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At the top of his "Mad Money" TV show Tuesday, Jim Cramer reminded viewers of his call on Monday concerning Sherwin-Williams ( SHW - Get Report). Cramer said then that a "bogus lawsuit" against the company regarding lead-based paints was creating a buying opportunity in the stock.

On Tuesday, the judge in the suit denied a request for punitive damages against the company, which should limit the cost of the case to the paint maker, he noted. The stock jumped 7% on the news, closing regular trading Tuesday at $45.55. If the broader market hadn't been down so much Tuesday, Sherwin-Williams' stock would have hit $52, Cramer said.

"It's good to be right," Cramer said.

Cramer then gave some general investment advice to viewers: Read trade publications. Such magazines can be a "great source of 'intel,'" he said.

One such trade publication that offered a good investment idea is PR Week. An article this week spotlighted the small biotech companies helping big pharmaceutical makers develop new drugs. With the release of those new drugs, the biotech companies have a chance to raise their own profiles, the report said.

Rising public awareness plays into the Cramer's first law, he said: The more the public is aware of these companies, the higher their stock prices will go.

"The more they raise their profiles ... the more we should be willing to back up the truck*," he said.

Of course not all the small biotech companies are going to be able to get more exposure -- and higher stock prices -- out of their relationships with big pharmaceutical companies, Cramer noted. The PR Week article focused on how Nektar Therapeutics ( NKTR - Get Report) was left out of a New York Times report on a new drug from Pfizer ( PFE - Get Report), even though Nektar played a key role in developing the product.

"I call that a failure when we want success," Cramer said.

Along those lines, Cramer said two other companies mentioned in the article stand out: Nuvelo and Cambridge Antibody Technology

Nuvelo is in the final stages of developing a blood clot dissolver, Cramer noted. Although that could be a "gigantic catalyst" for the company's stock, it will take a while for that to develop, he acknowledged.

But the company is a great self-promoter, and a sharp drop in the company's shares -- they fell 6% after the company posted a wider fourth-quarter loss on Monday -- could be a "good entry point," Cramer said.

Meanwhile, Cambridge Antibody is working with AstraZeneca ( AZN - Get Report) to develop anti-inflammatory treatments. But that's not all: The company has a partnership with Genzyme to develop some new antibiotics and with Abbott Laboratories ( ABT - Get Report) to develop treatments for rheumatoid arthritis.

"That's a company worth being partnered up with," Cramer said.

But it takes more than just partnerships and hype to make for a good investment, he noted. A company has to have substance too. With $265 million in cash, less than $1 million in debt, Cambridge Antibody has that, he said.

"This is an actual company," he said.

A caller asked whether the partnerships with the smaller biotech companies were enough to bring bigger pharmaceutical companies "back to life." As for Pfizer and Merck ( MRK - Get Report), the answer is no, Cramer said, calling them "yesteryear stocks." But Procter & Gamble ( PG - Get Report), which the caller lumped in with the pharmaceutical makers, now that's a different story, he said.

While P&G has a pharmaceutical arm, it's not a drug making company, he said. P&G's stock is off its 52-week high and is a buy at its current level, he said.

Costco Cometh

Another buy is Costco ( COST - Get Report), Cramer said. The company is " en fuego," taking share from competitors such as BJ's Wholesale Club ( BJ - Get Report), he said.

"They've made themselves into what I consider to be a must-have retailer," he said. "What they're doing ... is genius."

But Costco is not a short-term trading idea, Cramer said. Instead, his investment idea on the company is one for the longer term, i.e., the next 18 months.

Costco is gradually moving into electronics, he noted. Hardlines -- durable goods such as electronics and hardware -- already make up 16% of the company's sales. That's destined to go higher as electronics become more important to the company, he said.

Helping the company's efforts in electronics are a number of factors, Cramer said. Instead of off-brands, the company now sells products from top manufacturers, such as Sony ( SNE - Get Report) and Samsung, he noted. Plus, the company is known for having low prices, which should attract the natural electronics customers -- "geeks" who shop online for the best bargains.

