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In a switch from Jim Cramer's usual opening segment on "Mad Money," he talked politics Wednesday night. Sort of.

Cramer took a look at the investments of John Roberts, the Supreme Court nominee, whose financial statements were made available on Tuesday. Cramer played "Are You Diversified?" with the federal judge's portfolio.

Roberts, who has half of his money in stocks and half in mutual funds, owns too many mutual funds -- which number about 30 -- Cramer said. He should cut the number of funds he owns to about five or 10, Cramer said.

Roberts has 37 stocks in his portfolio, which essentially makes it look like a mutual fund.

Roberts also has close to 20% of his discretionary portfolio in XM Satellite Radio .

Cramer says that Roberts, even though he has about half of his portfolio split between funds and stocks is not diversified. Why?

Because he has 47.5% of his stock holdings in technology. That is way too much tech, Cramer said. Do not have more than 20% of your portfolio in any one sector, Cramer cautioned.

What's more, with as many stocks as Roberts has, it is difficult to do the necessary homework on each stock; Cramer recommends that investors spend an hour a week doing homework on each stock in the portfolio. Still, Cramer said, "I don't care who you are, you cannot have half of your portfolio in tech."

The thing that really surprised Cramer, though, was the fact that Roberts has very little oil exposure. Roberts, who owns a small amount of EnCana ( ECA - Get Report), needs to pick up some more oil names, Cramer recommended.

Roberts has only 4% of his portfolio in health care. He has some Merck ( MRK - Get Report), Pfizer ( PFE - Get Report), and Johnson & Johnson ( JNJ - Get Report). Cramer said Roberts should pick up some UnitedHealth Group ( UNH - Get Report) as well. Roberts doesn't have any biotech, either. He should own some Genentech , Cramer said.

Finally, Roberts doesn't have any defense names. Cramer says you have to have some health care, oil, and defense in the portfolio.

Penchant for Cendant

Cramer also highlighted Cendant .

He said "it's all coming together for Cendant now, and the most amazing thing is that no one cares."

The company is growing earnings at a double-digit pace and it sells well below a market multiple, Cramer continued. What's more, "no one cares at precisely the moment when earnings could be accelerating, dividends are growing and shares are being bought back hand over fist."

Cramer said that no one cares, "even though Cendant's travel and leisure business has never been stronger. No one cares even though its Coldwell Banker and Century 21 brands should be an excellent and safe way to play the real estate bubble or bonanza, whichever you want to call it."

But no matter, Cramer said. Over the weekend, Barron's called the stock a value trap.

"Me, I don't know how that can be," said Cramer. "I know that this company, if it were just to rename itself 'Real Estate & Travel,' would go up a couple of bucks because it at last would shake the memory of Cendant, the company that was HFS and CUC International put together."

Cramer said "the sale of the last piece of confusing territory, the affinity marketing company that is Trilegent, makes Cendant no more difficult to understand than an American Express ( AXP - Get Report). The difference? I believe it's that Henry Silverman, who used to be such a great spokesman for this entity, doesn't want to do it anymore."

When a company has been left for dead and everyone has given up on it, Cramer said it's time to step up to the plate and buy the stock. "It will be higher a year from now," he said.

Look to Latin America

Cramer told his viewers there is opportunity south of the border. "Latin America has so much growth and so much potential growth," Cramer said. But Cramer said Wall Street is still acting as though dictators are running all of these Latin American countries.

Cramer said that investors should buy Cemex ( CX - Get Report), which is a cement play, and Companhia de Saneamento Basico ( SBS - Get Report), which is a Brazilian water utility.

SBS, which trades at nine times earnings, compares very favorably with Aqua America ( WTR), especially when Aqua trades at 38 times earnings in the U.S. Cramer called the stock undervalued and said investors should take a look at the stock.

Cemex, which trades at seven times earnings, is way too cheap, Cramer said. "It might be the purest play on Latin American growth," Cramer said. In the event of a Latin American boom, Cramer said investors will want to own this name.

