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Level 3 Communications

(LVLT)

is the way to play video-hosting Web site YouTube, the hottest thing on the Internet right now, Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

"Every single momentum player out there is looking to make money off of YouTube," Cramer said.

However, since YouTube is not publicly traded, Cramer believes the best way to play the popular Web site is with Level 3, which signed a contract with YouTube on Tuesday. According to the contract, Level 3 is to provide YouTube with the broadband it needs to fulfill rapidly growing demand.

"Level 3 just signed a deal to become the backbone of YouTube," Cramer said.

Even though Level 3's stock jumped a little on Tuesday, "it's still not expensive," he stressed, because the YouTube contract "is just the tip of the iceberg" for Level 3. The stock closed Wednesday up a penny at $4.55.

Level 3 is the play on the overall broadband shortage, not just for YouTube, but for other sites as well, since there is so much video content on the Internet, Cramer said. In addition, the company is worth owning because it is growing, it is getting out of debt and it is the last telco player that is worth investing in, he said.

The Do-Naught Donut Standard

For some reason, unbeknownst to Cramer, folks keep asking if they should get into

Krispy Kreme

(KKD)

.

But according to Cramer, this stock is "worse than a tragedy." In fact, he said, if people want to find out if a stock is a sell, then they should use the Krispy Kreme standard. That is, if a stock resembles Krispy Kreme in any way, he believes they should sell it.

There has been no reliable data on the company for the last two years because it doesn't file its financial statements, but people are still willing to pay $8 for the stock, Cramer said incredulously.

In addition, Krispy Kreme lost its CFO and COO within nine months of each other, he said. As if that isn't bad enough, the company "has a terrible trajectory."

It is "one that will never get you out of the House of Pain," Cramer said. It used to be a "high-flying momentum stock" which constantly beat its estimates, until one day it failed to beat its estimates, and instead, just met its estimates.

"That was the first quarter in the company's history that it didn't beat its estimates," Cramer said. "And it never recovered from that point."

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There are a lot of people that own

Hansen Natural

( HANS) and are waiting for it to bounce back, he said. But just like Krispy Kreme, Cramer believes this is a momentum stock which will not bounce back.

"Hansen has never recovered from the time it didn't beat estimates," he said. "It is bear market material."

Am I Diversified?

In the "Am I Diversified?" segment of the show, Cramer's first caller had the following five stocks in his portfolio:

Since Apple and Microsoft are both tech, Cramer advised the caller to swap out Microsoft and into a financial. He suggested this even though he believes both Apple and Microsoft are going up.

The next caller named the following five stocks:

Cramer blessed the portfolio and called it "beautifully diversified."

Vanity TV Fare

Cramer welcomed

Medicis

(MRX)

CEO and Chairman Jonah Shacknai to the show and asked him about the company's latest marketing initiative for Restylane, an injectable gel for the treatment of fine lines and wrinkles.

The company is running a contest called "Hottest Mom in America" and producing it as a reality TV show.

"We need to do this because there are over 11 million women in the U.S. that have both the resources and the need to get restylane injections and probably fewer than a million do it each year," Shacknai said. "We have a tremendously untapped market that we need to reach out to."

It's conducting the contest to reach out to the "deeper mainstream of America," he went on.

Shacknai said they have a terrific production group, which includes Jamie Gold as the show's producer. "Jamie will be able to negotiate with networks, some of which have expressed interest in the show," Shacknai said.

To view Cramer's interview with Jonah Shacknai, please click here.

In the "Sudden Death" round, Cramer was bullish on

Nokia

(NOK) - Get Report

,

Motorola

( MOT),

First Data

(FDC) - Get Report

and

Amgen

(AMGN) - Get Report

.

He was bearish on

Myogen

( MYOG),

Dynegy

(DYN)

and

OmniVision

(OVTI)

.

Lightning Round

Cramer was bullish on

DaimlerChrysler

( DCX),

General Motors

(GM) - Get Report

,

Ford Motor

(F) - Get Report

,

Nabors Industries

(NBR) - Get Report

,

National Oilwell Varco

(NOV) - Get Report

,

Tyler Technologies

(TYL) - Get Report

,

Oracle

(ORCL) - Get Report

,

Whirlpool

(WHR) - Get Report

,

Las Vegas Sands

(LVS) - Get Report

,

International Game Technology

(IGT) - Get Report

,

Amgen

(AMGN) - Get Report

,

Paccar

(PCAR) - Get Report

,

Berkshire Hathaway

(BRK.B) - Get Report

,

Intel

(INTC) - Get Report

,

Matsushita Electric

(MC) - Get Report

,

Consolidated Edison

(ED) - Get Report

,

TXU

( TXU) and

WPS Resources

(WPS) - Get Report

.

Cramer was bearish on

Dresser-Rand

(DRC)

,

LeapFrog Enterprises

(LF)

,

Cognos

( COGN),

Thomas & Betts

( TNB),

Sony

(SNE) - Get Report

and

Emcore

(EMKR) - Get Report

.

For more of Cramer's insights during the most recent 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 International Altria, Game Technology and Nabors Industries.

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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