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Professor Gadget

"It's going to be a

Best Buy

(BBY) - Get Report

Christmas," said Jim Cramer on his "Mad Money" TV show Wednesday.

Whether it's Christmas shopping, Hanukkah or Kwanzaa, kids want electronic gadgets like the iPod, Sony PSP, and

Microsoft's

(MSFT) - Get Report

Xbox 360, he said.

Adults want high-end TVs, which have come down in price to the point where they're "almost affordable for regular people," said Cramer.

Cramer said a couple things to watch out for, though, when buying the stock of Best Buy, are competition from

Wal-Mart

(WMT) - Get Report

in the form of lower-priced extended warranties, which are a big source of profit for Best Buy, and possible not-so-hot third-quarter results, scheduled to be released Dec. 13.

If the quarter isn't so hot, said Cramer, he would use that as a 'mon back* buying opportunity.

In response to a question about

GameStop

(GME) - Get Report

, Cramer said the company's stock has sold off this week because it sold out of its supply of Xbox 360s on the first day the game system was released.

However, once supply catches up to demand and people start buying games, "all those video games are going to be for sale at GameStop," he said. "This is a classic 'mon back situation."

Commenting on when to sell Best Buy, Cramer said if one wants to approach Best Buy as a trade, the time to sell would be on the last day of the year. The big money will be made after Christmas but before the New Year, he said.

Honor Roll

Cramer is bullish on

ITT Educational Services

(ESI) - Get Report

because Congress may repeal a rule that requires for-profit colleges to teach 50% of their classes in buildings.

For-profit schools are growing four times faster than nonprofits, he said, and that means for-profit online schools will be eligible for more "juicy financial-aid money." If the repeal goes through, it is expected to add $3 billion to $4 billion to an $18 billion industry over the next decade, said Cramer.

Image placeholder title

Cramer likes ITT because it is best of breed. All of the four publicly traded for-profit colleges,

Apollo Group

(APOL)

,

Corinthian Colleges

(COCO)

,

Career Education

(CECO) - Get Report

and ITT have had legal woes and/or have been the subject of investigations, said Cramer.

But, ITT's lawsuits are in the past, he said, and it has the best balance sheet in the group. Furthermore, some might argue that ITT's degrees are "more legitimate" than some of the other online-based schools' "because ITT is a technical school," he said.

Of the other schools, Cramer said Apollo, though it will be a huge beneficiary if the rule is repealed, is a "tad expensive" at about 30 times earnings given that legal proceedings against it are still under way.

Career Education also has strong growth in its Internet division, but its 2003 annual report is being investigated by the

SEC

, said Cramer. The company is also the subject of a lawsuit alleging sexual harassment at one of its colleges, and

60 Minutes

did a story about its "incredibly aggressive salespeople," he said.

Finally, Cramer said Corinthian has "lawsuits everywhere," is restating earnings, and it's costs are spiraling out of control. "This place is a joke!"

In response to a question about

Education Management

(EDMC)

, Cramer said the company is fine, but he prefers ITT.

Sniffing Out Bankrate

Herb Greenberg, senior columnist for

MarketWatch

, joined Cramer for their regular rap session. Cramer asked Greenberg about fax-to-email communications provider

J2 Global Communications

(JCOM) - Get Report

.

Greenberg, who is bearish on J2, said the FCC wants to add a $1 tax to every phone line. J2 tells investors that it doesn't believe such a development would have a material impact on its business.

But, "you know what they tell the FCC?" asked Greenberg. "They say if this tax goes through...it will screw us!"

Cramer then asked Greenberg about

Bankrate

(RATE)

. "Should we get in this thing? It looks like the next financial

Google

(GOOG) - Get Report

!"

Greenberg said Bankrate's stock is up 140% this year. "If the mortgage business...goes down, this business is going to have problems. You've already seen signs of it," he said with page views coming down in the September quarter.

Couldn't Bankrate be an acquisition candidate, asked Cramer?

"If they get acquired, all bets off. Then, it's a good deal," said Greenberg. But, "the slightest whiff...of a small problem with their growth, the stock goes down."

"I like that call," said Cramer. "I think he's two for two today."

Greenberg is "right. These stocks are wrong," he said.

The Hole Gets Bigger

One stock that deserves to be in the prison "sell block," is

Krispy Kreme Doughnuts

(KKD)

, said Cramer. The company has "so many problems...I don't even know where to start."

First, Krispy Kreme is going through a restructuring of "everything they can get their hands on" because the company has "botched everything they've touched so far," he said.

Second, one of Krispy Kreme's larger franchises filed for bankruptcy last month, added Cramer. That followed a lawsuit in September by one of Krispy Kreme's franchises charging that the company had fraudulently billed it and had tried to force the franchise into bankruptcy.

"A company like this lives or dies by its relationships with franchises. When they're in trouble, the company is in trouble," he said.

And, if that wasn't enough, the U.S. Attorney's office is investigating Krispy Kreme, and the company hasn't filed financial statements since October 2004. What's more, some financial statements prior to October 2004 have to be restated, said Cramer.

Cramer is appalled that the

NYSE

is letting the stock trade. Without current financials, there's no way to know anything about the company, he said.

Besides, the Krispy Kreme fad is over, said Cramer. "Who eats donuts these days?"

Lightning Round

Bullish

Cramer was bullish on

Whole Foods Market

( WFMI),

J.C. Penney

(JCP) - Get Report

,

Weyerhaeuser

(WY) - Get Report

,

NitroMed

( NTMD),

Lucent Technologies

( LU),

Syneron Medical

(ELOS)

,

IBM

(IBM) - Get Report

,

Kansas City Southern

(KSU) - Get Report

,

Union Pacific

(UNP) - Get Report

,

Apple Computer

(AAPL) - Get Report

,

Microsoft

(MSFT) - Get Report

,

Taiwan Semiconductor Manufacturing

(TSM) - Get Report

,

Johnson & Johnson

(JNJ) - Get Report

,

General Maritime

(GMR)

,

Headwaters

(HW)

and

TALX

( TALX).

Bearish

Cramer was bearish on

USG

(USG)

,

Martha Stewart Living Omnimedia

(MSO)

,

Gasco Energy

(GSX) - Get Report

,

Merck

(MRK) - Get Report

,

Alcon

( ACL),

ATP Oil & Gas

( ATPG),

eBay

(EBAY) - Get Report

,

ServiceMaster

(SVM) - Get Report

,

i2 Technologies

( ITWO) and

Frontline

(FRO) - Get Report

.

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

.

*For all you home-gamers, a 'mon-back opportunity means Cramer would back up the figurative truck and load up on a stock.

At the time of publication, Cramer was long Microsoft, Lucent and GameStop.

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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