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Watts Water Technologies

(WTS) - Get Report

is the stock to buy for exposure in the water sector, Jim Cramer told viewers of his "Mad Money" TV show Thursday.

After hearing about Watts Water from a caller during Wednesday's Lightning Round and doing his homework, Cramer believes that this stock is a "serious buy."

"Watts Water has a theme, and a theme is everything," he said.

When Cramer was first starting out in this game, he learned that market players need to find themes, "things that will work for many years."

"Themes are like tides," he said. "They always come back."

One theme that Cramer has favored on his show is the obsession-with-vanity theme. Another theme he has liked is the shortage of water and the need for clean water.

However, Cramer hasn't been able to find a pure play until now with Watts Water.

Cramer said he's thrown money into water stocks

Pentair

(PNR) - Get Report

and

Aqua America

(WTR) - Get Report

, only to be disappointed. He's also looked at water companies in Europe, "but they, too, are played out," Cramer said.

Although Cramer said he wasn't there for Watts Water from the beginning of its rise, if he's right about the water sector, Watts Water is still a buy.

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"It's an expensive stock in a great growth area," he said. "It is a best-of-breed stock and is cheaper than its peers," which it shouldn't be, he added.

The bears think the water sector is dying down, but they can't see the theme; and by the time the bears turn around, which they will, this stock will be a lot higher, Cramer said.

When he looks at Watts Water, Cramer said he sees a "great play on commercial real estate and a great play on water."

Watts is a "well-run company and a great play on the long-term secular theme," he said. "It is a triple-buy."

Suspicious Minds

Those who watch Cramer know he's not into trading stocks based on what the charts say. However, he does look for things he can't explain in charts.

"I look for anomalies here," he said. "And sometimes these anomalies can make you mad money."

Quest Software

( QSFT) is a stock whose chart

RealMoney.com

contributor Helene Meisler features as "buyable," Cramer said.

Underneath the buyable chart, Quest has an options-backdating scandal, it reported a bad quarter and it has a confusing data business, he said.

"On the surface, Quest does not look like a buyable company," he said. "This one is suspicious, and I like suspicious."

Cramer called it a "broken stock with a base."

Quest's peers have all rallied and left this company behind, he said. Cramer believes that Quest has a "hockey stick end," which means that after an earnings decline, it will turn and have a strong fourth quarter.

Although it missed its last quarter, it's because Quest had trouble closing deals that slipped into the fourth quarter. This -- while "bad for old shareholders" -- is good for those thinking of getting in now.

Quest does have an options problem, but it also has a "pristine, gorgeous balance sheet" and is likely to get taken over, Cramer said. Quest's peers are being taken over, and it looks like a great takeover target, he said.

"Quest is a buyable chart with a good story."

Sell Block

In his "Sell Block" segment, Cramer told viewers how to deal with a stock "freefall" and the importance of patience.

While, he thought

Hershey

(HSY) - Get Report

was a good stock that should be bought, it turns out Cramer "screwed up" with this stock.

In fact, Hershey, reported a bad quarter and dropped from $52 to $50, he said. "Everyone gave up on it all at once."

The wrong way to deal with this is to join in the panic and sell with everyone else, Cramer explained. If people "stayed cool" and waited a couple of days, Hershey is back at $53, and now it's "OK to take it off the table," he said.

Another stock Cramer liked, but didn't turn out to be so good was

Ingersoll-Rand

(IR) - Get Report

, which Cramer owns for his charitable trust,

Action Alerts PLUS.

He never thought the stock, which he liked as an infrastructure play, would be so heavily impacted by its housing business. But it was, and the stock fell to $35, Cramer said.

"If people waited two days, the stock was almost at $37," he said.

The lesson here is that when quality companies drop, they usually bounce back, Cramer said. Hershey and Ingersoll Rand are both headed back to their lows, and it's best to get out of them now.

He also suggested ringing the register on

Continental Airlines

(CAL) - Get Report

, which is up significantly. Although it could still go up further, Cramer said the stock's gotten expensive now.

He also advised taking a little

Guess?

(GES) - Get Report

off the table.

But Cramer said to stick with

International Flavors & Fragrances

(IFF) - Get Report

, which raised its forecast today.

"This stock is not done going up," he said. "I wouldn't take profits on International Flavors & Fragrances."

Cramer welcomed Peter McCausland

Airgas'

(ARG)

chief executive to the show and asked him to tell viewers how much housing his company is levered to residential vs. commercial real estate.

"We don't have much exposure to housing," McCausland responded. "Nonresidential construction is important to us, though.

"Institutional infrastructure energy investments are all booming now," he went on to say. "This is a secular trend that's probably a five- to seven-year cycle, and we're really hooked into it now, and it's helping us."

Cramer told viewers to consider buying Airgas when building a diversified portfolio and looking for an industrial stock.

To view Cramer's interview with Peter McCausland, please click here.

Lightning Round

Cramer was bullish on

Target

(TGT) - Get Report

,

Oracle

(ORCL) - Get Report

,

Federated Department Stores

( FD),

J.C. Penney

(JCP) - Get Report

,

Rite Aid

(RAD) - Get Report

,

Arena Pharmaceuticals

(ARNA) - Get Report

,

Lundin Mining

( LMC),

Norfolk Southern

(NSC) - Get Report

and

CSX

(CSX) - Get Report

.

Cramer was bearish on

Wal-Mart

(WMT) - Get Report

,

Sina

(SINA) - Get Report

,

Tom Online

( TOMO),

Wind River Systems

( WIND),

CKX

( CKXE),

Charter Communications

(CHTR) - Get Report

,

North American Palladium

(PAL)

and

Aluminum Corp. of China

(ACH) - Get Report

.

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 latest book by

clicking here

.

At the time of publication, Cramer was long Ingersoll-Rand.

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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