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Demand for NAND flash memory is so strong and supply is so tight, Jim Cramer is willing to break one of his cardinal rules of investing, buying best of breed stocks, he said Friday on his "Mad Money" TV show.

SanDisk ( SNDK) is the absolute best of breed when it comes to flash memory, said Cramer, and that's the safe way to play it, he said. But if you're willing to take on more risk, Cramer believes you might be able to make even more money buying the "absolute worst of breed" -- Lexar Media ( LEXR).

Cramer said Lexar has been a "piece of garbage." But, because it is so bad, it has the most room to improve, and the market is giving it that chance, he said. Cramer believes if everything goes well for Lexar, the stock has the potential to go to $9.50 or $10. Lexar ended the regular trading session Friday at $6.38.

In response to a question about Apple Computer ( AAPL - Get Report), Cramer said Apple isn't cheap, and if you have a big gain, "no one ever got hurt taking a profit." That said, Cramer believes sales at Apple are still good, and he believes Apple will have a "great" Christmas.

Cramer is bullish on HDFC Bank ( HDB) as a play on growth in India. Cramer believes financial stocks are the best way to play emerging markets, and low interest rates coupled with "colossal" growth in India are bullish for banks there.

Cramer prefers HDFC to another prominent Indian bank, Icici Bank ( IBN), even though Icici pays a higher dividend yield and has broader exposure to the Indian economy. The problem is Icici is closed to investment by foreign funds. HDFC, on the other hand, is still open to foreign investors, "which makes it a lot more appealing," and HDFC reported stronger revenue growth in its most recent quarter than did Icici. Both banks have earnings growth north of 30%.

In response to a question about Rediff.com ( REDF), an Indian Internet company, Cramer said Rediff.com was a "real interesting speculation." But, "I need to be in something ... that I don't have to worry about whether it's going to be hot one day and not hot another," he said, adding that Indian banks' financial reports are similar to American banks, making them easy to follow.

Gas, Gas, Gas

For a short-term natural gas play, Cramer likes EOG Resources ( EOG) and Bill Barrett ( BBG). Prices for natural gas are around $14, up from roughly $7 in May, said Cramer, and many natural gas companies have sold contracts at lower prices. But, EOG and Bill Barrett have lots of gas available to sell on the spot market at today's higher prices, he said. Cramer expects EOG and Bill Barrett to "make the mad money" over the next several quarters.

Longer term, Cramer is still bullish on Chesapeake Energy ( CHK), EnCana ( ECA) and Southwestern Energy ( SWN - Get Report).

Timeout for Gaming Stocks

Gaming stocks have been "flat-lining," said Cramer, so he had Boyd Gaming ( BYD - Get Report) CFO Ellis Landau on the telephone to discuss what could turn the group around.

Landau said his company had been hurt by the hurricanes and that it had to close two casinos as a result. Lower consumer confidence is also hurting the company, he said.

Cramer asked Landau if high gasoline prices were keeping people away.

Landau said anecdotally, at least, high gas prices didn't seem to be a problem.

Of Boyd's planned expansion of its Stardust casino in Las Vegas, the company would be ready to announce its plans at the end of the year, Landau said.

Cramer said Boyd Gaming was one of the two best casino stocks, along with Harrah's Entertainment ( HET). But with gasoline and natural gas prices high and going higher, Cramer is not comfortable buying them now.

Lennar Joins S&P

Commenting on news after the close that Lennar has been added to the S&P 500, Cramer warned shorts to "look out."

Also, the Navy exercised a contract for "double the number of fuel cells," from Hoku Scientific ( HOKU), said Cramer.

Finally, following up on a stock that had stumped Cramer during the lightning round, United Therapeutics ( UTHR - Get Report), Cramer said, "I'm backing the truck up for that one."

Lightning Round

Bullish

Cramer was bullish on Warren Resources ( WRES), Ciena ( CIEN - Get Report), Tekelec ( TKLC), JDSU ( JDSU), PPG Industries ( PPG - Get Report), Claire's Stores ( CLE), Allscripts Healthcare Solutions ( MDRX - Get Report), Hewlett-Packard ( HPQ - Get Report), Southwestern Energy ( SWN - Get Report), Procter & Gamble ( PG - Get Report), Lions Gate Entertainment ( LGF), American Express ( AXP - Get Report), Cendant ( CD), WellCare Health Plans ( WCG - Get Report), UnitedHealth Group ( UNH - Get Report), Weyerhaeuser ( WY - Get Report), Plum Creek Timber ( PCL), Georgia-Pacific ( GP), Newfield Exploration ( NFX), Hornbeck Offshore Services ( HOS - Get Report), Halliburton ( HAL - Get Report), Motorola ( MOT), Ericsson ( ERICY), Advanced Micro Devices ( AMD - Get Report), Toyota Motor ( TM - Get Report), Syneron Medical ( ELOS), Transocean ( RIG - Get Report) and GameStop ( GME - Get Report).

Bearish

Cramer was bearish on Exxon Mobil ( XOM - Get Report), Verizon Communications ( VZ - Get Report), Service Corporation International ( SCI), StoneMor Partners ( STON - Get Report), Dell ( DELL), Circuit City Stores ( CC - Get Report), Radio Shack ( RSH), Brocade Communications Systems ( BRCDE), Nokia ( NOK - Get Report), Best Buy ( BBY - Get Report) and IMAX ( IMAX - Get Report).


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 Cendant, EnCana, Halliburton, GameStop, Motorola, PPG Industries and UnitedHealth.

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.