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"Tech stocks are where you want to be in this market," said Jim Cramer on his "Mad Money" TV show Tuesday.

The tech sector, he said, has "convincingly moved into a leadership position."

Cramer said that viewers are probably tired of him recommending

Hewlett-Packard

(HPQ) - Get Report

, a stock he owns for his charitable trust,

Action Alerts PLUS. But the company had a legitimate upside surprise of 5 cents in its recent quarter, and it raised guidance.

Also, H-P benefited from the price wars of its component suppliers, which have helped Hewlett-Packard lower costs without lowering its prices.

Cramer largely credits H-P's success to CEO Mark Hurd, who he said turned the company around after being "a bit of a dud."

Calling into the show, Hurd told Cramer that the "best days of H-P are ahead of it, not behind it." Hurd attributed his optimism to the company's strong growth across the board and to its focus on fundamentals such as cost structure, service and support.

Further, Hurd said, commenting on the recent $1.6 billion acquisition of data center automation software maker

Opsware

( OPSW), "we buy companies that are leaders."

With 65% of its revenue coming from outside of the U.S., Cramer likes that H-P is an international play.

Cramer, who remains bullish on the sector, believes that H-P at $50 is the cheapest big-cap tech stock out there.

To view Cramer's interview with Mark Hurd, please click here.

Reading the Obits

Cramer reminded viewers that bull markets are everywhere, including in the obituaries section of the newspaper.

Reading about the passing of coffee pioneer Alfred Peet, Cramer stumbled upon the company he founded,

Peet's Coffee

( PEET), which Cramer said "deserves to be owned."

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Cramer said that Peet played an advisory role in the early days of

Starbucks

(SBUX) - Get Report

, which has roughly 100 times as many stores as Peet's.

Cramer called Peet's a "small rival that can grow," instead of being a "copycat,"and a regional-to-national coffee play, because it plans to open 30 new stores by the end of this year.

Cramer was less enthusiastic about Starbucks, which will need to hire more than 90,000 employees to maintain its expected quality and projected growth.

As a true alternative to Starbucks, Cramer believes there to be "plenty of room for more Peet's stores, 90% of which are in Northern California. Peet's had second-quarter revenue of $50.1 million.

Cramer believes Peet's to be recession-proof, and that an entry point of up to $25.75 is a safe play.

Smoke Out

After the breakup of

Altria

(MO) - Get Report

, which Cramer owns for his charitable trust,

Action Alerts PLUS, many investors are wondering whether to buy into its domestic end or its global share.

Cramer likes both parts of Altria but said that investors should instead be looking at

Carolina Group

(CG) - Get Report

,

Carolina Group is the tobacco unit of

Loews

( LTR). CG's subsidiary Lorillard, which is behind cigarette brands Newport, Kent, True, Maverick, and Old Gold, is the No. 3 cigarette maker in the U.S.

Newport is the top-selling brand of menthol cigarettes, the most profitable cigarette market in the country. Though cigarette sales are falling domestically, menthol continues to rise.

Cramer believes that Newport, which accounts for 9% of the CG's sales volume, has "tons of room" to expand.

Cramer also pointed out that Carolina Group is close to wrapping up a long-standing class action lawsuit. Once that is completed, the company will be free to use its cash. Cramer believes that the cash will be used to increase the dividend from 2.3% to a "stellar yield" of 6.4%.

He likes stocks that offer high dividends, but he also believes that Carolina Group has "growth potential" that many of its competitors do not.

Mad Mail

In his "Mad Mail" segment, Cramer responded to his first letter in agreeing with the viewer's concerns about

Halliburton

(HAL) - Get Report

. Cramer believes that Halliburton spun off KBR incorrectly.

It also lost out in not buying

GlobalSantaFe

(GSF)

, which was instead acquired by

Transocean

(RIG) - Get Report

, which Cramer owns for his charitable trust.

Responding to his final letter, Cramer said that

Tim Hortons

(THI)

is too expensive. Instead, he recommended Peet's, which he believes is better run.

In his "Sudden Death" segment, Cramer was bullish on

United Technologies

TheStreet Recommends

,

EMC

(EMC)

and

E-Trade Financial

(ETFC) - Get Report

. He owns EMC for his charitable trust,

He gave a thumbs down to

Thornburg Mortgage

( TMA).

Lightning Round

Cramer was bullish on

CME Group

(CME) - Get Report

,

Life Partners

(LPHI) - Get Report

,

MasterCard

(MA) - Get Report

,

UnitedHealth Group

(UNH) - Get Report

,

Teck Cominco

(TCK)

,

Cisco Systems

(CSCO) - Get Report

,

Sirius Satellite Radio

(SIRI) - Get Report

,

Brush Engineered Manual

(BW) - Get Report

,

Google

(GOOG) - Get Report

,

Apple

(AAPL) - Get Report

and

L-3 Communications Holdings

(LLL) - Get Report

.

Cramer was bearish on

Ingles Markets

(IMKTA) - Get Report

,

Valassis Communications

(VCI)

Arris Group

(ARRS) - Get Report

and

American Science and Engineering

(ASEI)

.

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

.

Want more Cramer? Check out Jim's rules and commandments for investing from his popular book by

clicking here

.

At the time of publication, Cramer was long Hewlett-Packard, Altria, EMC and UnitedHealth Group.

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.