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"The oil drillers have bounced back," Jim Cramer told "Mad Money" viewers Friday. That's why he believes it's time to look at Seitel ( SELA), an unlisted stock that trades over the counter, Bulletin Board style, under the ticker SELA.OB.

Typically he doesn't like these stocks because they're dangerous and risky, he said. But Seitel is different because it's a lot bigger than the average Bulletin Board stock. Since its trading volume is decent, a lot of the risks are taken out of the equation, he said.

Plus, the stock is trading this way because it's coming out of bankruptcy, and he believes it will be listed with the Nasdaq this time next year.

Seitel has the largest "multiclient onshore seismic database in North America," he said, with 34,000 square miles of 3-D data and 1.1 million linear miles of 2-D data.

If we're in a drilling boom, he said, oil and gas exploration expenditure should increase by 15% this year.

Plus, the government has forgiven the royalties that drillers might have had to pay, and Cramer said that they won't just sit on this money. Companies will invest in new drilling. To get started, they'll have to spend money on data from Seitel, because they need to know the lay of the land before they drill anywhere.

The company just became profitable again last quarter, and Cramer attributes this to an increase in drilling activity, adding that the company will continue to be a "cash-flow machine."

The company's story is the "anatomy of a good recovery," he said, and it has exceptional operating margins.

Here Come the Robots

Robots seem inescapable, because workers are being replaced by machines, Cramer said, not just by cheap foreign labor.

Manufacturers in America face two problems, he said. The first problem is rising input costs, including rising wages for labor, more expensive raw-energy costs and higher energy prices.

The second problem is that they have limited pricing power, meaning that they can't raise prices too high. So they have to cut costs by becoming more efficient, and Cramer said that means replacing humans with machines.

An industry report said that in 2005, North American companies placed orders for 18,228 robots valued at a total of $1.16 billion. Cramer said that's a 23% unit increase and a 17% dollar increase.

He said that the way to get rich off of industrial automation is to buy Emerson ( EMR), which makes industrial animation systems, and Rockwell Automation ( ROK), which makes controls.

Both companies beat their first-quarter numbers by a mile, and based on their P/E ratios they are inexpensive stocks.

Homework Case Study

Want to think like Cramer so you can buy like him? He took viewers through his homework on the stock Glenayre Technologies ( GEMS) to show how it's done.

He began by checking out a research note from Morgan Stanley that said investors should buy Glenayre because it looks ready to break out. He's not a technical analyst, but he listens to them, and he decided to further investigate the maker of messaging systems and manufacturer of CDs and DVDs.

He said that he hasn't thought about Glenayre in six years because of some legal problems and the fact that telco went through a bear market.

But he believes that telco is back from the dead; and the technical research from Morgan Stanley matched up with his fundamental thesis.

Then he read other research reports on the company, since it's not okay to rely on just one report. He cited one published by an analyst at Morgan Joseph that was bullish on the company, too. The report said the company just made a good acquisition and has a "hammerlock" on CDs for Universal Music.

Plus, its legacy messaging business didn't look bad in the report, and the company's revenues jumped by 54% in 2005.

After reading up on Glenayre, Cramer found that the company has the added advantage of being profitable. And he said that if it sells its messaging business for a lot of cash, it could then focus on its CD and DVD business. This could make the stock more attractive by making it easier for Wall Street to understand, he said.

Glenayre has more cash than debt and a good balance sheet, too, he said.

That's a lot of research, he said, and that's what he believes all investors should do before they put their money on a stock.

G-III's New Seasonless Ticket

Cramer welcomed the chairman and chief executive of G-III Apparel Group ( GIII), Morris Goldfarb, to talk about why the company's earnings suffered.

Goldfarb agreed with analysts that the company got nailed because warm weather kept consumers for buying its winter wear.

But Goldfarb said that the company is diversifying out of just winter-weather clothing. In fashion licensing, the company will work to produce a line for Wal-Mart ( WMT) that will come out multiple times a year, making it seasonless. And it has added Calvin Kline's suit business, too, Goldfarb said.

To view Cramer's interview with Goldfarb, click here .

Lightning Round

Cramer was bullish on Quanex ( NX), Willbros Group ( WG), Fluor ( FLR), Coldwater Creek ( CWTR), Peabody Energy ( BTU), Viisage Technology ( VISG), Marvell ( MRVL), Broadcom ( BRCM), Hansen Natural ( HANS), Apache ( APA), Devon Energy ( DVN), Anadarko Petroleum ( APC), Matria Healthcare ( MATR), Digital Insight ( DGIN), RF Micro Devices ( RFMD), Skyworks Solutions ( SWKS), Honeywell ( HON), Valero ( VLO), JDS Uniphase ( JDSU), Hexcel ( HXL), Directed Electronics ( DEIX), Ruby Tuesday ( RI), Cheesecake Factory ( CAKE) and Headwaters ( HW).

Cramer was bearish on Cogent ( COGT), General Motors ( GM), Tribune ( TRB), Empire Resources ( ERS), Wendy's ( WEN) and Distributed Energy Systems ( DESC).


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