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Diamond Life

Diamond sales are up 14% this year, the biggest increase in 10 years, said Jim Cramer Thursday on his "Mad Money" TV show. The best way to play it is

Anglo American

( AAUK).

Demand for diamonds is being fueled largely by economic growth in China and India. De Beers, which has about 80% market share in diamonds, is privately held. But, Anglo American is publicly traded and owns about 45% of De Beers.

Anglo American hasn't been very well run in the past, said Cramer, but the company is starting to improve. What's more, in addition to diamonds, Anglo American also has exposure to hot natural resources such as coal and in-demand metals such as copper, gold and platinum.

Cramer continues to be bullish on the "mineral supermarkets" such as

BHP Billiton



Rio Tinto

( RTP), which he calls the "




and "

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TheStreet Recommends




of the mineral world. But, Anglo American, he says, "is the

Whole Foods

( WFMI) of the mineral group."

Subsea and FMC

Cramer is bullish on

FMC Technologies


, which represents the future of oil drilling, said Cramer.

The oil-service company makes subsea trees and high-tech horizontal drilling systems, which save oil companies money by not having to reposition their floating platforms each time they want to drill a new well.

There are lots of companies that make horizontal drilling platforms, said Cramer, but FMC has the best technology. The stock is only up 25% for the year because it has been "overlooked," said Cramer, making it an even more attractive buy.

Cramer is also still bullish on



, saying the company has the "best land rights" for natural gas. He thinks the stock "could go to $65 if natural gas goes to $15."

EnCana ended the regular trading session Thursday at $57.48.

Commenting on



, Cramer said the stock is "so right," adding that it is an "unbelievably bad company whose time has finally come."

He thinks the stock has "12, maybe 15 points just to catch up with



. If it comes back to $32, I'll do a 'mon back*," he said.

Finally, in response to a question about liquefied natural gas (LNG), Cramer said he thinks the recent hurricanes in the Gulf will cause people to reconsider the wisdom of locating LNG terminals there.

"The LNG terminal business is going to be kaput because we're not going to be able to site them," he said. That's another reason the price of natural gas will continue to go up.

Feathers for Capstone?


senior columnist Herb Greenberg joined Cramer on the show to discuss

Capstone Turbine


, a stock Cramer is bullish on. Cramer asked Greenberg why he is bearish on Capstone.

Greenberg started off by saying that Capstone is "not the 'ultimate' backup energy play" as some have painted it, because there are plenty of other backup energy methods such as "old gas generators, which work just as well."

Capstone has been in business 10 years and had yet to turn a profit, Greenberg said. What's more, Capstone reported "90% negative gross margins last quarter, negative cash flow and competition from the likes of



," he said.

"What in the world is there to like about this company?"

Cramer said Capstone's backlog was up 100% since last year, for starters.

Greenberg said that while that may be true, Capstone still will need "tons of growth" to become profitable. Greenberg is skeptical of the company's promise to show positive gross margins by 2007.

"They don't tell you how they're going to get there," the columnist said.

Finally, Greenberg said the CEO of Capstone is the former CEO of

York International

( YRK), but he was only the CEO for four months.

"They fired him ... and they alleged things, including ... that he misled the board about York's earnings forecast."

Regardless of the negatives, Cramer said the company is going to report a lot of orders -- and at $3, he likes the stock. Capstone closed the regular session at $3.77.

Cramer asked Greenberg about another stock Greenberg has long been negative on --

LeapFrog Enterprises



Greenberg said that he didn't have anything positive to say about the stock and that it was the most expensive stock in the toy industry. Greenberg doubts that people will pay $100 for LeapFrog's new Fly pentop computer.

Cramer said that LeapFrog is trading at a 52-week low and that he is "going to be right just because it is so hated."

LeapFrog ended the regular trading session at $14.52.

Cramer summed up the interview by saying that Greenberg is too negative and that LeapFrog is a good pick for a toy stock for the fourth quarter.

Capstone, too, is "interesting," he said, because it has been "pushed down" and "microturbines are rocking."

Grim on RIM

Cramer recommend buying the top stock holdings of

Brandywine Funds

for a "quick trade." The reason, he said, is that Brandywine has been one of the top-performing funds this quarter, and the quarter is coming to a close Friday.

Beginning Monday, top-performing mutual funds such as Brandywine will be seeing new money, which they will use to buy the stocks that have been working for them. In the case of Brandywine, that means buying










Weatherford International



Chesapeake Energy



Phelps Dodge

( PD),

Union Pacific



Nabors Industries






American Eagle Outfitters

( AEOS).

Finally, Cramer said



reported a "monster good quarter" after the close. He would do a 'mon back on semiconductors as he believes they're "done going down."

And, Cramer is switching from a triple sell to a "don't buy" on

Research In Motion

( RIMM), saying he thinks the stock will bottom "because tech is going to do fine." RIM ended the regular trading session at $70.

Lightning Round


Cramer was bullish on




McCormick & Schmick's Seafood Restaurant

( MSSR),

Ruth's Chris Steak House



Sirius Satellite Radio



XM Satellite Radio

( XMSR),

Norsk Hydro

( NHY),

Chesapeake Energy




( RESP),

Amerada Hess















Goldman Sachs






United Technologies






Lucent Technologies

( LU),

LSI Logic












St. Joe


,EnCana and Halliburton.


Cramer was bearish on

Home Depot



Outback Steakhouse

( OSI),

Lone Star Steakhouse & Saloon



Krispy Kreme Doughnuts



Montpelier Re Holdings







( DPH),

Nam Tai Electronics

( NT),




JetBlue Airways



Nortel Networks



Harvest Natural Resources









*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 EnCana, Yahoo!, GameStop, St. Joe, Lucent and Halliburton.

James J. Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, 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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