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Jim Cramer is charged up about the stock of EnerSys ( ENS) after a caller brought up the company on his radio show Thursday. After looking into it more, Cramer believes EnerSys is a "major buy," he told viewers Friday on his "Mad Money" TV show.

EnerSys makes industrial batteries that are used for backup power. It's a sleeper industry, said Cramer, but one he believes is in bull market mode given the need for backup power as demonstrated during the recent hurricanes. Cramer said the company sells to the telecommunications industry, the military and hospitals, all of which could use more backup power.

At a multiple of one times sales and 13 times 2007 earnings estimates, the stock is too cheap, he said. Additionally, at Friday's regular session closing price of $14.24, the stock isn't too far above its 2004 public offering price of $12.50.

The risks in the stock as Cramer sees them include that more than half the company's outstanding shares are held by insiders. So, if the stock goes up a lot in a short amount of time, Cramer wouldn't be surprised to see insiders selling. Additionally, the company has a lot of debt and not much cash, he said. The company also gets 40% of its revenue from telecommunications companies, which means any downturn in the telecommunications sector could spell trouble.

EnerSys may be risky, said Cramer, but there are plenty of great reasons to own the stock. If you can buy the stock within 50 cents of Friday's regular session closing price, Cramer believes the trade will be profitable. But, if you have to pay up $2 or more, take a pass and wait for the next idea, said Cramer.

Best Laid Health Care Plans

The state of Florida is implementing Medicaid reforms that will pay private companies to run its Medicaid program, said Cramer. This could be big for the companies selected, and he sees an opportunity for a trade.

Cramer believes WellCare Health Plans ( WCG) and Centene ( CNC) are the best plays. WellCare already does a large amount of business in Florida, said Cramer, and Centene is best of breed.

Cramer would avoid Molina Healthcare ( MOH) and Amerigroup ( AGP), which are worst of breed, he said.

In response to a question about Centene, which has seen its stock go through a bit of a rough patch, Cramer said Credit Suisse First Boston recently recommended the stock, and he doesn't believe CSFB would have recommended it unless it knew things were OK. Cramer believes Centene will report good earnings Tuesday.

Great Google, What a Quarter!

After Google's ( GOOG) "unbelievable" earnings report Thursday, Google's stock traded to $346 intraday Friday, within $4 of Cramer's $350 price target. "It's good to be right," said Cramer.

Google is benefiting from the "greatest secular growth story of the decade," he said, as the Internet and Google are both killing traditional forms of advertising. The Internet's advantage over TV and newspapers, said Cramer, is that Internet advertising allows one to target customers better and track whether people are actually viewing the ads.

Cramer said he probably will not issue a new price target for Google. His $350 price target was primarily an attention getter, he said. And as of Friday, Google has people's attention.

"Forget about $350," he said. All you need to know is "Google is going higher. How much? I don't know."

Cramer explained his former $350 price target was based on an EPS estimate of $7 for 2006 and a P/E multiple of 50. Now, that $7 EPS estimate for 2006 is below all the estimates on the Street, and a 50 multiple is very conservative for a company demonstrating the kind of growth Google is, he said. One could argue Google could make $10 in 2007, he said, but he stopped short of extrapolating further.

"Google remains the lone 'buy, buy, buy,'" he said three times, "on my whole board right now. That's nine buys."

A Nova Take on Chemicals

Nova Chemicals ( NCX) CEO Jeff Lipton joined Cramer by telephone. Cramer asked Lipton if the pain was over in the chemical stocks.

"It's gone. We're getting ready to move up," he said.

How can that be, asked Cramer, when chemical companies' raw costs are "out of control?"

Lipton said the key for the chemical industry is not so much the price of energy as it is supply and demand. "We're running out of inventory. We've got plants down on the Gulf Coast, and demand keeps on perking along. So, we're looking at a lot of pricing power for our industry."

Cramer wanted to know, if that is true, what Nova plans to do with the cash it should be able to generate.

Lipton said his company would continue to buy back shares and would avoid investing in money-losing situations.

Cramer pointed out the company had lost money in one of its product areas since the fourth quarter of 2000.

"That's true," said Lipton. "The business has been lousy. It's been lousy for three or four years. ... But, it's just getting ready to turn the corner," he said.

Cramer summed up the interview saying, chemical stocks are tough. If you're a value-oriented investor, it's worth taking a look. "Me? I'm in don't-buy mode."

Caller Queries

In response to a question about ITT Industries ( ITT), Cramer said ITT is a best-of-breed company and that he would buy it. He believes ITT is headed to $130. The stock ended the regular trading session Friday at $110.50.

A caller asked about the use of stop-loss orders. Cramer said if you have to be away from a computer or phone, stop-loss orders can be useful. Otherwise, he doesn't recommend them.

Lightning Round

Bullish

Cramer was bullish on Whole Foods Market ( WFMI), Best Buy ( BBY), Peabody Energy ( BTU), Allscripts Healthcare Solutions ( MDRX), Broadcom ( BRCM), E*Trade Financial ( ET), Charles Schwab ( SCH), Ameritrade ( AMTD), LSI Logic ( LSI), PepsiCo ( PEP), Pike Electric ( PEC), SanDisk ( SNDK), Ametek ( AME), Boeing ( BA) and Microsoft ( MSFT).

Bearish

Cramer was bearish on Arris Group ( ARRS), NCR ( NCR), Quality Systems ( QSII), FuelCell Energy ( FCEL), Dell ( DELL), Marvell Technology ( MRVL) and Tempur-Pedic ( TPX).


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 and Microsoft.

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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