Skip to main content

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

Get the Lead Out

A valuable market opportunity, Cramer told viewers of his "Mad Money" TV show Monday, is when a "bogus" lawsuit puts a terrific company on sale.

Such an event occurred last week with


(SHW) - Get Sherwin-Williams Company Report

, which lost $1.3 billion in market cap after an adverse "public nuisance" ruling in Rhode Island related to a lead-paint lawsuit.

While a worst-case scenario would call for the company to remove its paint throughout the state, Cramer said that comes with the assumption that the ruling will hold up.

But, "there's no way it's going to cost as much money as people think," Cramer said, adding that investors are now in waiting mode as a Rhode Island appeals court will decide Tuesday whether the company should have to pay punitive damages.

Cramer said investors should buy the stock after the ruling; but Cramer said that ultimately the ruling should be overturned on appeal.

He said the difference between a company like Sherwin-Williams and the tobacco and asbestos companies is that the latter knew they were harming consumers.

But Sherwin-Williams, Cramer said, didn't know lead paint was a problem when it was selling the lead paint. "You can't hold a company liable for what it doesn't know about its products," Cramer said.

Ultimately, this is a "great company," Cramer said, adding that it just raised its dividend.

However, people are panicking and wildly overestimating the losses. "When people panic in a stock, you need to think about buying," Cramer said.

A caller asked Cramer whether a recent decision by


(WMT) - Get Walmart Inc. Report

Scroll to Continue

TheStreet Recommends

to take certain Sherwin-Williams products off its shelves would hurt the company.

Image placeholder title

Cramer said Wal-Mart's move has already been discounted into Sherwin-Williams shares.

Cramer added that he expects Sherwin-Williams to take advantage of the home-remodeling boom, although he favors

Home Depot

(HD) - Get Home Depot, Inc. Report



(LOW) - Get Lowe's Companies, Inc. Report

for home-improvement purposes.

Power Knowledge

Cramer said investors can often get inspired by a great stock for the wrong reasons. This happened for Cramer when trying to consider what stock could most benefit from "dirty bombs" and spent radiation, possible results of recent geopolitical turmoil.

Cramer turned to

Washington Group International

( WGII) because of its ability to post profit, but he found that the company's defense segment wasn't the biggest reason to recommend the stock.

Washington Group has a stellar power and infrastructure business, which includes design, construction and engineering operations. It should be considered a front-runner to build the new Alaskan pipelines and is a player in coal-generation projects and power plant construction, Cramer said.

"Infrastructure is sexier than you think," Cramer said, adding that the company also had a hand in mining, a big growth industry.

Cramer also told a caller that he likes both Washington Group and



in coal-to-diesel technology.

SEC Subpoenas

Cramer welcomed frequent guest and


columnist Herb Greenberg, who disclosed recently that he was subpoenaed in a regulatory investigation into allegations of collusion between short-sellers and a stock-research firm.

Those allegations also involve

(OSTK) - Get, Inc. Report

and its CEO, Patrick Byrne, who, according to Greenberg, has "libeled me and slandered me." (In a related lawsuit, online retailer Overstock has accused research firm Gradient and others of conspiring to manipulate its stock price.)

Cramer revealed that

he, too, has been subpoenaed, because "I said negative things about a stock


Greenberg pointed to the apparent irony of the

Securities and Exchange Commission

issuing a subpoena to him when he and the agency are essentially "doing the same thing, policing bad companies."

Both Cramer and Greenberg suggested a chilling effect would occur if their correspondence with sources were subject to disclosure.

Steeler's Wheel

Cramer said that a ranking of companies on Monday by

The Wall Street Journal

is "going out of its way to lose you money."

The newspaper listed the worst-performing stocks of the past 10 years, but Cramer said the absolute worst is a company he believes that you should own:

Foster Wheeler



Cramer said the company, which competes in the same oil service sector as


(HAL) - Get Halliburton Company Report

, is set to benefit from the current high price of oil.

In addition, any terrorism against oil production could give Foster Wheeler a chance at another contract.

Cramer said the fact that the stock has quadrupled since last May indicates that Foster Wheeler has escaped its past, unlike what the


would have you believe.

"Forget idiotic rankings," Cramer said.

Lightning Round


Cramer was bullish on:


( EDO),

DRS Tech

( DRS),


( BKHM),

Century Aluminum

(CENX) - Get Century Aluminum Company Report



(MTW) - Get Manitowoc Company, Inc. Report



(CELG) - Get Celgene Corporation Report



( DNA)

Black & Decker

( BDK),

MEMC Electronics



Peabody Energy

(BTU) - Get Peabody Energy Corporation Report


Blue Nile




(GOOG) - Get Alphabet Inc. Class C Report



Cramer was bearish on:

Valero Energy

(VLO) - Get Valero Energy Corporation Report


Amylin Pharmaceuticals

( AMLN),








( LU),


( TRDO),


(AA) - Get Alcoa Corporation Report


Johnson & Johnson

(JNJ) - Get Johnson & Johnson Report



(SNA) - Get Snap-on Incorporated Report


Whole Foods

( WFMI),

Juniper Networks

(JNPR) - Get Juniper Networks, Inc. Report



(CSCO) - Get Cisco Systems, Inc. Report


For more of Cramer's insights during the Lightning Round, please 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 Foster Wheeler, Halliburton and Lucent.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 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, 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, 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. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on 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, 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.