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"There are times when the market reaches out and gives you a freebie," which is what is happening right now with

Staples

(SPLS)

, Jim Cramer told viewers of his "Mad Money" TV show Tuesday.

At the moment, "opportunity has decided to start bulldozing you," and people are being handed Staples, he said. "If the market operated

on anything close to rational principles, this stock wouldn't be trading as low as it is right now."

Staples is a best-of-breed stock in a very strong sector that has space to grow, Cramer said.

While Staples is leading the pack, there is something that doesn't make sense here -- it's breaking Cramer's rule. It is OK to pay a premium for a best-of-breed stock, and there's no question he wants you to buy Staples, but the thing is Staples doesn't trade at a premium, Cramer said. It is cheaper than its competitors, and this shouldn't be happening, he said.

"So far we haven't fixed this problem, so you've been given a gift certificate for Staples the stock," Cramer said.

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The multiple of a stock, also known as the stock's price-to-earnings ratio, tells investors how much the market is willing to pay for a certain amount of the stock's growth and earnings, he explained.

It doesn't make sense to Cramer that Staples has a cheaper multiple than

Office Depot

(ODP) - Get ODP CORPORATION Report

and

TheStreet Recommends

OfficeMax

(OMX)

, which are worst of breed, he said. Staples has better growth and better margins than the other two, he said.

Also, Staples is still growing and has a seasoned management team, Cramer said.

"It is in expansion stage, whereas Office Depot and OfficeMax are still in their turnaround stages," he said.

The bottom line is that Staples is the best of breed, the cheapest, and a buy, Cramer said.

It's time to pull out the crystal ball and make some mad money off the future, Cramer said.

Lucky Sevens

If people owned

Open Solutions

(OPEN)

last week, they woke up on Monday feeling "like $7," he said.

As the company was taken over by a couple of private equity firms, people made $7 a share doing nothing over the weekend, Cramer explained. And now it's on to find the next Open, he said.

"The crystal ball says the next Open is

S1

(SONE)

," Cramer said.

The first thing to keep in mind, he said, is that because Open is being taken over by private equity firms and not another company, it's headed into the private sector. Because there are only so many companies that make good candidates for private equity firms, Cramer believes these firms are going to start eyeing companies similar to Open.

A company that looks like Open, according to Cramer, is S1. Both are small companies that make software for banks and sell "solutions."

Because he is speculating on a takeover, Cramer said it is important to make sure S1's fundamentals are OK.

"The fundamentals at S1 are good enough here," he said, adding that even though S1 did have a rough patch, it seems to be "back on track."

Right now Cramer said he is bullish on the market, but explained that sometimes it's better to be flexible than it is to be right.

Camping Out in Jellystone Park

"Even though I'm bullish, it's important to understand the bear case," Cramer said. "I am not suggesting that people need to be in the bear camp, but they need to understand where the bears stand."

Right now the bears have two things going for them. First, the market is overbought, which means it has been up in a straight line, Cramer said. "And second, you can no longer take the next rate hike off the table."

Gasoline prices were supposed to go up, and that's one of reason the

Fed

decided to suspend rate hikes. But now there is an "astonishing decline" in gasoline and oil prices, and people also believe the bad news might be over for the housing market, he said.

Although Cramer said he doesn't want to "buy into the argument," he wants his viewers to be aware that people are going to be saying that the idea that rate hikes are definitely done is not the case anymore.

In addition, "a lot of stocks have been moving higher because of multiple expansion," which was prompted by the expectation that the Fed was done raising rates, Cramer said.

There are a number of other things that could also "derail the bull," such as the Democrats taking over the House, he said.

Cramer wants people to understand that everything is not always as rosy as it seems. Although he doesn't believe the current market is anything like it was in 2000, "you can imagine how much richer people would be if they sold

some stock at that time," he said.

"The bottom line here is always take some profit somewhere, not because we are getting bearish, but because we're getting practical and prudent," Cramer said.

Standard Issue

Cramer welcomed Fred Poses, the chairman and CEO of

American Standard's

(ASD)

and asked him to comment on Morgan Stanley analyst Scott Davis' statement that American Standard's "quarter is much worse than we were expecting," and there is "no visibility on a turnaround."

Poses said he agreed that the quarter was worse than he expected, but "there is visibility on a turnaround."

"We continue to work on our productivity, and we continue to work on restructuring," Poses said. "The kitchen business is broken, and our job is to fix it."

As most of the company's business is replacement and remodeling-related and not new-home or construction-related, it is in the company's control, Poses said. He agreed that 2006 was "disappointing."

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

Lightning Round

Cramer was bullish on

Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. (GS) Report

,

Norfolk Southern

(NSC) - Get Norfolk Southern Corporation Report

,

Claire's Stores

(CLE)

,

IAC InterActiveCorp

(IACI)

,

AMN Healthcare Services

(AHS)

and

Arena Pharmaceuticals

(ARNA) - Get Arena Pharmaceuticals, Inc. Report

.

Cramer was bearish on

Sirius Satellite Radio

(SIRI) - Get Sirius XM Holdings, Inc. Report

,

Conexant Systems

(CNXT) - Get VanEck Vectors ChinaAMC SME-ChiNext ETF Report

,

Vonage Holdings

(VG) - Get Vonage Holdings Corp. Report

,

InterMune

(ITMN)

and

Chico's

(CHS) - Get Chico's FAS, Inc. Report

.

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 Goldman Sachs.

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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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.