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"At the bottom, things can go right," Jim Cramer told viewers of his "Mad Money" TV show Thursday.

To bring that point home, he revisited his "Mortgage Madness Index," an index of financial and homebuilding stocks that he created on Aug. 3. The index has been more than cut in half since then, but Cramer now feels "the bottom is in" for some of the most hated names on the list.

First up,

Countrywide Financial

( CFC). Cramer said he likes all the chatter about a possible acquisition of Countrywide by

Bank of America

(BAC) - Get Report

. He hopes investors picked up some of the preferred shares of Countrywide on his earlier recommendations.

Next up,

Washington Mutual

(WM) - Get Report

. Cramer feels the company could be a takeover target and is now turning positive on WaMu.

As for


(C) - Get Report

, Cramer says it will make a lot of money if the

Federal Reserve

continues to cut rates. Citigroup is a stock that he owns for his

Action Alerts PLUS portfolio.

Cramer is also warming up to

Bear Stearns

( BSC), but still prefers

Merrill Lynch

( MER).

In the homebuilding space, Cramer now likes

KB Homes

(KBH) - Get Report


Centex Homes


, but feels


(BZH) - Get Report

is "still too troubled."

In the mortgage insurance space, Cramer says he's no longer a seller of

MGIC Investment

(MTG) - Get Report



(MBI) - Get Report

but would not necessarily be a buyer at these levels, either.

That's also the case for


(BX) - Get Report

. Cramer recommends holding shares already owned, but would not buy more.

And finally, Cramer said he would be a buyer of

Thornburg Mortgage

( TMA), but only the preferred shares, which he believes would see a greater return if the company were to get a takeover bid.

Making Money From Bankruptcies

If you believe the Federal Reserve won't cut rates fast enough and a recession is likely, Cramer recommends

EPIQ Systems


as "the ultimate hedge against prosperity."

EPIQ, Cramer says, makes its money from bankruptcies and foreclosures. The company has 38% sales growth, but trades at less than twice its growth rate, which Cramer says makes it a cheap stock.

The company also recently completed a secondary offering to provide itself with adequate liquidity to take advantage of increasing bankruptcies, which according to Cramer, makes EPIQ the best play if a recession does come.

It's All in the Brands

Cramer welcomed Eric Wiseman, the new president of

VF Corp.

(VFC) - Get Report

to the studio to discuss the current retail environment. While many retailers are struggling, VF Corp. appears to be firing on all cylinders.

Wiseman said the retailer's strength lies in the diversity of its brands, channels, and products. He also notes international sales, which currently account for 30% of its sales, are still growing strong.

He attributed the company's lack of markdowns to its marketing and technology, which allows it to better give customers what they want. He also said the company's lifestyle brands, such as Wrangler, Northface, Nautica and Vans are some of the company's strongest segments.

Cramer said he's normally leery of new CEOs, but feels Wiseman is the exception.

Image placeholder title

Lightning Round

In the Lightning Round, Cramer was bullish on


(TRP) - Get Report



(FLEX) - Get Report


Sears Holdings




(SYMC) - Get Report



(SBUX) - Get Report



(INTC) - Get Report



(PTR) - Get Report


Focus Media

( FMCN),

(BIDU) - Get Report


China Mobile

(CHL) - Get Report

Cramer was bearish on

Jabil Circuit

(JBL) - Get Report



(VRSN) - Get Report


Green Mountain Coffee Roasters



Zions Bancorp

(ZION) - Get Report



(CREE) - Get Report


Waste Management

( WMI)

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by

clicking here


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


At the time of publication, Cramer was long Citigroup.

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.