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Roped In

Cramer told "Mad Money" viewers Wednesday that they should think about buying Roper Industries ( ROP), a diversified industrial company that serves a set of niche markets by making products including water meters, pumps and measuring instruments.

These products are important and business is sound, he said. But it's not the only reason to buy Roper.

The company was added to the S&P MidCap 400. Cramer said that he and his research team have taken a look at the last 19 stocks to be added to this index, going all the way back to October 2003.

They found that since being added, the stocks for the most part have had a sustained, gradual move upward. Moreover, they have produced an average 34.66% return.

There have been three exceptions: Pacific Sunwear ( PSUN), Regis ( RGS) and Southwestern Energy ( SWN). But Cramer said that 16 stocks up and three down is still a good trend.

Cramer says that nobody wants to own large-cap stocks these days, despite media noises to the contrary, because mid-caps represent growth.

Turning back to Roper, Cramer said that he likes the fact that the company doesn't try to expand its target market, but just captures more share in the markets they currently serve.

It's cheaper for a company to sell more of a product it already sells than to design and market a whole slate of new products, he said.

Plus, he said that Roper has a great radio frequency identification (RFID) company.

For a pure play on water, he told a caller that he would rather go with Aqua America ( WTR), which he owns for his ActionAlerts PLUS charitable trust.

Drug abuse is bad, but we can make some money off it, Cramer said. And for those who have been paying attention to the news, they know that one of the most abused prescription drugs is OxyContin.

There is an "alarming trend of abuse among young people," and he said this has an effect on the market.

Cramer said there's a new drug on the way that should be the next OxyContin. And unlike OxyContin, it's made by a publicly traded company that he has ordained the new "best-of-breed pain pill company."

The stock is Penwest Pharmaceuticals ( PPCO), which makes OxyMorphone in addition to some other good proprietary drugs.

The expectations for this drug are low, but Cramer believes that it's a potential blockbuster based on recent studies that showed patients experienced a significant reduction in pain compared with patients who took placebos.

And he said that patients who had developed a tolerance to other opiate-based pain killers responded well to OxyMorphone.

Maybe You're Diversified

"Diversification is the only free lunch," Cramer said. So viewers called him to play "Am I Diversified?," a segment during which they tell him which stocks they own and he says whether the portfolio's diversified enough to help protect them against different sectors and stocks moving lower.

The first caller said he owned TD Ameritrade Holding ( AMTD), Seagate Technology ( STX), Southwest Water ( SWWC), Valero Energy ( VLO) and Acadia Pharmaceuticals ( ACAD).

Cramer blessed this portfolio as diversified because it has a tech company, a finance stock, a refiner, a utility and a drug company. But he said he would swap out of Southwest Water and buy Aqua America.

Cramer did not bless a portfolio with PepsiCo ( PEP), Sasol ( SSL), ViaSat ( VSAT), Pain Therapeutics ( PTIE) and Chesapeake Energy ( CHK), saying that Sasol and Chesapeake are both energy companies.

The next caller also had overlap because he owned two energy plays, Halliburton ( HAL) and ConocoPhillips ( COP).

The caller also had UnitedHealth Group ( UNH), Wells Fargo ( WFC) and Amgen ( AMGN).

Cramer said he would sell ConocoPhillips and keep Halliburton, a stock that he owns for ActionAlerts PLUS.

The final caller had two mineral plays, Goldcorp ( GG) and Ivanhoe Mines ( IVN).

Cramer said he would sell Ivanhoe and pick up a health care play in order to round out a portfolio that also included Kubota ( KUB), Imperial Sugar ( IPSU) and Brocade Communications ( BRCD).

He finished off the show with emails from viewers, including one from a woman who wanted to know if Oakley ( OO) was a buy because of a potential short squeeze.

Cramer said that he likes Oakley -- which he featured positively on Tuesday's show -- because he believes the stock will move higher after the company restates earnings, not because 25% of the shares trading are short.

He also said that Archer Daniels Midland ( ADM) is his ethanol pick, but warned that the stock has move higher and that it might not be a good idea to buy at these levels.

Lightning Round

Cramer was bullish on Headwaters ( HW), KFx ( KFX), Radiant Systems ( RADS), Websense ( WBSN), Symantec ( SYMC), Radvision ( RVSN), Sanofi-Aventis ( SNY), Novartis ( NVS), Matsushita Electric Industrial ( MC), Rackable Systems ( RACK), Sony ( SNE), Western Digital ( WDC), Seagate Technology ( STX), Amgen ( AMGN), XM Satellite Radio ( XMSR), Ciena ( CIEN), JDSU ( JDSU), Conexant Systems ( CNXT), Bookham ( BKHM), Finisar ( FNSR), PepsiCo ( PEP), Qualcomm ( QCOM), Level 3 Communications ( LVLT), Dynamic Materials ( BOOM), United Technologies ( UTX), Broadcom ( BRCM), Marvell ( MRVL)and Apple ( AAPL).

Cramer was bearish on Google ( GOOG), Secure Computing ( SCUR)and Brigham Exploration ( BEXP).

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


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 Aqua America, Halliburton, TD Ameritrade, UnitedHealth Group and Qualcomm.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on Mad Money are his own and do not reflect the opinions of TheStreet.com 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 TheStreet.com, 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 TheStreet.com 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, TheStreet.com 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 TheStreet.com, 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. 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 TheStreet.com, 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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