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After four "miserable" weeks, the market took a significant turn when an influential bearish analyst surrendered, Jim Cramer told told viewers of his "Mad Money" TV show Monday.

He said that noted analyst Meredith Whitney's upgrade of

Goldman Sachs

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

, a stock which Cramer owns for his charitable trust,

Action Alerts PLUS, finally signaled the surrender of one of the last holdouts of market naysayers.

Cramer said Whitney's bearish views towards the financials have been wrong for months. However, since many investors follow her, her change of tone is significant enough to send the markets higher today.

According to Cramer, naysayers like Whitney have assumed that 100% of the adjustable rate mortgages taken out between 2005 and 2007 would default. Even if this were true, said Cramer, the banks have already written off more than $1.4 trillion of loans under a 100% default rate scenario.

Cramer said it doesn't matter why Whitney changed her mind, or why she was to late to do so. He said it just matters that a noted bear has embraced the bulls, and that will only help the markets begin to recover.

Unraveling the Frontier Deal

Shareholders of


(VZ) - Get Verizon Communications Inc. Report

will soon find themselves shareholders of the lesser known

Frontier Communications

(FTR) - Get Frontier Communications Corporation Class B Report

as part of a pending transaction between the two companies.

Cramer dissected the deal with Frontier's president, chairman and CEO Maggie Wilderotter.

As part of the deal, Frontier will buy 4.8 million rural landlines in 14 states from Verizon, in return for stock and debt. Verizon holders will receive 1 share of Frontier for every 4.2 shares of Verizon they own.

Wilderotter said that the deal will triple Frontier's size and make it the largest rural communications provider in the U.S. The company expects over $500 million in cost savings. Wilderotter said the rural market is Frontier's business and the company understands those markets better than anyone.

Frontier has a long history of innovation, said Wilderotter, including offering free PCs to customers in return for bundled services. She said the company does a great job providing value to customers and makes more money, with fewer losses, than bigger companies like Verizon.

After hearing the particulars of the deal, Cramer said he's a believer in the company, saying he's be a buyer, but only after those Verizon shareholders who are likely to sell their new found Frontier shares have done so.

Rising From Bankruptcy

Can a company in bankruptcy be worth adding to your portfolio? Cramer said if the company is

W.R. Grace

(GRA) - Get W R Grace & Co Report

, then the answer is "yes!"

After being tipped by a viewer in last week's Lightning Round, Cramer said he did some homework in W.R. Grace and discovered the company should emerge from its asbestos-induced bankruptcy in the next few months. The new W.R. Grace will have all of its claims settled, will keep its common stock in tact, and will raise additional capital through warrants, not equity.

According to Cramer, the story at W.R. Grace is one of improving fundamentals, as the company has strong market share and margins in both its specialty chemicals and industrial products divisions. He said the company does have some housing exposure, but also a large overseas business to take advantage of a weakening dollar.

Cramer said there is no urgency to buy shares of W.R. Grace, and all speculative precautions should be taken, including using limit orders and not buying after hours. But as W.R. Grace emerges from bankruptcy this fall, there should only be good news ahead for the company, he said.

Mad Mail

Cramer told a viewer that he'd recommend


(T) - Get AT&T Inc. Report

for its dividend yield in a retirement portolio, but only if it's less than 20% of the total value.

TheStreet Recommends

Lightning Round

Cramer was bullish on


(PCAR) - Get PACCAR Inc Report


Lincoln National

(LNC) - Get Lincoln National Corporation (LNC) Report


First Niagara Financial




(HAS) - Get Hasbro, Inc. (HAS) Report


Jones Apparel



He was bearish on

Energy Conversion Devices



American Dairy



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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, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 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 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, 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.