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Jim Cramer issued a mea culpa on Dick's Sporting Goods ( DKS - Get Report) on his "Mad Money" show Tuesday evening.

Dick's shed more than 16% Tuesday, the day after Cramer named the stock a top pick on the CNBC show.

"I don't want to dwell on it too much," Cramer said. "You got hurt but you didn't get annihilated."

Another casualty Tuesday was Deere ( DE - Get Report), whose shares shed more than 11% on a disappointing earnings report.

Tech and retail also are not performing well. What should you do?

First, Cramer said the problem at Dick's is really about guidance and that the quarter was actually OK. He believes management was hopeful, and hope shouldn't be part of the equation.

But Cramer said Dick's management deserves the benefit of the doubt because of its track record. While the company didn't deliver, this was the first time it didn't. "I'd buy Dick's, not sell," he said.

Deere is tricky. Cramer thought after listening to Deere's call that its problems were weather-related. But he said several portfolio managers have told him Deere's management was assuring people last month that weather was not an issue, which goes directly to management's credibility.

Nevertheless, Deere, like Dick's, is best of breed, and Deere's management has been very good for a long time. It's too extreme to sell, but you can't buy aggressively because Caterpillar ( CAT - Get Report) and Terex ( TEX - Get Report) are both down and they both have much more momentum than Deere.

Tech Tells

Tech is easier than Deere and Dick's to explain. Intel's ( INTC - Get Report) issues stem from not being able to deliver enough product. If it could deliver more product, if it had more chipsets, the numbers would go back up.

Cramer also likes Wachovia ( WB - Get Report), which just announced a big buyback and boost in the dividend, and it sells for 12 times earnings.

A caller asked Cramer why banks are doing buybacks now. Cramer pointed to Goldman Sachs ( GS - Get Report), which began buying back its stock 20 points ago. Cramer says the financials don't have a lot of good opportunities to invest their money right now, given the shape of the yield curve. So a good investment would be to buy their own stock, which is what Wachovia is doing.

Good DNA

Cramer spoke about a Wall Street Journal article about how more and more people are contracting lung cancer, even nonsmokers. Cramer emphasized that this news is, of course, tragic. But he said his job is to help people make money, and the sad cancer story helps Genentech , which makes Tarceva, the company's lung cancer drug. It's the only viable drug for lung cancer right now, Cramer said.

"This isn't a daytime talk show," Cramer said. "In this business, you're a fool to pass up an opportunity to make money.

"Genentech comes as close as possible to curing cancer," Cramer said. "You can count on most news like this breaking in its favor.

"Cancer can make you money," he said. "Moral or immoral, as long as it's legal, you should own DNA if you want to make some money."

The biggest move of the year aside from Google ( GOOG - Get Report) was the move in Genentech after it got the approval of its colorectal cancer drug Avastin, Cramer said.

Cramer also owns shares of a company that makes a product that leads to lung cancer. Despite its product -- cigarettes -- Cramer was bullish on Altria ( MO) because "people continue to smoke, and Altria's international business is en fuego."

In response to a caller's question, Cramer said it was best to get into a drug or biotech stock while the potential drug is in the pipeline, not after it is approved. After approval, expectations tend to get too high. Unless you're in early, you can't make the easy money.

Herb and Perfume

Herb Greenberg, senior columnist for Marketwatch, was back on. Greenberg said he is surprised Dick's wasn't down further. He said it is interesting that Dick's paid a very high price for its acquisition of Galyan's, and that the accounting for acquisitions almost always leaves room for the acquiring company to make things look better than they really are.

On Parlux Fragrances Greenberg said: "It stinks to such high heaven that all the perfume in Paris couldn't cover up the stench."

Cramer retorted that it seemed to have earnings momentum and wasn't expensive.

But Greenberg said what he didn't like was that the company announced it was seeking out "strategic alternatives" to bring out shareholder value after the stock had gone from $2 to $30 in the past two years. "You don't have to enhance shareholder value with that!" Greenberg thundered. More than that, he said, Parlux's biggest customer is eCom Ventures, which owns Perfumania, whose second-largest shareholder and former CEO is the current CEO of Parlux.

On Sonic Solutions , Greenberg said the company would have missed earnings had it not had a tax credit no one was expecting. Furthermore, the company guided down in an industry in which there is a lot of competition. Greenberg said he would be taking a closer look at the company.

In Closing

Cramer said the day was all about how bad tech and retail were. But after the close, Hewlett-Packard ( HPQ - Get Report) reported good earnings and said many of its businesses are doing very well.

Applied Materials ( AMAT) said business has gotten better and seems to have the numbers to back it up, "which they haven't had in a long time."Cramer says this is a great scenario for tomorrow, and he thinks it will turn tech around.

"Every time we get a selloff in tech, it's going to be a 'mon back opportunity," said Cramer, meaning it's time to back up the truck and load up on shares. "Bottom line: Do not give up on tech."

'Lightning Round'

Bullish

Cramer was bullish on Hewlett-Packard, Commerce Bank ( CBH - Get Report), Citigroup ( C - Get Report), Walgreen ( WAG), Mentor , SanDisk ( SNDK), Verint Systems ( VRNT - Get Report), Thermo Electron ( TMO), BP ( BP), ConocoPhillips ( COP), Starbucks ( SBUX - Get Report), Yahoo! ( YHOO), Google, ATP Oil & Gas , Terex ( TEX - Get Report), RSA Security , Homex Development ( HXM), Bancolombia ( CIB), Goodrich Petroleum ( GDP - Get Report), Home Depot ( HD - Get Report), Genzyme and Patterson-UTI Energy .

Bearish

Cramer was bearish on Yankee Candle , Shanda Interactive ( SNDA), Chicago Mercantile Exchange ( CME), Mentor Graphics ( MENT), StemCells , Peet's Coffee & Tea ( PEET), VeriSign ( VRSN), Southwest Airlines ( LUV), ViroPharma ( VPHM), FrontLine , Entrust ( ENTU), Sonic Solutions , Hurco ( HURC), Oracle ( ORCL), Elan ( ELN) and Sonus Networks ( SONS).

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 Altria, Commerce Bancorp, Intel and Yahoo!.

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."