A Sign of the TimesThe Sunday New York Times business section had a feature on all the people jumping on the ethanol bandwagon and investing in the technology, including Richard Branson and Bill Gates, Jim Cramer told viewers of his "Mad Money" TV show Monday. But the Times article then made itself useless by "wringing its hands" about how the regular guy probably can't make any money in ethanol anytime soon, he said. Cramer believes that the article gives up too soon, citing the fact that he recommended Archer Daniels Midland ( ADM) as a play on ethanol-based plastics. When he recommended it the stock was near $23. Now it's up to $35. It's time to get out of Archer Daniels Midland and into The Andersons ( ANDE), a "smaller, faster, cheaper company," and "the punch line that The New York Times left out of its article." Before he would say why the company is a buy, he delivered the following caveats: It's a riskier play because the stock's volume is on the low side and lower than the stocks that he normally recommends. That means it can be bid up very quickly. Cramer said that investors must use limit orders and proceed with caution. He also said investors should do their homework and wait a few days before buying the stock. Not only is The Andersons in the ethanol business, but the company also operates grain elevators, Cramer said. And as ethanol production increases, we'll need more places to store corn. The company is also set to build the largest ethanol plant east of the Mississippi; it has a great railroad business, and Cramer believes that there's a bull market in railroads. It's time to pimp over to Australia and buy some Macquarie Bank, an Australian financial services play that Cramer said is better to buy overseas than in the U.S.
A Few PrecautionsEven though Cramer said he likes The Andersons and Macquarie, he was adamant that viewers not buy them immediately upon his recommendation. "If you don't want to get ripped to pieces swimming with the sharks in after hours," Cramer said to pay close attention to his rules about what to actually do with his recommendations. First, he doesn't endorse after-hours trading. "That's committing financial suicide," he said. And that's because there are no market makers after hours, so it's just you vs. the professional traders who will crush you. No one moves faster than the pros, he said, and you'll end up paying "significantly more." For Cramer's blessing on a buy, first you have to do the homework. That means going to Yahoo! Finance or any other Web site where you can plug in a stock symbol and get an overview of the stock. Then you have to go to the company's Web site to check it out, as well as read articles with in-depth reporting on the company.
BullishCramer was bullish on Cephalon ( CEPH), Vasco Data Security International ( VDSI), MannKind ( MNKD), Applied Micro Circuits ( AMCC), Ciena ( CIEN), Bookham ( BKHM), JDSU ( JDSU), Finisar ( FNSR), Mindspeed ( MSPD), MRV Communications ( MRVC), General Dynamics ( GD), Commerce Bancorp ( CBH), Intel ( INTC), Neoware ( NWRE), Las Vegas Sands ( LVS), Cisco ( CSCO)CSCO, Tellabs ( TLAB), Valero ( VLO), Intermagnetics General ( IMGC), Acadia Pharmaceuticals ( ACAD) and Texas Roadhouse ( TXRH).
BearishCramer was bearish on ViroPharma ( VPHM), New York Community Bancorp ( NYB), Wynn Resorts ( WYNN), Allscripts Healthcare Solutions ( MDRX), Lucent ( LU), Sirius Satellite Radio ( SIRI) and Tim Hortons ( THI). For more of Cramer's insights during the most recent Lightning Round,
Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.