Click here for an archive of Cramer's "Mad Money" Recaps.


"Hurricanes can't make you money. That trade never works," Jim Cramer said Friday on his "Mad Money" TV show.

"But, you can always make money off of people acting stupidly. You've got to own Montpelier Re Holdings ( MRH) because people always sell good insurance companies during bad weather. It's just the kind of knee-jerk stupid stuff that happens every September, every August, right around now," said Cramer.

Braving the Storms

Cramer said insurance companies always have to pay out during hurricane season, and they manage for that. "That's what they do. They're in the insurance business!" An expected hurricane shouldn't have any effect on their earnings forecasts, he said.

Cramer prefers Montpelier as opposed to American International Group ( AIG), which used to be the insurance play, he said, because of AIG's tarnished image at the moment.

A caller asked if Lowe's ( LOW) and Home Depot ( HD) would be good hurricane plays. Cramer said not really because both Lowe's and Home Depot are "pretty good corporate soldiers," when bad weather strikes. "They don't gouge," he said. "If anything, they give back to their communities."

Unfriendly Skies

When it comes to whether one should own airline stocks, "The answer is always, 'No!'" Cramer said. "These things have been going down for as long as I've been in the market."

Nevertheless, Cramer said he's always asked for airline stock plays. Although not an airline, Aviall ( AVL), an outsourcer for the airlines, is one Cramer recommends. Cramer said Aviall is benefiting from the airlines' struggles because it can help them save money.

A caller wanted to know if there were any helicopter plays Cramer liked. Cramer said that although the helicopter business is healthy, there are no good pure plays because most helicopter companies are part of larger conglomerates.

Another caller wanted to know about World Air Holdings ( WLDA). While Cramer wasn't completely negative on the stock, he said Aviall was the better play.

Martha, Martha, Martha

Cramer is bullish on Martha Stewart Living Omnimedia ( MSO) in no small part because a third of the company's float has been sold short and a "short squeeze is occurring." Cramer says the shorts are way off base. The usual reasons to short a stock -- such as accounting fraud, a massive stock dilution, inflated earnings, inflated expectations or bad management -- simply aren't there with MSO.

"This is why I'm floored when I think about the short story with MSO," said Cramer. "What's the short strategy here? There are so many things that can go right now with this company."

While the company is expensive based on trailing earnings, Cramer said that's no reason to short a stock. It's future earnings that matter, he said, and MSO's future "looks unbelievably bright" with Martha's new TV show and new CEO Susan Lyne at the helm, among other things.

Grey Wolf Stays Aggressive

Grey Wolf ( GW) CEO Tom Richards was a guest on the show via the telephone. Cramer asked if Grey Wolf, which leases oil drilling rigs, is able to meet demand.

"There's no excess supply today, but there's plenty of upside to the business because we're raising rates aggressively," said Richards.

Cramer is bullish on Grey Wolf and thinks the stock can go to $10. The stock closed Friday at $7.20.

"As long as there's no excess capacity and they can raise rates, you know you've got a winner," said Cramer.

Syntroleum's Profit Goal

Cramer also spoke to Syntroleum ( SYNM) CEO Jack Holmes. Cramer asked Holmes if his gas-to-liquids company was about to turn profitable.

Yes, said Holmes. If all goes as planned, "we expect to have profits within the next two years," he said.

Cramer asked Holmes about a criticism of his company that it has issued too much stock.

"Any time you develop new technology, it takes capital to do that," Holmes said. However, the company now has enough cash to last into 2008 without issuing any more stock. Furthermore, "If our game plan comes through like we have planned, we'll be cash positive by that time, and we shouldn't have to make any more equity raises," he said.

Cramer summed up the interview saying, "I want to see profits. I will reserve judgment until I see the profits."

Lightning Round

Bullish

Cramer was bullish on Harley-Davidson ( HDI), McDermott International ( MDR), Johnson Controls ( JCI), Fluor ( FLR), Lufkin ( LUFK), PPL ( PPL), Stolt Offshore ( SOSA), Activision ( ATVI), MicroStrategy ( MSTR), Precision Castparts ( PCP), Sirva ( SIR), Sears Holdings ( SHLD), AMLI Residential Properties Trust ( AML), Headwaters ( HW) and Amgen ( AMGN).

Bearish

Cramer was bearish on Safeway ( SWY), Citigroup ( C), OSI Pharmaceuticals ( OSIP), AMR ( AMR), Hi-Tech Pharmacal ( HITK), Scana ( SCG), Equifax ( EFX), Cheesecake Factory ( CAKE), Medtronic ( MDT), Eastman Kodak ( EK), Alpha Natural Resources ( ANR), Veeco Instruments ( VECO), Entrust ( ENTU) and PLX Technology ( PLXT).

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 Sears Holdings.

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."

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