Cramer said that given how much Wall Street cares about growth, these stocks are too cheap and too disliked. But it's time to buy these stocks, Cramer concluded.

Herb Blurbs

Cramer had markets commentator Herb Greenberg in the studio for a visit. The two talked about Terex ( TEX) and CVS ( CVS - Get Report).

Regarding Terex, Greenberg said that when he originally wrote about the company, the story was very complicated. And indeed, the company eventually had to restate its earnings. Greenberg doesn't believe that the new highway bill, when it's passed, will do anything for Terex in the short term. It won't do anything for the company until at least 2006, Greenberg said.

Greenberg also took Cramer to task for recommending a stock that is clearly not best of breed in its industry. That honor would go to Caterpillar ( CAT - Get Report). Cramer said he couldn't turn his head on a good trade, however, even though Terex may not be best of breed. What's more, Cramer said Terex shouldn't trade at the considerable discount to Caterpillar that it does. Finally, Greenberg said if you are looking for pure plays in the areas where Terex does business there are better ones out there.

As for CVS, Greenberg has red-flagged the stock in his newsletter. The company has more debt than any of its competitors, Greenberg said. An oddity -- though Greenberg said it wasn't a good reason to red-flag the stock -- is that the company requires its CEO to fly in a corporate jet.

Meanwhile, said Greenberg, the CEO of Walgreen ( WAG), flies coach. Finally, CVS has garnered most of its growth through acquisitions, Greenberg said. But come the end of August, when the company reports its numbers on an anniversaried basis, it is going to show slower growth of about 5% to 6%.

Cramer said he likes both CVS and Walgreen but acknowledged that Walgreen is the better play.

The Lightning Round

Bullish

Cramer was bullish on: MetLife ( MET - Get Report), Life Time Fitness ( LTM), Netease.com ( NTES - Get Report), "the stock is not stopping here," Cramer said; Phelps Dodge , Harris ( HRS), Autodesk ( ADSK), Quicksilver Resources ( KWK), El Paso , SanDisk ( SNDK), PPG Industries ( PPG), Texas Instruments ( TXN), Williams Companies ( WMB), Texas Industries , TXU ( TXU), "the stock is going to $100," said Cramer; Piedmont Natural Gas ( PNY), Smith & Wesson , and Caremark .

Bearish

Cramer was bearish on: Colgate-Palmolive ( CL - Get Report), Tupperware ( TUP), there was nothing to like about its most recent quarter, Cramer said; WebMD ( HLTH), Coca-Cola ( KO), Syntroleum ( SYNM), Pacific Sunwear , Progressive Gaming International Liberty Media ( L), "it is an absolutely terrible stock," Cramer said; Packaging Corp. of America ( PKG), Mueller Industries ( MLI), J.P. Morgan Chase , "you want to own very few banks here," Cramer said; Wind River Systems ( WIND), and Boston Scientific ( BSX).

1. Pigs Get Slaughtered 2. It's OK to Pay the Taxes
3. Don't Buy All at Once 4. Buy Damaged Stocks
5. Diversify to Control Risk 6. Do Your Homework
7. Don't Panic 8. Buy Best-of-Breed
9. Defend Some Stocks 10. Don't Bet on Bad Stocks
11. Own Fewer Names 12. Cash Is for Winners
13. No Regrets 14. Expect Corrections
15. Know Bonds 16. Don't Subsidize Losers
17. No Room for Hope 18. Be Flexible
19. Quit When Execs Do 20. Patience Is a Virtue
21. Be a TV Critic 22. When to Wait 30 Days
23. Beware the Hype 24. Explain Your Picks
25. Find the Bull Market

At the time of publication, Cramer was long Cendant, EnCana, J.P. Morgan Chase and UnitedHealth Group.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, 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 ActionAlertsPLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict."