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NEW YORK (

TheStreet

) -- "You need to take advantage of the down days," were Jim Cramer's words of wisdom to the viewers of his "Mad Money" TV show Thursday.

He said that when markets are mixed, investors need to seek out the bull markets and take advantage of the opportunities as they unfold.

Cramer said the market's attitude that everything is horrible one day and fabulous the next is flawed. He said the truth is that the markets are mixed, a word rarely spoken on Wall Street. But while the masses may be running away from the markets, Cramer said businesses are seeing value, which is leading to the increase in mergers and acquisitions.

Case in point,

Intel

(INTC) - Get Report

, a stock which Cramer owns for his charitable trust,

Action Alerts PLUS. Intel saw value in security giant

McAfee

( MFE), which is why the company was willing to offer a 60% premium to the stock price.

Cramer said

New Alliance Bancshares

( NAL) saw value in

First Niagara Financial

(FNFG)

when it decided to merge, as did

BHP Billiton

(BHP) - Get Report

with

Potash

(POT)

.

Cramer said in this market investors need to anticipate these mergers, and take full advantage of the down days and the value they create. The bull markets are out there, he concluded.

Misunderstood Companies

In the Thursday "Sell Block" segment, Cramer pardoned two stocks that he said have been wrongfully imprisoned by the markets, LED lighting makers

Cree

(CREE) - Get Report

and

Rubicon

(RBCN) - Get Report

.

Cramer said these companies are profoundly misunderstood. In the case of Cree, Cramer said the stock is being held hostage to waning LED backlighting sales for TVs and monitors, despite the fact that backlighting only represents 20% of Cree's sales. What Cree should be levered to, said Cramer, is general LED lighting, which now makes up 50% of Cree's business, and has a strong long-term thesis.

Cramer said Cree is far too cheap, trading at just 17 times earnings, despite a 27% long term growth rate and $9 a share in cash.

In the case of Rubicon, Cramer said the company is down 11 points from its July highs, despite posting a strong quarter on Aug. 5. Rubicon is the only pure play on sapphire wafers, the raw material used for almost all LED lighting chips. The company commands 23% of the wafer market, he said.

Like Cree, Rubicon is selling at a deep discount, trading at just 14 times earnings, despite a 29% long term growth rate. Cramer said the sellers of Rubicon are making a mistake, and the LED industry will only need more and more wafers as new energy efficiency standards roll in between 2012 and 2014.

Latest Bull Market

Looking for the latest undiscovered bull market? Cramer said he's found it in fashion accessories.

Cramer said it took a little digging, but after listening to a few conference calls, the surge in fashion accessories became apparent. He said it started with

Macy's

(M) - Get Report

, which noted strong accessory sales in its July numbers. Then

Coach

(COH)

reported that its purses and wallets were flying off the shelves. Finally, Cramer said the trend was confirmed by

Urban Outfitters

(URBN) - Get Report

, which also noted that accessories were all the rage.

Of the many ways to get into the accessory market, Cramer said he likes

Fossil

(FOSL) - Get Report

, the company best known for its watches, but one that also makes sunglasses, handbags and other accessories.

Fossil reported a blowout quarter on Aug. 2, its second consecutive great number. The company delivered a 24-cents-a-share earnings beat on sales that were up 31%. Fossil also reported stronger-than-expected margins thanks to its ability to raise prices on its merchandise.

Cramer said Fossil is a growth story. The company has 201 stores in the U.S., and more abroad, and after a multi-year hiatus on building new stores, Fossil is starting to expand again. Shares of Fossil trade at just 13 times earnings while the company is growing at an accelerating 17%.

Cramer said he likes Fossil as a way to play accessory sales, but would also recommend Urban Outfitters and Coach.

Acne Treatment Play

In the "Executive Decision" segment, Cramer spoke with Jonah Shacknai, chairman and CEO of

Medicis

(MRX)

, a company that's just one point off its 52-week high.

Shacknai said Medicis has been a leader in the treatment of acne for 15 years, but its newest product, Solodyn, has finally hit a sweet spot, providing effective relief and reduced side effects. He said the strong growth in Solodyn is evidence that people are discovering that the product works.

When asked about the larger outlook for the company, Shacknai said consumers are beginning to feel better and aren't as worried that things will be getting worse economically, so they're beginning to return to Medicis' products. Shacknai remains cautiously optimistic.

Shacknai also highlighted Liposonix, a fat removal system to treat obesity. He said he hopes the Food and Drug Administration will approve the treatment soon here in the U.S.

Cramer said he remains a fan of rival

Allergan

(AGN) - Get Report

, on the strength of their Botox product, but also feels that Medicis has a strong business. He said Liposonix will be huge for the company when its approved and he'd be a buyer of the stock.

Lightning Round

Cramer was bullish on

Chevron

(CVX) - Get Report

,

Travelers Companies

(TRV) - Get Report

,

Prudential

(PRU) - Get Report

,

Weight Watcher's

(WTW) - Get Report

,

Starwood Hotels & Resorts

(HOT)

,

Yahoo!

(YHOO)

,

Home Depot

(HD) - Get Report

and

Pepsico

(PEP) - Get Report

.

He was bearish on

Brigham Exploration

( BEXP),

Hartford Financial Services

(HIG) - Get Report

,

SandRidge Energy

(SD) - Get Report

,

Medifast

(MED) - Get Report

,

JC Penney

(JCP) - Get Report

,

Target

(TGT) - Get Report

and

Strayer Education

(STRA) - Get Report

.

-- Written by Scott Rutt in Washington D.C.

To watch replays of Cramer's video segments, visit the Mad Moneypage on CNBC

.

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

clicking here.

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

.

At the time of publication, Cramer was long Intel.

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. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. 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.