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


"The housing bubble is dead," Jim Cramer declared on his "Mad Money" show Monday evening.

The second-home market in particular is being hit by a triple whammy of rising oil and gas prices, rising raw materials costs and rising interest rates, Cramer said.

And Cramer believes that is good news for Merrill Lynch ( MER) and Charles Schwab ( SCH), as individual investors take their money out of real estate and put it in the stock market.

Cramer is also bullish on E*Trade ( ET - Get Report) and Ameritrade ( AMTD) for the same reasons.

Connecting With Conexant

Cramer's stock of the week is Conexant Systems ( CNXT - Get Report). His reasoning is this: JDS Uniphase ( JDSU), a stock that has been "awful," rallied 7% Friday after Citigroup upgraded it. Thus, "if it's time to stop hating JDSU, it's time to start buying CNXT," said Cramer.

Conexant makes chips for DSL modems, optical communications, Wi-Fi and satellite television set-top boxes. Cramer sees Conexant earning 20 cents to 40 cents a share next year. At $1.63, where the stock ended the regular trading session Monday, it isn't expensive, said Cramer.

A caller wanted to know if she should sell Intel ( INTC) to buy Conexant. Cramer said Intel should be held. Conexant is a speculative trade, he said. Intel is an investment.

For a "safe" way to make money on the trading of derivatives, Cramer is bullish on GFI Group ( GFIG).

First, the market for derivatives has been growing at an annual rate of 31% since 2001, said Cramer, and GFI is a pure play on this market.

Second, GFI just created a new market for derivatives with CB Richard Ellis ( CBG) based on European commercial real estate. "I don't know how well this will do," said Cramer. "But, even if the real estate bubble is popping, interest in it is going to be pretty high." The new business is just "mildly" profitable, said Cramer, but "it's a brand new growth engine for GFIG."

Third, GFI stands to benefit if bankruptcy filings increase prior to the effective date of the new bankruptcy law that will make it harder to wipe out debts in a bankruptcy. Since most of GFI's derivatives are credit derivatives, "more bankruptcies mean more trading in credit derivatives," which means "more money for GFIG," said Cramer.

Finally, GFIG just announced an acquisition that will give it more exposure to energy derivatives. GFI's stock was up a lot today on news of the energy derivative acquisition, said Cramer. But, "I say do a 'mon back* if it comes back down," he said.

After-the-Bell Reverberations

Commenting on news after the close, Cramer said Maytag's ( MYG) preannouncement of an earnings shortfall was "really awful" and will also hurt Whirlpool's ( WHR - Get Report) stock tomorrow. \

Tempur-Pedic's ( TPX - Get Report) negative preannouncement that its business is being hurt Hurricane Katrina "raises eyebrows," said Cramer. "You should just sell the stock."

StemCells ( STEM), "which had good things to say... about human stem cells" will put President Bush on the "hot seat."

And, finally, of Procter & Gamble ( PG), Cramer said, "Amen. A company that did not blame Katrina and said it's still going to be able to do its quarter."

In response to a question about Oneok ( OKE - Get Report), Cramer said, "I'm doing a 'mon back because they just sold $600 million worth of properties after the bell. That stock goes higher."

In response to an email question about Sears Holdings ( SHLD), Cramer reiterated he owns the stock (in his charitable trust, ActionAlertsPLUS) for its "multiyear move" because he thinks "if anybody can pull off the merger with Sears and Kmart, it's controlling shareholder, Eddie Lampert."

Cramer was bullish on Goldcorp ( GG) as a "best of breed" play in gold.

And, finally, Cramer said Bear Stearns "wrecked" the stock of Sirius Satellite Radio ( SIRI) for now by saying Sirius "may not make the projections this month" for new subscribers.

'Lightning Round'

Bullish

Cramer was bullish on: TurboChef Technologies ( OVEN), Time Warner ( TWX), Icici Bank ( IBN), Pioneer Natural Resources ( PXD - Get Report), Cisco Systems ( CSCO - Get Report), Tata Motors ( TTM), American Science and Engineering ( ASEI), L-3 Communications ( LLL), Thermo Electron ( TMO - Get Report), Grey Wolf ( GW), Cypress Semiconductor ( CY - Get Report), Genesis Microchip ( GNSS), IntraLase ( ILSE), Ameren ( AEE - Get Report), LSI Logic ( LSI - Get Report), Fortune Brands ( FO), Sprint Nextel ( S - Get Report), UGI ( UGI - Get Report) and National-Oilwell Varco ( NOV - Get Report).

Bearish

Cramer was bearish on: Starbucks ( SBUX - Get Report), Great Wolf Resorts ( WOLF), Novell ( NOVL), Amkor Technology ( AMKR - Get Report), Coeur d'Alene Mines ( CDE - Get Report) and EMC ( EMC).

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


Interested in more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here. It's a series of articles from Cramer on how to become a better investor. The following table lists some of the rules that Cramer dissects.

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
Check back for more of Cramer's Rules

At the time of publication, Cramer was long Intel and 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." Cramer appreciates your feedback and invites you to send him an email by clicking here.