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To make stock picks in the wake of Hurricane Katrina, identify what are short-term plays and what are long-term plays, Jim Cramer said on his "Mad Money" TV show Tuesday.

Katrina's Short-Term Plays

First, be careful with short-term plays that are "already over." Cramer would classify

Shaw Group

( SGR),

Caterpillar

(CAT) - Get Report

and cement-company stocks in this category.

A short-term trade that still has a "couple more points to go" is

Jarden

(JAH)

, said Cramer. Jarden owns Coleman, which sells camping equipment such as tents, cooking equipment, water purification equipment, flashlights and sleeping bags. These things are needed right now by the Federal Emergency Management Agency, the Department of Homeland Security and hurricane victims, said Cramer.

Also,

Lowe's

(LOW) - Get Report

and

Home Depot

(HD) - Get Report

"can still make you money from these levels," said Cramer. Cramer, who had been bearish on Lowe's and Home Depot before the hurricane, said, "I was wrong. I did not anticipate a catastrophe on this scale. ... This wasn't a hurricane. It was

gotterdammerung

."

Cramer also likes

Phelps Dodge

( PD) as his favorite short-term rebuild play. Even though Cramer advised selling Phelps Dodge a few weeks ago, he said he was wrong. New homes have 400 pounds of copper in them, said Cramer, and PD should benefit.

A caller asked about hotel plays in the wake of the hurricane with so many people displaced. Cramer said even though that was bullish for hotel stocks, the bearish reality of high gasoline prices overwhelms any benefit from the hurricane as people cut back on travel.

Long-Term Disaster Plays

Another caller asked if Caterpillar was a short-term play or a long-term play. Cramer said Caterpillar will work in the long term not only because it is a hurricane rebuilding play, but also because it is an oil and gas play. "If you're going to dig up all that shale, you're going to need CAT."

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Long term, Cramer is bullish on oil, communications and insurance. We're not finding more oil or building more refineries, said Cramer. "We'll never have enough oil again. We don't have enough energy." The long-term picture is one of scarcity.

Refineries are currently the bottleneck for gasoline, and the refinery play Cramer recommends is

Valero Energy

(VLO) - Get Report

.

Companies that own energy resources should also do well. Cramer recommends

EnCana

(ECA) - Get Report

,

Marathon Oil

(MRO) - Get Report

and

Chesapeake Energy

(CHK) - Get Report

.

As for communications, we learned from the hurricane that "we don't have enough phones that work," said Cramer. Phone lines and cell-phone towers will have to be added, and we'll have to put more antennas on the towers we have. Cramer recommends

American Tower

(AMT) - Get Report

and

Global Signal

(GSL) - Get Report

.

Insurance companies should also benefit from the ability to increase premiums in the wake of Hurricane Katrina. Cramer recommends

Montpelier Re

(MRH)

and

Argonaut Group

(AGII)

.

A caller asked about

Chicago Bridge & Iron

(CBI)

. Cramer said he would "ring the register."

Looking Into Masco

Cramer had

Masco

(MAS) - Get Report

CEO Richard Manoogian as a guest by telephone on the show to ask his perspective on rising building materials costs and the demand for building materials in the reconstruction effort in the wake of Hurricane Katrina. Manoogian said in his 40 years in the business, he's never seen "as active a raw-material-cost-increase environment as we've experienced in the last 12 months, and that is clearly continuing."

Manoogian said, however, his company had an "active" strategy to offset those cost increases. "We think in the long run, we can maintain our margins, although in any short period of three to six months, sometimes there's a lag."

Cramer asked Manoogian if Masco would be able to meet the demand from Home Depot and Lowe's, which are about to experience a "gigantic rebuild" in the regions affected by the hurricane.

Manoogian said his company would.

Cramer asked if Manoogian sees an opportunity with Masco's stock in the "doldrums" to create value for shareholders.

Manoogian said Masco buys back 4% to 5% of its outstanding shares each year and pays a 2% dividend. "We have a very active share buyback program underway ... Our goal is to return a billion dollars to shareholders over the next several years."

Cramer summed up the interview saying there could be a lag between when Masco could raise prices. The stock could flatline for a while. "Wait three months," then buy, said Cramer.

After-Bell Reverberations

Cramer commented on news after the bell that Caterpillar is raising prices. "Very few companies can raise prices... Caterpillar remains in very good status."

Cramer is changing his tune on Big Pharma due to a slowdown in the economy and some possible drug approvals.

Bristol-Meyers

(BMY) - Get Report

"has some big drugs pending." The company won approval Tuesday for an arthritis drug, and it is expecting an FDA decision on a diabetes drug Friday. "I have a feeling it could be good, too."

Cramer was also bullish on

Johnson & Johnson

(JNJ) - Get Report

and

Schering-Plough

( SGP). "They are outright buys."

Lightning Round

Bullish

Cramer was bullish on

Motorola

( MOT),

Lucent

( LU),

Archer Daniels Midland

(ADM) - Get Report

,

Hawaiian Electric Industries

(HE) - Get Report

,

Tesoro

(TSO)

,

Isle of Capri Casinos

(ISLE)

,

Intuitive Surgical

(ISRG) - Get Report

,

St. Jude Medical

(STJ)

,

Penn National Gaming

(PENN) - Get Report

,

Best Buy

(BBY) - Get Report

,

Corning

(GLW) - Get Report

,

Carbo Ceramics

(CRR) - Get Report

,

Papa John's

(PZZA) - Get Report

,

Geron

(GERN) - Get Report

,

Commerce Bancorp

(CBH) - Get Report

,

Sanofi-Aventis

(SNY) - Get Report

,

Barnes & Noble

(BKS) - Get Report

,

Genentech

( DNA),

Amgen

(AMGN) - Get Report

,

Thermo Electron

(TMO) - Get Report

,

L-3 Communications

(LLL) - Get Report

and

Ruth's Chris Steak House

(RUTH) - Get Report

.

Bearish

Cramer was bearish on

Ford

(F) - Get Report

,

Walter Industries

(WLT)

,

NewAlliance Bancshares

( NAL),

NPS Pharmaceuticals

(NPSP)

,

Harrah's Entertainment

( HET),

MGM Mirage

(MGM) - Get Report

,

NCI Building Systems

(NCS) - Get Report

,

Tweeter Home Entertainment Group

(TWTR) - Get Report

,

Frontline

(FRO) - Get Report

,

StemCells

(STEM)

,

Mellon Financial

( MEL),

MFA Mortgage Investments

(MFA) - Get Report

,

Amazon.com

(AMZN) - Get Report

,

Scientific-Atlanta

( SFA),

BSD Medical

(BSM) - Get Report

,

Napco Security Systems

(NSSC) - Get Report

,

Finish Line

(FINL)

,

Krispy Kreme Doughnuts

(KKD)

and

Sysco

(SYY) - Get Report

.

For more on the Lightning Round, click here

.

At the time of publication, Cramer was long EnCana, Commerce Bancorp, Lucent and Motorola.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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