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There are three big initial public offerings scheduled this week, but not all IPOs are worth buying, Jim Cramer told viewers of his "Mad Money" TV show Tuesday.

One of the companies slated to have its public debut is

Kellogg Brown and Root

, the engineering and construction unit of

Halliburton

(HAL) - Get Report

, a stock that Cramer owns for his

Action Alerts PLUS charitable trust.

If people pay any attention to the media, they might believe that KBR, which does a lot of contract work in Iraq, is not the nicest business because of rumors that surround the company, Cramer said. However, it is because of this "political baggage" that KBR is being priced at a "sickeningly cheap" price, he said.

Cramer does not believe the politics will hurt the company's bottom line. In fact, KBR has $15 billion of projects ready to get done in its backlog.

"KBR is being issued at a huge discount," he said. "It is in the public eye and apparently the market doesn't like that, but there's no reason for it to trade at a discount."

Once KBR is its own company, its numbers will start speaking for themselves, Cramer said. The IPO is "vastly oversubscribed," he went on to say, and market players have two choices to get some KBR action.

One way is to wait until it becomes public (the IPO has been slightly delayed), but Cramer does not believe this is the right way to get in it. The other way for market players to get KBR exposure is by buying Halliburton.

He believes people should get into Halliburton, not only for KBR, but also because it has the lowest multiple of the oil service group.

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The separation of the companies should be good for KBR as well as Halliburton and should cause both to go up, Cramer said.

"I would be a buyer of KBR even after all the bad things the media has to say about it," he said. "And I would be a buyer of it through Halliburton."

Nymex Demand Is Great

"The big Mack Daddy IPO of this week is the

New York Mercantile Exchange

," Cramer told viewers.

This deal is "hugely popular" and "massively oversubscribed," which means everyone wants a piece of it, he said. In fact, the Nymex

increased the size of the IPO because it is so in demand. This is the one Cramer said he wants people in.

"I believe Nymex deserves every bit of the demand it's getting," he said. "The conventional wisdom is that it is going to be a fantastic stock to own ... and the sentiment is right on Nymex."

As Cramer believes the IPO should be "huge," he said people should buy themselves a piece of it.

"We have had the quietest, most unbelievable bull market in various exchanges," he said, adding that he believes

NYSE

(NYX)

is also a good stock market players can ride from the $90s to the $200s.

Cramer doesn't see any reason for the Nymex to be any different from what he believes about NYSE.

Other exchanges that have performed well are the

International Securities Exchange

(ISE)

, which is up 150% since it went public in 2005, and the

Chicago Mercantile Exchange

(CME) - Get Report

, which is up 1,300% in the four years since it came public, he said.

"These exchanges are winners," Cramer said. "Nymex fits a pattern that has been working."

If it opens up 25 points higher than the IPO is to be priced, he said he believes it's still a buy and if it opens up 15 points higher, he suggested buying double.

Use limit orders and don't buy it all at once, Cramer reminded viewers. This is a stock he said he wants people to get in and "ride it much higher."

Avoid Getting Hertz

Unlike KBR and Nymex,

Hertz

is an IPO people should not go near, he said. Cramer compared this IPO to

Sealy's

(ZZ)

, one of his "worst picks."

Cramer advised market players not to touch it with a 10-foot pole and said he believes it is going to be "a big disappointment" because of the company's recent history.

After

Ford

(F) - Get Report

sold Hertz to three private equity firms, the company's debt increased, and its net income got knocked down, he said.

Although the firms should be able to raise $1.6 billion for the IPO, 62% of this will go to repaying a loan, which was taken out by the private equity firms to cover a special dividend they issued, Cramer explained.

The private equity firms are not only getting more money by taking Hertz public, but they will hold seven of Hertz's nine board member seats.

In addition, "the car-rental business is not so great that people would want to own its leading member," he said.

Wright's View

Cramer welcomed

Wright Medical

(WMGI) - Get Report

CEO Gary Henley to the show and asked him why analysts are worried about the stock of the orthopedic medical-device company.

"I don't know, you're going to have to ask them," Henley responded. "I thought it was a pretty good quarter.

"We are still in good shape," he continued. "Our preliminary guidance for 2007 is still 9% to 11%, the market is only growing at 8% or so, and we're going to get some leverage at the bottom line."

When Cramer asked about his sense of the Democrats taking over Congress, Henley said he would rather not comment on the political side of things. "We're focused on our products and our market, and we're feeling pretty good about that," Henley said. "It is a big market, and it's growing well."

"I agree with Gary," Cramer said.

Any time there is weakness in these companies it is an opportunity to buy, he said, giving Wright Medical "a triple buy."

To view Cramer's interview with Gary Henley, please click here.

A Final Note on Drugs

On a closing note, Cramer told viewers the drug stocks started to rally today and blessed the stocks as an investment.

In particular, he advised watching

GlaxoSmithKline

(GSK) - Get Report

as "it's probably the cheapest with the highest yield."

Lightning Round

Cramer was bullish on

General Cable

(BGC)

,

Amgen

(AMGN) - Get Report

,

Harley-Davidson

(HOG) - Get Report

,

Nice Systems

(NICE) - Get Report

Flir Systems

(FLIR) - Get Report

,

Continental Airlines

(CAL) - Get Report

and

UAL

(UAUA)

.

Cramer was bearish on

Borders

(BGP)

,

Encore Wire

(WIRE) - Get Report

,

PDL BioPharma

(PDLI) - Get Report

,

American Science & Engineering

(ASEI)

,

JetBlue Airways

(JBLU) - Get Report

and

IndyMac Bancorp

(NDE)

.

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.

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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