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There are only two big makers of passenger jets in the world,

Airbus

and

Boeing

(BA) - Get Report

, and the former is imploding, Jim Cramer told viewers of his "Mad Money" TV show Tuesday.

The most obvious way to play off of the European aerospace company's woes is to invest in its competitor, Boeing, but that's not how Cramer would play it. Instead, he said, investors should concentrate on the pin action.

It's true that since Airbus can't seem to get its business together, most of the contracts are going to Chicago-based Boeing, Cramer said. In fact, Boeing won 55% of 2005's orders by value.

However, since Boeing's stock is

already up significantly, Cramer does not recommend buying it.

Instead, people who want to make money off the decline of Airbus should think of the pin action. For this, players must think of companies that supply to Boeing, but that either do not supply to Airbus, or do so minimally. These companies should get an increased number of orders too, he said. He suggested three companies:

  • Triumph Group (TGI) - Get Report, which designs and builds aircraft components
  • Heico (HEI) - Get Report, which makes replacement parts for engines
  • Moog (MOG.A) , which makes flight controls
Image placeholder title

Bottom Line: Airbus is collapsing, but don't buy its competitor when it's already increased so significantly. Take advantage of the pin action instead.

For a video presentation from Cramer on things to keep your eye on in this market, please click here

.

Hilton Check-In Time

The travel market is booming, which means people need to start to getting some hotel exposure, Cramer said.

Currently, hotel room rates are rising significantly.

Marriott

(MAR) - Get Report

,

Four Seasons

( FS),

Choice Hotels

(CHH) - Get Report

,

Hilton

(HLT) - Get Report

and even

Starwood Hotels

(HOT)

are all going up, he said.

Players must learn to sort through the names and pick the best company to buy, said Cramer; and according to him, the best of breed in this lot is Hilton.

Although six months ago Cramer might not have recommended this stock to people, things are different now, he said. As of Dec. 29, the company merged with

Hilton International

, a totally separate company despite the similar name.

With the acquisition, Hilton became the biggest hotel chain. Although size counts, it's not all that matters, Cramer said.

"I usually like smaller companies that have room to grow," he said. "But Hilton is too good to pass up."

Whereas before the company had no international presence, now it's free of its chain to run wild over the European hotel market, which is where the real money should be over the next 18 months, Cramer said.

This is one of the few cases that has led an acquired stock to go up. The Hiltons have not only created a phenomenal brand name, there is no question that the company is growing, he said.

The proof is in the company's numbers. It is expected to grow earnings at a clip of 20% or more, and it has a 37% gross margin.

It is leagues ahead of its competition, Cramer said. It has a much better gross margin than other hotels because it is trying to own fewer and fewer hotels and is renting out names to franchisees.

Brokerage Fixation

Cramer told his viewers he doesn't understand why investment banks are trading at 8 times their earnings, when they should be trading at much higher numbers.

He believes three investment banks in particular are undervalued and recommends buying them.

Bear Stearns

( BSC),

Goldman Sachs

(GS) - Get Report

and

Lehman Brothers

( LEH) are all buys, Cramer said.

Investment banks are not the same as online brokerages, and electronic banking is not taking over, Cramer emphasized. They have different roles. People need to start doing their homework and get rid of misconceptions that they may have about investment banks before these stocks start getting valued correctly, he said.

Bear Stearns makes a lot of money off of mortgage packaging and selling. Goldman Sachs makes a fortune off of commodities trading, and all investment banks make money off of bonds or fixed income and foreign business, he said.

Investment bankers can also create new products that electronic brokers cannot. Many discount brokerages are doing well, Cramer said, but investment banks don't get any respect and are tremendously undervalued.

Restaurant Talk

Cramer welcomed

Darden Restaurants

(DRI) - Get Report

Chairman and CEO Clarence Otis to the show.

When Cramer asked if rising gases prices will keep people from dining out, Otis replied that people continue to go out in any economic environment. Although, he said, the sector has clearly seen pressures arising, all Darden can do is its job as other things take care of themselves.

Cramer also asked about the turnaround at Red Lobster, one of the company's restaurant brands.

Red Lobster has a talented team, which is where it starts, Otis said. They are brilliant with the basics. That coupled with terrific innovations, in terms of their menus and message to customers, allowed the brand to turn around, he said. He added that there's a lot of room for more Red Lobsters, as well as Olive Gardens, which is in the process of ramping up right now.

When Cramer asked when the Bahama Breeze and Smokey Bones businesses would be all over the country, Otis said that Bahama Breeze is continuing to work on its business model, and the company expects the chain's growth to reignite after that. Smokey Bones is taking a pause after very rapid growth because the company thinks that's the right thing to do right now, he said.

Cramer said the stock is down right now and recommends pulling the trigger on Darden.

"They are not the same business," Cramer said. "But since the Street doesn't get it yet, it is not too late to get into these three, which deserve to be trading much higher."

To view Cramer's interview with Otis, click here.

Lightning Round

Cramer was bullish on

TECO Energy

(TE)

,

Goldman Sachs

(GS) - Get Report

,

Martek Biosciences

( MATK),

Southern

(SO) - Get Report

,

Votorantim Celulose e Papel

( VCP),

Diageo

(DEO) - Get Report

,

Tellabs

( TLAB),

Scientific Games

(SGMS) - Get Report

,

Progressive

(PGR) - Get Report

,

Pioneer Drilling

( PDC),

Grey Wolf

( GW),

Halliburton

(HAL) - Get Report

and

Amgen

(AMGN) - Get Report

.

Cramer was bearish on

Usana Health Sciences

(USNA) - Get Report

,

Gaiam

(GAIA) - Get Report

,

Microsoft

(MSFT) - Get Report

,

Sonus Networks

(SONS)

,

Geron

(GERN) - Get Report

,

Northern Trust

(NTRS) - Get Report

and

Steven Madden

(SHOO) - 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 Halliburton, Microsoft and TD Ameritrade.

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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