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American International Group

(AIG) - Get Report

and

Capital One Financial

(COF) - Get Report

are two financial names that aren't transparent enough to own, Jim Cramer told viewers of his "Mad Money" TV show Thursday.

With these stocks, people don't know the assets or liabilities, he said, and that's no good. Before the

Fed

announced a modest quarter-point cut, Cramer said he had hesitated to put these two in the "sell block," but now the risk reward is "too darn bad" to own AIG or Capital One.

That said, he did like AIG and Capital One at one time, he said. Cramer called Capital One "the premier credit card company" and said AIG has phenomenal properties and is a terrific insurance business. However, what disturbs him about these companies is that investors don't know the state of their business. "That is disturbing in this environment," Cramer said.

With Capital One, market players have no idea what the company's loan status is or how it's doing geographically. While he's no fan of

CIT

(CIT) - Get Report

, Cramer said CIT shows people all of this information and allows them to make the decision of owning the stock or not. Capital One, on the other hand, has not opened up its books.

In addition, Capital One recently said in regulatory filings that the delinquency rate in its credit cards has increased dramatically, Cramer said. The company spent a fortune buying back stock when it was expensive and now, at a time when capital is hard to come by, it's in need of every bit of capital it can get its hand on.

Moreover, with "virtually no yield support" and a series of bad numbers on the way, Cramer said he has no choice but to tell people to get rid of the stock.

AIG, he continued, has been adamant that it hasn't been affected by the recent slew of bad loans, but to say it is not enough. According to Cramer, the company needs to show it by disclosing its information.

Further, he doesn't believe the company has the yield necessary to carry it through the market's current environment, he said. AIG and Capital One must be avoided here.

Getting Serious About Oil Exploration

"I believe 2008 is going to be the year for natural gas," Cramer told viewers. "It's leaner, meaner and cleaner than coal."

One of his natural gas picks which represents great value is

Anadarko Petroleum

(APC) - Get Report

.

There are two types of oil and gas companies, Cramer said: the ones with growth and the ones with no growth. He puts Anadarko in the growth category.

Cramer said Anadarko gets a lot of its production from deepwater discoveries and has raised its production guidance, Cramer said. "I love the fact that they are drilling."

With that said, he welcomed Anadarko CEO James Hackett to the show and asked him why the issue of natural gas hasn't been at the front and center of the presidential debate.

Hackett agreed that it's a shame that natural gas doesn't get the praise and support it deserves.

Anadarko has demonstrated its belief in natural gas by its ambitious drilling program. In fact, the company's two acquisitions last year were driven toward the idea of alleviating some of the difficulty in operating internationally, Hackett said.

Additionally, he said, Anadarko loves the idea of picking up some more domestic resources especially at a time when environmental concerns are getting larger.

"We are very active in the deep waters of the Gulf of Mexico," Hackett said. Because the state and federal regulations for drilling there are getting tougher, it's a challenge in his business for companies to drill there, he said.

Hackett believes that those who do drill there and do it well "are people that ought to be encouraged."

"You can have your bonds, but I have a hero and he's making you money," Cramer said of Hackett. "Forget bonds. Buy stocks. Buy Anadarko."

The Next Baidu

For investors that want to seek shelter in a foreign stock, Cramer recommended

Mercadolibre

(MELI) - Get Report

.

This company, he said, processes ecommerce transactions, which have been a good business domestically and is an even better business in Latin America, where it's based.

Moreover, Cramer believes Mercadolibre is similar to

Baidu

(BIDU) - Get Report

and

Google

(GOOG) - Get Report

.

The stock has gone up, but it should go higher, he said, just like Google and Baidu continued to after they had runs. Mercadolibre "is the same kind of story and the same kind of stock," Cramer said, although it has more in common with Baidu.

Further, its estimates are low-balled and it's an unknown story right now, he said. However, investors could probably get a better price if they wait for a pullback. But with this kind of stock, Cramer said he wouldn't wait too long to pull the trigger.

Sudden Death Round

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

PetroChina

(PTR) - Get Report

.

He was bearish on

E*Trade

(ETFC) - Get Report

and

China Petroleum

(SNP) - Get Report

.

Mad Mail

In his "Mad Mail" segment, Cramer said he recommends both

Disney

(DIS) - Get Report

and

McDonald's

(MCD) - Get Report

, which he owns for his charitable trust,

Action Alerts PLUS, as stocks parents could buy for their children.

Responding to another mailer who wondered about the recent fluctuating price of oil. Cramer said investors should not pay attention to futures but to the trend -- and the trend shows the price of oil is rising.

Image placeholder title

Lightning Round

Cramer was bullish on

Cynosure

(CYNO)

,

Lawson Software

( LWSN),

Oracle

(ORCL) - Get Report

,

Microsoft

(MSFT) - Get Report

,

Hologic

(HOLX) - Get Report

,

Deutsche Telekom

( DT),

Verizon

(VZ) - Get Report

,

AT&T

(T) - Get Report

,

Textron

(TXT) - Get Report

,

Baker Hughes

(BHI)

,

Halliburton

(HAL) - Get Report

and

Diamond Offshore

(DO) - Get Report

.

Cramer was bearish on

Toyota Motor

(TM) - Get Report

,

Spartan Motors

(SPAR) - Get Report

and

Phillips-Van Heusen

(PVH) - Get Report

.

Want more Cramer? Check out Jim's rules and commandments by

clicking here

.

For more of Cramer's insights during the Lightning Round, click here

.

At the time of publication, Cramer was long Hologic and McDonald's.

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. 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.