Additionally, the company offers perhaps the best warranty in retail, he said. Best Buy ( BBY - Get Report), Wal-Mart ( WMT - Get Report) and the like charge extra for warranties on electronics goods -- anywhere from 10% to 20% of the product's original cost, he noted. But Costco allows members to return products years after they bought them -- for only the cost of membership, he said.

Consumers shopping for electronics products are going to sign up for new memberships to Costco, Cramer said. And once the company has those consumers as members, it can sell them the rest of the goods it carries, like giant jars of pickles, he said.

"The bottom line is Costco is the next Best Buy," Cramer said. "Once they become the king of electronics, everyone will shop there and nowhere else."

A caller asked how much Costco's move into electronics would affect Best Buy. Cramer said he had promised viewers that Best Buy wouldn't be affected by a similar move into electronics by Wal-Mart.

"I can't assure you about that with Costco," he said, forecasting that the wholesale club operator's move into electronics would hurt Best Buy's price-to-earnings ratio.

"That means the market won't pay up for Best Buy's earnings like they used to," he said.

Vibrant ViroPharma

Cramer headed back to biotech, specifically to ViroPharma ( VPHM). The stock "got trounced" on Tuesday, Cramer said -- it closed regular trading off 9% -- after reporting fourth-quarter earnings. While the company posted "good numbers," Cramer said, the problem it ran into was its guidance, which wasn't as good as expectations.

But that's not something to worry about, Cramer said. The company is playing the "UPOD" game -- under-promise on guidance and overdeliver on earnings, he said.

After the selloff, the company is looking like a good buy, he said. Investors who have shorted some 9% of ViroPharma's shares should clear those positions and get long, he recommended. After closing at $19.35 on Tuesday, the stock is headed for $30, if not $40.

"It's time to consider buying a lot of it," he said.

The reason for Cramer's bullishness: ViroPharma has a drug that could be the "next big thing," he said.

Much of ViroPharma's current business is centered on the drug Vancocin, which combats certain bacterial infections. The company purchased the drug from Eli Lilly ( LLY) for a pittance, some $120 million, Cramer noted. In contrast, the company posted nearly $126 million in sales of the drug last year alone, he said.

Those sales should grow 30% just due to expected price increases, he said. Meanwhile, demand for the drug should grow another 10%, he said. That adds up to 27% to 35% growth, Cramer said, a forecast he called "conservative."

"Vancocin is the reason why ViroPharma is profitable," he said. "And it's why they should keep making more and more money."

But the company is not just a "one-trick drug pony," Cramer said. The company has another drug coming online called Maribavir, which should help prevent infections related to organ transplants, he noted. That drug alone should bring in $500 million in sales, he said.

"I don't think I'm being wildly optimistic," he said.

Responding to "Mad Mail" questions from his audience, Cramer stuck by the buy recommendation he put Monday on Washington Group International ; told another viewer not to be greedy, but to sell shares of Zumiez ( ZUMZ), which is near its 52-week high; and praised a third viewer for asking whether Powerwave Technologies ( PWAV) would be a good way to cash in on the expected growth in cell-phone users in India and China.

"PWAV rocks," Cramer said.

Lightning Round

BullishCramer was bullish on: CVS ( CVS - Get Report); Walgreen ( WAG); Commerce Bancorp ( CBH - Get Report); Principal Financial ( PFG - Get Report); Prudential ( PRU - Get Report); MetLife ( MET - Get Report); Conexant ( CNXT - Get Report); Omnova Solutions ( OMN - Get Report); Allegheny Tech ( ATI - Get Report); Fluor ( FLR - Get Report); Foster Wheeler ( FWLT); ConocoPhillips ( COP - Get Report); Occidental Petroleum ( OXY); Medco Health ( MHS); Apple ( AAPL); JDS Uniphase ( JDSU); NMT Medical ( NMTI) and Evergreen Solar .


Cramer was bearish on: PNC Financial ( PNC); Chicago Bridge & Iron ( CBI); TurboChef Chevron ( CVX); EarthLink ( ELNK); Drew Industries ( DW); Dell ( DELL); Ciena ( CIEN); and American Axle ( AXL).

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

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

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.

At the time of publication, Cramer was long Commerce Bancorp, Foster Wheeler, Occidental Petroleum and Procter & Gamble.

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."

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