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This week's selloff in energy stocks is an opportunity to buy, said Jim Cramer Friday on his "Mad Money" TV show.

It's hard to call an absolute bottom, said Cramer, but he believes a bottom is close at hand if one hasn't already occurred. Cramer would look to buy energy stocks Monday morning, and if the stocks go lower, he would look to buy more.

Although oil is still in bull market mode, said Cramer, it's no longer the best deal. His favorite energy play is coal, which was down more than oil this week, he said, calling coal stocks cheap at these prices. The best of breed among coal stocks is Peabody Energy ( BTU), said Cramer. Peabody was down about 12% for the week, ending the regular trading session Friday at $74.65. Even though the stock was down, the fundamentals for Peabody haven't changed, he said.

Consider yourself lucky with the selloff, said Cramer, and "get yourself some Peabody Energy while it's still under $80." Over $80, though, and Cramer would look to take some profits.

In response to a question about Fording Canadian Coal Trust ( FDG), Cramer said Fording should be bought. Fording has the biggest dividend among coal stocks, he said, while Peabody is the best of breed.

Commenting on KFx ( KFX) and Arch Coal ( ACI), which have together announced a plan to build a clean-coal processing plant, Cramer said he is not a fan of either company. Cramer said KFx is too promotional and that the company has the "highest press release-per-day ratio" of any company he's seen since the dot-com era.

Aerospace: Easy as RBC

Cramer is bullish on aerospace stocks because when airlines go bankrupt, people "throw money at them," said Cramer. Airlines then buy planes with that money, which means you can do well buying the stocks of Boeing ( BA), Honeywell International ( HON), BE Aerospace ( BEAV), United Technologies ( UTX) or Precision Castparts ( PCP), said Cramer.

But, an under-the-radar play Cramer likes is RBC Bearings ( ROLL). RBC makes ball bearings for use in the aerospace and defense industries (among others), two industries that are in bull market mode, said Cramer. The stock came public in August and is just up modestly since then, he said, but reported 17% revenue growth in its last-reported quarter, much of that growth from aerospace and defense, said Cramer.

In response to a question about a play on avionics systems upgrades, Cramer said he liked Aviall ( AVL) but cautioned the stock is very near its 52-week high. He would let it come down a little before buying.

Commenting on Timken ( TKR), Cramer said Timken was the "king of ball bearings" and is a great company. However, Timken is very well known, said Cramer, which is why he likes RBC Bearings better at this time.

Stocks Best Lost in Translation

Cramer often cautions about investing in stocks of Chinese companies and offered two more reasons to be cautious Friday. Cramer highlighted Tiens Biotech Group ( TBV) and New Dragon Asia ( NWD).

Tiens Biotech may sound like an exciting Chinese biotech company, said Cramer, but in actuality, it isn't a biotech company at all. Instead Tiens makes vitamin and nutritional supplements. But, the "misleading name isn't even the worst part," said Cramer. According to the company's most recent 10-Q, all of the company's sales are made to entities controlled by Tiens' CEO and his family, thus making it impossible to tell if the sales are for real, said Cramer.

New Dragon Asia may sound exciting, too, but it is actually a Chinese noodle company with just 5% growth last quarter, said Cramer. What's worse, insiders recently sold all their stock taking advantage of the stock's significant rise in recent weeks, he said.

The lesson, said Cramer, is at the very least, if you are going to buy Chinese stocks, it's imperative to do your homework. Better yet, if you want to invest in biotech stocks, stick with American biotech stalwarts such as Amgen ( AMGN) and Genentech ( DNA), he said. For food stocks, own General Mills ( GIS).

SanDisk's Music Appreciation

SanDisk ( SNDK) CEO Eli Harari joined Cramer by telephone on the show. Cramer asked Harari why his company was getting into the MP3 music player market when every company except Apple ( AAPL) has failed with it.

Harari said he believes the biggest market for music worldwide will ultimately be cell phones equipped with music capabilities.

Cramer said he agreed and asked Harari if SanDisk's competitor, Samsung, is possibly losing money on its deal with Apple to supply chips for Apple's new iPod nano given the nano's pricing.

Harari said he did not believe Samsung was losing money on the deal. But, he said through the nano, Samsung was upstaging and displacing micro-hard drives with its flash memory chips, which is good news for SanDisk in that it helps open up new markets.

Cramer asked Harari what percentage of cell phones will have slots for flash memory cards in 2006.

Harari said 150 million out of roughly 700 million handsets produced in 2005 would have flash memory card slots, and the market would continue to grow in 2006. Music downloads should fuel that growth, he said.

Commenting on its multilevel-cell (MLC) technology, Harari said SanDisk had licensed the technology to Intel ( INTC), Samsung, Toshiba and Hitachi ( HIT), and his company is suing STMicroelectronics ( STM) over the technology.

Cramer summed up the interview saying SanDisk "is the best-performing stock in tech," and it is going higher, he said.

Lightning Round

Bullish

Cramer was bullish on Sirius Satellite Radio ( SIRI), Lucent Technologies ( LU), Lowe's ( LOW), Exxon Mobil ( XOM), Intermagnetics General ( IMGC), GenCorp ( GY), LeapFrog Enterprises ( LF), Sonic ( SONC), America Movil ( AMX), Pike Electric ( PEC), St. Jude Medical ( STJ), Weyerhaeuser ( WY), Dresser-Rand Group ( DRC), Netflix ( NFLX), National Oilwell Varco ( NOV), Aqua America ( WTR) and Chesapeake Energy ( CHK).

Bearish

Cramer was bearish on Home Depot ( HD), Amylin Pharmaceuticals ( AMLN), TransGlobe Energy ( TGA), Fastenal ( FAST), Applied Materials ( AMAT), Petrobras Energia Participaciones ( PZE), First Marblehead ( FMD), Brightpoint ( CELL), Synovus Financial ( SNV), Vail Resorts ( MTN), Forward Industries ( FORD), Hewlett-Packard ( HPQ), Nortel Networks ( NT) and Blockbuster ( BBI).


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 Boeing, Fording Canadian Coal Trust, General Mills, Intel and Lucent.

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.

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