade, Cramer likes Celgene ahead of the American Society of Hematology conference being held later this week. The conference, which will showcase the biotech's many achievements, is likely to boost the stock, he said. The company is expected to reaffirm its guidance for 44% revenue growth next year.

For the longer term, Cramer said Celgene is also one of the best recession-resistant stocks out there. Sales of Revlimid, the company's blood cancer drug, is expected to reach $3 billion by 2012. Celgene's No. 2 drug, Vidaza, is expected to hit $409 million in revenue by 2009.

With over 100 clinical trials in the works to expand the applications of its drugs, Celgene is on the right track, since approval for new uses of existing drugs is easier to come by than approvals for new ones, he said.

Cramer said Celgene also offers visibility and is a solid performer. The company has only barely penetrated the market with its drugs and yet has over $2.2 billion of cash on its balance sheet with no debt.

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Down 25 points from its high, Cramer considers Celgene a serious buy at just 23 times its earnings. He said the company should be trading at 30 times earnings and is headed back to the high $60's.

Outrage of the Day

Cramer again took aim at Treasury Department and the

Federal Reserve

, this time for not deciding to buy mortgage backed securities over a year ago.

It's clear that buying these securities works, said Cramer, with mortgage rates now dropping, refinance activity picking up and money finally starting to flow through the struggling sector. So why then, he asked, did the Fed and Treasury not do this a year ago?

He said the arrogance and ignorance that these institutions is mind boggling. "These guys just never anticipated things would get this bad," he said.

Now that the government is on board, Cramer said it should be smoother sailing for the likes of

Bank of America

(BAC) - Get Report

,

Wells Fargo

(WFC) - Get Report

and

JPMorgan Chase

(JPM) - Get Report

, another stock which he owns for his charitable trust

Action Alerts PLUS.

Mad Mail

In this segment, Cramer told a viewer that he's a buyer of

Freeport McMoran

(FCX) - Get Report

for his charitable trust

Action Alerts PLUS, despite the company lowering its dividend.

Cramer told a second viewer that even the belabored

Yahoo!

(YHOO)

may see some upside once it receives a new CEO to replace Jerry Yang.

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Am I Diversified?

Cramer talked with callers to see if their portfolios have what it takes. The first caller's portfolio included

AT&T

(T) - Get Report

,

IBM

(IBM) - Get Report

,

Heinz

(HNZ)

,

Southern Company

(SO) - Get Report

and

ExxonMobil

(XOM) - Get Report

.

Cramer blessed this portfolio as being perfectly diversified.

The second caller's top holdings included

Bank of America

(BAC) - Get Report

,

Frontline

(FRO) - Get Report

,

Cisco

(CSCO) - Get Report

,

AirTran

(AAI)

and

Caterpillar

(CAT) - Get Report

.

Cramer said he'd swap out Frontline for

Nordic American Tanker

(NAT) - Get Report

but otherwise said it was a balanced portfolio.

The third caller had

AT&T

(T) - Get Report

,

Pfizer

(PFE) - Get Report

,

Altria

(MO) - Get Report

,

Kinder Morgan

(KMP)

and

Nvidia

(NVDA) - Get Report

as their top five stocks.

Assuming Nvidia is a speculative stock, he said he'd bless this portfolio as well.

The fourth caller had

Statoil

(STO)

,

Merck

(MRK) - Get Report

,

Apple

(AAPL) - Get Report

,

Eaton

(ETN) - Get Report

and

Goldman Sachs

(GS) - Get Report

as their top five stocks.

Cramer said he'd swap Statoil for

Chevron

(CVX) - Get Report

, but otherwise this, too, is a great portfolio.

Lightning Round

Cramer was bullish on

Barrick Gold

(ABX)

,

RPM International

(RPM) - Get Report

,

Allscripts Healthcare

(MDRX) - Get Report

,

Eaton

(ETN) - Get Report

and

Nokia

(NOK) - Get Report

.

He was bearish on

Microsoft

(MSFT) - Get Report

,

NYSE Group

(NYX)

,

First Solar

(FSLR) - Get Report

,

Cerner

(CERN) - Get Report

and

Motorola

(MOT)

.

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clicking here

.

Read more of Cramer's Mad Money Lightning Round insights

.

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At the time of publication, Cramer was long Johnson & Johnson, Celgene, JPMorgan Chase, Freeport McMoRan and Altria.

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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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.