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(C) - Get Report

disappointing second quarter, it's obvious the supermarket financial model is broken, said Jim Cramer on his "Mad Money" show Monday night.

Indeed, everyone got financial services wrong. Everyone thought that having all of the services under one roof was the right way to go. Cramer told his


audience that the market no longer wants a general practitioner. Instead, Cramer said, it wants a specialist.

So what's the takeaway from Citigroup's lackluster report? Investors should be in the companies that specialize in Citigroup's categories. Investors should be in the best-of-breed companies that compete in those areas in which Citigroup operates.

That means if you want the best retail banker, you should own

Commerce Bancorp

(CBH) - Get Report


If you want the best credit card company, you want to own

Capital One Financial

(COF) - Get Report


In mutual funds, you want to own

Legg Mason

(LM) - Get Report


The best commercial lender?

CIT Group

(CIT) - Get Report


The best brokers to own are

Bear Stearns

( BSC) and

Lehman Brothers

( LEH).

But don't jump in just yet. Wait for Citigroup to get downgraded. And then wait for brokers to downgrade other financial companies as well. After they do, you'll want to come in and scoop up all of the specialists. In other words, stick with purity, Cramer said, and stay away from dilution.

'The Lightning Round'


Cramer was bullish on:

Time Warner




(LOW) - Get Report



(HAL) - Get Report


Fortune Brands

( FO),

Southwestern Energy

(SWN) - Get Report


Sears Holdings







( GENZ),

Grey Wolf

( GW),

UnitedHealth Group

(UNH) - Get Report



(GLW) - Get Report





LSI Logic

(LSI) - Get Report


PMI Group

( PMI),


(MDT) - Get Report


Martha Stewart Living Omnimedia



Marathon Oil

(MRO) - Get Report



Cramer was bearish on:


( BWNG),


(INSP) - Get Report


Lone Star Technologies

( LSS),

MFA Mortgage

(MFA) - Get Report



(NTGR) - Get Report



(MOS) - Get Report


Grant Prideco

( GRP),

FuelCell Energy

(FCEL) - Get Report



(BUD) - Get Report



(IT) - Get Report



(DENN) - Get Report



(NOK) - Get Report



(GERN) - Get Report



(PAYX) - Get Report


Extreme Networks

(EXTR) - Get Report


Shanda Interactive

( SNDA).

Cramer also highlighted his stock pick of the week. He said that investors should buy


(CAT) - Get Report

before it reports second-quarter earnings on Thursday. Cramer believes Caterpillar is going to report a "monster quarter." In fact, Cramer is so convinced that Caterpillar is going to blow away the numbers and that investors will make money by the end of the week, he's recommending the stock now.

Cramer said that in addition to Caterpillar being the best of breed, the company is also a play on oil. How? Cramer said that Caterpillar is the only company out there making equipment big enough to get to shale oil. Oil companies want to get to the oil as quickly as possible, and Caterpillar has the equipment those oil companies need.

Cramer said that


(ETN) - Get Report

, which makes products ranging from engine components to fluid power systems, reported blowout second-quarter earnings on Monday and raised guidance. Should investors go out and buy the stock now? No, Cramer said. It's too late. But those who missed out on Eaton don't have to miss out on Caterpillar.

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Cramer also reminded viewers that when it comes to oil stocks, you have to pay attention to earnings and not hurricanes. Each time a hurricane gets highlighted in the news, investors sell the oil stocks; Cramer said that's misguided.

Instead, he said that as long as oil remains above $50 a barrel, the oil companies are going to have killer quarters. And when the oil and oil drillers report earnings, analysts will raise numbers on higher crude prices. Remember, Cramer said: Oil is high because of demand, not because of hurricanes. When companies like Halliburton fall on hurricane news, Cramer said he buys the stock. Viewers should do the same thing, he said.

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

clicking here

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At the time of publication, Cramer was long Commerce Bancorp, Halliburton, Sears Holdings and UnitedHealth Group.

James J. Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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