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A Flying Leap

LeapFrog Enterprises ( LF), "the ultimate bear stock ... is about to change its stripes," said Jim Cramer Wednesday on his "Mad Money" TV show.

"I want you to put the power of hate to work for you and buy a stock that everybody despises," he said. LeapFrog, which makes educational toys, has a history of underperforming, said Cramer.

But, "amazingly, the brand is still pretty strong. It's not a damaged company, so much as it is a mediocre one," he said.

"But even the mediocre guys have their day in the sun," Cramer added.

Cramer thinks the bearish sentiment toward LeapFrog has reached a crescendo, as not one of the 18 analysts who cover the stock recommends it.

Twelve have a hold recommendation, and six have an outright sell, he said. It's at the point where "people don't care anymore."

When you get that kind of bearish sentiment, said Cramer, all you need is a small amount of good news to make the stock "shoot up."

And, Cramer thinks LeapFrog's new product, the FLY pentop computer, which is due out in a few weeks, may be just the ticket.

"I'm not betting on a super turnaround. I'm not gambling on the FLY making the stock a double. No, I'm just sure at $14, this stock is just too hated and too undervalued to miss," said Cramer, noting that some "very smart," value-oriented investors own large amounts of the stock.

I see the stock going to $25 even if the FLY isn't a hit, said Cramer. Shares of LeapFrog closed Wednesday's regular session at $13.90.

Bullish on Another Bear

Cramer is bullish on Bear Stearns ( BSC) after Lehman Brothers ( LEH) reported a "knockout quarter" Wednesday.

Like Lehman Brothers, Bear Stearns spent a "decade ... in the wilderness" in 1990s when it found itself on the outside looking in on a hot tech IPO and equity-underwriting market, Cramer said.

He said the firms reacted by getting into markets nobody else wanted -- Lehman in fixed income and natural resources, and Bear in mortgage-backed securities and prime brokerage.

Those areas are among the hottest right now, said Cramer.

Bear reports earnings Thursday, and Cramer believes that it will beat expectations. But, Cramer suggested waiting until after the earnings report to buy when the "sellers materialize" as they "always do." Then, "do the 'mon back*," he said.

A caller wanted to know what Cramer thought of Morgan Stanley ( MWD), now that former CEO Phil Purcell is gone.

Cramer said, "I think we wait six months. Six months of pain. Then, six months from now, Morgan Stanley might be a buy."

Another caller asked how Lehman Brothers might be affected if the market goes through a prolonged downturn. Cramer said he is "far less worried" about Lehman Brothers under such a scenario "than I am about any other firm on Wall Street."

Security Preach

McAfee ( MFE) CEO George Samenuk joined Cramer by telephone on the show. Cramer asked Samenuk about McAfee's new Internet security product.

Samenuk said that his company is the first to bring out such a comprehensive Internet security product and that his company was prepared to take on Microsoft ( MSFT - Get Report) or any other current or potential competitor by moving faster than the competition.

Cramer asked Samenuk if acquisitions were part of McAfee's strategy.

"Not at all," said Samenuk, who said he remains focused on McAfee's core business of security.

Cramer wrapped up the interview saying, "Now you know why I like the stock. This guy's got the game plan. He's making you money. The stock remains in bull market mode."

Cramer said he thinks McAfee is "still a buy" and is not worried about potential competition from Microsoft.

United About Aetna

Cramer remains bullish on UnitedHealth Group ( UNH - Get Report) despite competitor Aetna's ( AET) cutting of its earnings guidance Tuesday evening.

Aetna isn't as well run as UnitedHealth, said Cramer, and its revenue streams aren't as diverse or fast-growing as those of UnitedHealth.

Additionally, UnitedHealth has a "hammerlock" on seniors, going from $9 billion to $15 billion once its deal with Pacificare Health Systems ( PHS) closes.

"This comes ahead of the change in Medicare laws that will make these people be the best market in America for UnitedHealth wares."

More importantly, AARP has partnered with UnitedHealth to sell AARP's brand of the new Medicare benefit card. "That is going to be so huge, this stock must be bought."

The bottom line, said Cramer, is Aetna's bad news is just bad news for Aetna. "You need to own UnitedHealth Group."

Lightning Round

Bullish

Cramer was bullish on Bristol-Myers Squibb ( BMY - Get Report), Gillette ( G - Get Report), KeySpan ( KSE), Skyworks Solutions ( SWKS - Get Report), Tesoro ( TSO), Frontier Oil ( FTO), Penn National Gaming ( PENN - Get Report), Duke Energy ( DUK - Get Report), Syneron Medical ( ELOS), Patterson-UTI Energy ( PTEN - Get Report), General Dynamics ( GD - Get Report), Ruth's Chris Steak House ( RUTH - Get Report), Georgia-Pacific ( GP), Weyerhaeuser ( WY - Get Report), Plum Creek Timber ( PCL), Lucent Technologies ( LU), Cnet Networks ( CNET - Get Report), Charles Schwab ( SCH), Genentech ( DNA), Amgen ( AMGN - Get Report), Celgene ( CELG - Get Report), Exelon ( EXC - Get Report), Ballard Power Systems ( BLDP - Get Report) and Sears Holdings ( SHLD).

Bearish

Cramer was bearish on Reebok International ( RBK), Shanda Interactive Entertainment ( SNDA), Adobe Systems ( ADBE), Forward Industries ( FORD), Allegheny Energy ( AYE), Limited Brands ( LTD), VeriSign ( VRSN), Allied Waste Industries ( AW), Stryker ( SYK), OSI Pharmaceuticals ( OSIP) and Air T ( AIRT).

*For all you home-gamers, a 'mon-back opportunity means Cramer would back up the figurative truck and load up on a stock.

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 Gillette, Sears Holdings, Microsoft, Lucent 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."