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"My new favorite stock in the biotech development space is

Arena Pharmaceuticals

(ARNA) - Get Arena Pharmaceuticals, Inc. Report

," Jim Cramer told viewers of his "Mad Money" TV show Tuesday.

Back on his

Jan. 11 show, Cramer told viewers there were two biotech stocks that people had to own. One of them,

ZymoGenetics

( ZGEN) is down since he recommended it, but Cramer still likes this stock.

The other biotech play Cramer advised market players to get into was

Myogen

( MYOG). Since that time, Myogen is up more than 50%.

Gilead Sciences

(GILD) - Get Gilead Sciences, Inc. Report

, which has

agreed to acquire Myogen, "is smart in making this deal, and I would buy it here," Cramer said.

TheStreet Recommends

The next Myogen could be Arena, which is a little biotech company like Myogen that could get taken over because of its pipeline, he said. Arena has a "hot product" in its pipeline -- a weight-loss drug that should be "a huge revenue generator."

"People desperately want to look good," Cramer said.

The need to be thin is at least as important as it is to have wrinkle-free skin, and Arena is the play on this mentality, he said. Two-thirds of Americans in this country are overweight and Cramer believes Arena has the best obesity pill.

However, as Arena is a "tiny little company," he emphasized people use limit orders. The fact that it is small also means it could be swallowed by another company, such as Big Pharma companies that are "desperate" for something like Arena, Cramer said.

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"Even if it doesn't get a bid, it has enough money to stay afloat," he added. "And its obesity drug could make you some money."

Arris Apparent

A week ago Cramer recommended a newly public company by the name of

DivX

( DIVX). However, now its price is up, he said, and it's time to take some of this stock off the table and bring in the profit.

Although DivX wasn't exactly the next

Akamai Technologies

(AKAM) - Get Akamai Technologies, Inc. Report

, Cramer believes

Arris

(ARRS) - Get ARRIS International Plc Report

could be.

He recommended this stock knowing that Arris has been a "disappointment" and a "dicey stock." And although Cramer said he has gotten Arris wrong in the past, he believes it could benefit from the triple play

Internet, cable and telephone service that big cable companies are in the middle of rolling out right now.

Arris makes cable modems and IP switching systems and basically "supports the cable companies," he said.

Even though Cramer said he would put Arris, which competes against

Cisco

(CSCO) - Get Cisco Systems, Inc. Report

and

Motorola

( MOT), among the worst of breed, it is in a great sector.

Cisco and Motorola "are both better companies than Arris" and are in a position where they could "crush it," he said. "But so far they haven't been able to nip at it, and they shouldn't be able to anytime soon."

"There are times when a trend is so strong that it's time to buy worst of breed," Cramer went on to say. "I'm breaking the rule and saying Arris should work here."

In addition, Arris, which is purely levered to the triple play, has been turning itself around. The company just got a big two-year deal with

Time Warner Cable

(TWX)

and "for the moment, it is taking market share from Motorola and Cisco, he said.

Casino Deal Pin Action

If people owned

Harrah's Entertainment

( HET) before it

got an offer from private equity firms Apollo Management and Texas Pacific to buy the company for $81 a share, they have to feel great, Cramer told his viewers.

But for all the rest of the people who didn't own it, Cramer believes this could offset other acquisitions in this sector and make people some money.

It is too hard to take over little companies, so private equity players should look at other big players like Harrah's

For Cramer there is only one play off of the Harrah's deal and that is

MGM Mirage

(MGM) - Get MGM Resorts International Report

, he said.

If private equity players want Harrah's, they probably want stocks that look like Harrah's and MGM does. They both had similar market caps before Harrah's announcement and are both focused on high rollers.

"But they aren't exactly alike because MGM is the better company," Cramer said. "MGM is a better company because of Macau. Harrah's doesn't have any Macau potential, but MGM does."

In reality, Cramer doesn't believe that MGM will get a bid, but he still believes it's a buy because the downside risk with MGM just got lower, he said.

In addition, "everyone on Wall Street knows the private equity guys need to

be buying companies," he said. And speculators will come out and buy it off the speculation that it will get a bid as it gets cheaper, he said.

Harrah's deal has limited MGM's downside and made it "a whole lot more sexy," Cramer said.

Speaking With Administaff

Cramer welcomed

Administaff

( ASF) Chairman and CEO Paul Sarvadi to the show and asked him to outline the company's growth.

"We're continuing to do extremely well and reported more than 32% earnings growth last quarter," Sarvadi said.

In addition, Sarvadi said the company is continuing to buy back stock "because it's a great opportunity."

"We look at our buyback program as a way to invest some of our cash," Sarvadi said. "Whenever the stock price is at a level that makes it such a tremendous value, we buy it back."

Right now Administaff is trading at a multiple in the low 20s, whereas historically, it has been 30-plus, he went on to say.

To view Cramer's interview with Sarvadi, click here.

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

Level 3 Communications

(LVLT)

,

Apple

( ERTS) and

Electronic Arts

( ERTS).

He was bearish on

Cameco

(CCJ) - Get Cameco Corporation Report

and

Activision

(ATVI) - Get Activision Blizzard, Inc. Report

.

Lightning Round

Cramer was bullish on

Accenture

(ACN) - Get Accenture Plc Class A Report

,

Smithfield Foods

(SFD)

,

AU Optronics

(AUO)

,

Guitar Center

( GTRC),

Corning

(GLW) - Get Corning Inc Report

,

Walter Industries

(WLT)

,

Microsoft

(MSFT) - Get Microsoft Corporation Report

,

THQ

(THQI)

,

Electronic Arts

( ERTS),

Google

(GOOG) - Get Alphabet Inc. Class C Report

,

Waste Management

( WMI),

Darden Restaurants

(DRI) - Get Darden Restaurants, Inc. Report

,

Wendy's

(WEN) - Get Wendy's Company Report

and

McDonald's

(MCD) - Get McDonald's Corporation Report

.

Cramer was bearish on

BearingPoint

(BE) - Get Bloom Energy Corporation Class A Report

,

Mueller Water Products

(MWA) - Get Mueller Water Products, Inc. Class A Report

,

Alon USA Energy

(ALJ)

,

Take-Two Interactive Software

(TTWO) - Get Take-Two Interactive Software, Inc. Report

,

Linear Technology

(LLTC)

,

Deere

(DE) - Get Deere & Company Report

,

Ciber

(CBR)

,

Axcelis Technologies

(ACLS) - Get Axcelis Technologies, Inc. Report

and

Applebee's

(APPB)

.

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 had no positions in stocks mentioned.

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. 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.