Click here for an archive of Cramer's "Mad Money" recaps.

The Magic Chef

Sara Lee's

(SLE)

stock has bottomed, and now is the time to buy said Jim Cramer Thursday on his "Mad Money" TV show.

Cramer said Sara Lee is a broken company that is on the mend thanks to CEO Brenda Barnes. It takes a magician to turn around a large company like Sara Lee, he said, and Barnes is "one of the best magicians in the business."

Cramer said Barnes is streamlining Sara Lee, which will increase operating margin, making the company more profitable. Barnes has already sold Sara Lee's direct sales business, he said, and she has plans to spin off the company's apparel businesses.

That will leave a pure-play food and beverage company, he said, which "makes total sense."

Wall Street hasn't yet taken notice the turnaround at Sara Lee is working, he said. So, buy now while the stock's low, so you can sell high after Wall Street catches on, he said.

In response to a question about whether Sara Lee might be an acquisition target, Cramer said once the apparel business is spun off and earnings begin to improve, he could see that possibility.

Responding to a question about

Dillard's

(DDS) - Get Report

, Cramer said Dillard's is "not a high quality situation," and he is not a fan of the stock.Add to bottom first page:

Image placeholder title

Cummins and Boeings

The newest member of Cramer's

Dirty Dozen, "twelve heavy industry, smoke-stack stocks that could make you money" as the

Fed

nears the end of its rate hikes, is

Cummins

(CMI) - Get Report

.

Cummins, which makes power generators and diesel engines, should have been "asphyxiated" by rising interest rates, said Cramer. But, it hasn't been because of BRIC: Brazil, Russia, India and China, he said.

Cummins has "more BRIC exposure than any other American heavy manufacturer," said Cramer. He added, this is the "best exporter of American stuff next to

Boeing

(BA) - Get Report

."

Cummins is also tied to the truck replacement cycle that is in "bull mode until 2007," said Cramer. And, once the Fed stops raising interest rates, Cummins should do even better.

2006 sales are expected to be $10 billion, said Cramer, almost double sales in 2002. For the first nine months of 2005, Cummins earned $7.70 a share, more than its full-year 2004 profits, he said.

Cummins trades at just eight times earnings, and the stock has no buy ratings, he said. Cramer believes that it's just a matter of time before analysts upgrade the stock.

It may take six months, he said, but it will be worth the wait. He sees Cummins going to $100 once the Fed stops tightening.

Cummins closed Thursday at $88.40.

Diamond Jim

There is plenty of chatter about the strength of holiday online sales, said Cramer, and that's one of the reason's he is bullish on Internet diamond retailer

Blue Nile

(NILE)

.

About half the diamonds sold in the U.S. are sold over the Internet, said Cramer, and Blue Nile is best of breed. Blue Nile is becoming

the

place for engagement rings, said Cramer. Engagement rings account for 74% of sales, and the reason is selection, he said.

Blue Nile has exclusive agreements with manufacturers that allow it to display the diamonds on its Web site and place orders with the manufacturers once the diamonds have sold. That means the company carries no inventory.

"Blue Nile could show off virtually every type of diamond out there...while its competitors can only really display the diamonds they already own," said Cramer.

Blue Nile's stock isn't cheap, said Cramer, but you're paying for growth. For the past four years, Blue Nile has averaged 50% annual earnings growth, he said. "That's better than

Google

(GOOG) - Get Report

for heaven's sake!"

New York Times

columnist Joe Nocera joined Cramer by telephone to talk about

Comcast

(CMCSA) - Get Report

. "Why do you think that I'm wrong about Comcast, and maybe there's something here?" asked Cramer.

Nocera said cable bears "aren't thinking about what consumers want." Consumers don't want to watch TV on their computer screens, he said. Unlike fiber-optic lines being installed by phone companies, cable is already hooked up to most homes.

So, if the cable companies can just figure out how to give customers what they want when they want it, it's "game over" for the phone companies, he said.

Nevertheless, said Cramer, the phone companies' push means cable companies no longer have a monopoly.

That's true, said Nocera, and some of the less well-run cable companies may not be able to compete, he added. But, Comcast, with its "20 million subscribers and its really smart CEO" will "absolutely" be able to compete, he said.

Nocera said cable stocks have historically gone through cycles of being in favor and being out of favor. But, if Comcast can get the TV networks and movie houses to agree to be paid in exchange for letting Comcast put all TV shows and movies on demand, Comcast would win, he said.

Finally, following up on a call to buy

SunPower

(SPWR) - Get Report

and

Evergreen Solar

(ESLR)

ahead of a California Public Utility Commission

vote on a measure to give 10-year incentives for the home installation of solar panels, Cramer said the commission approved the measure Thursday evening.

"Those stocks are still gonna fly further. Buy Evergreen. Buy SunPower."

Lightning Round

Bullish

Cramer was bullish on

Walgreen

(WAG)

,

Global Industries

(GLBL)

,

Allscripts Healthcare Solutions

(MDRX) - Get Report

,

Biogen Idec

(BIIB) - Get Report

,

ICICI Bank Limited

(IBN) - Get Report

,

AnnTaylor Stores

(ANN)

,

Advanced Medical Optics

(EYE) - Get Report

,

Quidel

(QDEL) - Get Report

,

BE Aerospace

(BEAV)

,

Deere & Co.

(DE) - Get Report

,

Caterpillar

(CAT) - Get Report

,

Amgen

(AMGN) - Get Report

and

Teva Pharmaceutical Industries

(TEVA) - Get Report

.

Bearish

Cramer was bearish on

Avon Products

(AVP) - Get Report

,

Bodisen Biotech

(BBC) - Get Report

,

Elan

(ELN)

,

OraSure Technologies

(OSUR) - Get Report

,

BEA Systems

(BEAS)

,

Oracle

(ORCL) - Get Report

and

Gehl

(GEHL)

.

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

.

At the time of publication, Cramer was long Boeing and Altria.

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."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. 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.