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Americans gotta have their bling, and if you can't afford a diamond, you'll buy something from Charles & Colvard ( CTHR), Jim Cramer said Thursday on "Mad Money."

Charles & Colvard's synthetic moissanite jewels cost one-tenth the price of a diamond but are "more brilliant and more lustrous than diamonds," he said. Moissanite jewelry is carried at more than 700 J.C. Penney ( JCP) stores, said Cramer, and it is being tested at Zale ( ZLC) stores and Helzberg, owned by Berkshire Hathaway ( BRK.A).

Cramer doesn't believe moissanite will penetrate the high-end diamond market, which is in an "unbelievable bull market." He would recommend Anglo American ( AAUK), which owns 40% of De Beers, as the best play on real diamonds. But Cramer said high-end and low-end jewelry market can work at the same time as we become a class society, and because "at least in the medium term, America is not going to have a strong economy."

Charles & Colvard has posted triple-digit growth since the third quarter of 2004. For 2005, earnings are expected to be up 274%, Cramer said.

"This is the right kind of company with the right kind of product and the right kind of stock," he said.

In response to a question about the high short position in Charles & Colvard, Cramer said the stock "feels a little Hansen ( HANS)-like" in that shorts "don't believe it can get better."

In response to a question about Tiffany ( TIF), Cramer said he believes Tiffany might be ready to bounce back, and he is "upgrading Tiffany right here, right now."

Water, Water, Isn't Everywhere

A natural resource even more scarce and precious than diamonds is water, said Cramer. That may seem counterintuitive, since 70% of the earth's surface is covered by water. But it costs money to make fresh water potable, and desalinization has yet to become economical on a large scale.

Water consumption in the 20th century has grown at twice the rate of population growth, Cramer said, and over the next 20 years, even the most conservative estimates expect hundreds of billions of dollars will be spent on water infrastructure. Cramer owns Aqua America ( WTR), which operates public water utilities in a number of cities, but Aqua America "doesn't expose you to the massive nature of our water shortage," he said.

A "brilliant way to play the water shortage" is through an ETF, PowerShares Water Resources ( PHO) Cramer said. PHO, which just launched this week, is composed of 64% small-cap stocks, but also contains large companies such as Suez ( SZE) and Veolia Environnement ( VE).

Don't pay up for PHO, though, said Cramer. An ETF is simply a basket of stocks trading as one stock. (Check out this article for more information on this ETF.)

In response to a question about an international water play, Cramer said Suez would be the way to play it.

Cramer also said that Walter Industries' ( WLT) plan to spin off its water business is a great idea.

Pick of the Week

Cramer's "Pick of the Week" is ( CRM). The company makes customer relationship management software that competes with Microsoft ( MSFT), SAP ( SAP) and Oracle ( ORCL).'s advantage is it can deliver its software entirely over the Web, Cramer said.

CRM software was a $3.5 billion market in 2004, and has just 3.2% market share. But the market for Web-based, on-demand CRM software is growing faster than the traditional market, which means can't help but to pick up market share, Cramer said.

The stock isn't cheap, he noted, but it's worth a premium for its growth and for the fact the company has never missed earnings. An added bonus is the fact the stock doesn't get the coverage it deserves on Wall Street, he said. So, "get in now before it becomes the darling of every growth fund in town."

Nucor CEO Chats

Daniel DiMicco, CEO of steelmaker Nucor ( NUE), joined Cramer by telephone. Cramer asked DiMicco if steel imports were threatening Nucor's pricing.

"There's always risk out there in any business," said DiMicco.

"You just boosted the dividend. That to me says you've got confidence," said Cramer.

DiMicco said he is "very, very confident in the future of this company. We've weathered storms before and come through them extremely strong."

Cramer asked about Nucor's interest in Canadian steel producer Dofasco. "I don't want you doing're not going to do any of this takeover game, are you?" asked Cramer. "You're not going to do an overpay, right?"

"We have a very disciplined acquisition strategy," said DiMicco. "We will not overpay." DiMicco said his company has a great track record of acquisitions, and "that won't change."

Cramer summed up the interview saying a recent downgrade of Nucor by J.P. Morgan was arbitrary and wrong, and he believes the stock is headed higher.

Closing Thoughts

Commenting on news after the close, Cramer said Intel's ( INTC) quarterly update was unimpressive.

Cramer also isn't enamored with Electronic Arts' ( ERTS) acquisition of Jamdat Mobile ( JMDT). "Why'd you have to go and do that?" he asked.

Finally, Cramer is now blessing Chesapeake Energy ( CHK) "because they did their gigantic equity offering that I so feared."

Lightning Round


Cramer was bullish on Toyota Motor ( TM), El Paso ( EP), Chesapeake Energy ( CHK), Ingersoll-Rand ( IR), Caterpillar ( CAT), Deckers Outdoor ( DECK), Texas Instruments ( TXN), OraSure Technologies ( OSUR), Bank of America ( BAC), First Marblehead ( FMD), Schering-Plough ( SGP), Genentech ( DNA), American Science & Engineering ( ASEI), Thermo Electron ( TMO), L-3 Communications ( LLL), Radiant Systems ( RADS), Hewlett-Packard ( HPQ), Plum Creek Timber ( PCL), Weyerhaeuser ( WY), Oshkosh Truck ( OSK), ( CRM), Sify ( SIFY) and China Mobile ( CHL).


Cramer was bearish on General Motors ( GM), Olympic Steel ( ZEUS), Pfizer ( PFE), Bristol Myers Squibb ( BMY), Merck ( MRK), H&R Block ( HRB), Flamel Technologies ( FLML), NCR ( NCR), United Natural Foods ( UNFI), Abraxas Petroleum ( ABP), International Paper ( IP), Rambus ( RMBS), Ford ( F), Oracle ( ORCL), EMC ( EMC), Cisco Systems ( CSCO), RPC ( RES), Sun Microsystems ( SUNW), Dell ( DELL), William Lyon Homes ( WLS) and China Techfaith Wireless ( CNTF).

For more of Cramer's commentary during the Lightning Round, click here .

Here's your chance to pick the stock you'd like me to feature on my radio show Dec. 15:
Toll Bros.
Sun Micro

REMEMBER to listen in on Thurday for my take on the stock that wins this poll!
At the time of publication, Cramer was long Anglo American, Aqua America, Intel and Schering-Plough.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

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