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Lear ( LEA), St. Jude Medical ( STJ) and Fortune Brands ( FO) are three value plays that Jim Cramer believes could make people money, he told viewers of his "Mad Money" TV show Thursday.

These three stocks, which are at or near their 52-week low, have been left behind, he said. Value stocks are not cheap stocks, but are instead inexpensive stocks that are too worthwhile to throw back into the water, Cramer said.

These stocks are low risk and high reward, he said.

While growth stocks are all alike, Cramer said value can mean a lot of different things. Every value stock is valuable in its own way, he said.

The first value stock Cramer named was Lear, which is "the last man standing in the auto-supply business," he said. "This is going to be the king of the automotive supply sector."

People have been buying other auto suppliers that are more troubled than Lear, he said, adding that Lear is cheaper than it deserves to be.

"But a stock isn't a good value play just because it has been knocked down," Cramer warned. "It has to have a reason to go up."

The Hook

Cramer believes that Lear, a manufacturer of car interiors, is not a sexy play, but some people would say it possesses an inner beauty, like value stocks usually do.

The name of the game here is consolidation, he said, adding that Lear is in the position to take over other smaller companies because it has the cash to do so. Consolidation is Lear's value.

Lear "can buy these companies on the cheap to create an auto-supply empire," Cramer said.

The bottom line is that Lear is a value stock because it's been in a terrible sector. That sector is now bouncing back, and Lear has been left behind.

"The value in Lear lies in its unique position to consolidate and make itself into a company that makes money -- and hopefully can make you money," Cramer said.

The Line

Too many people believe that value stocks and stocks that have gone down tremendously are synonymous, but this is not true, Cramer said.

The fact that they've been knocked down to unreasonable prices and are bargains might be the one common factor among value stocks, but the reason they've plummeted must be bad, and likewise, they must have a reason to go up, he said.

The next value stock Cramer told viewers about was St. Jude Medical. While Lear was valued as a consolidator, Cramer said he values St. Jude as the one being consolidated.

This maker of heart devices is hovering just above its 52-week low, he said, adding that because it has been underperforming this last year, people don't like the stock.

But value is created when capitalism fails, Cramer said.

St. Jude's rival, Boston Scientific ( BSX), has had problem after problem with its devices. Cramer said that recently the company had to recall a batch of them because of a bad battery.

While these problems are good for St. Jude, especially because it does not have problems with its own gear, Cramer believes that Boston Scientific's problems are also the reason why St. Jude is being battered.

St. Jude's is cheap for a bad reason, Cramer said, and it will come back up because a bigger fish is going to come along and take it over.

The most likely buyer here could be Johnson & Johnson ( JNJ), but it could take a while before this happens, Cramer said.

In addition to having a good risk/reward, he believes that the stock is about as cheap as it can get because there doesn't seem to be anything wrong with the company.

"There's a lot of upside potential for the company," Cramer said. "It has value because it's a great takeover target."

The Sinker

The third value stock is Fortune Brands, he said. The stock, which has gone down 20 straight points since September and is down 16% year over year, is too cheap and deserves a higher multiple, Cramer said.

So why is it down? Because the company's main business is in the home products business, Cramer said. Because the housing market has cooled off, people assume the home products business is not good, he said.

But while it's getting decapitated, Cramer wants investors to understand that most of the faucets and cabinets Fortune Brands manufactures are sold to the remodeling market, not to new homes.

It is down for a bad reason, he said, adding that this stock is not levered to home sales.

Cramer believes that Fortune's stock price will rise because the company's management knows how to treat its shareholders

Fortune Brands is doing a 10-million-share buyback, which keeps the stock from going too low and makes the stock more valuable by increasing the earnings per share, he said.

"The value here is that management knows how to take care of you if you buy the stock," Cramer said. "It should turn into a house of pleasure from a house of pain as people see its great quarter coming."

Cramer welcomed Enbridge ( ENB) CEO Patrick Daniel to the show and asked him to give a sense of how much oil Canada really has at $75 a barrel.

Canada is the largest supplier of crude oil to the U.S., Daniel responded. Although many people believe that there are other crude oil suppliers to the U.S., such as Mexico or Venezuela --or other larger countries, Canada is ahead of the counties that people might believe are No. 1, he said.

"Why don't we know that?" Cramer asked.

"That's probably because we sit here quietly producing as a friendly country," Daniel said. Canada has a great relationship with the U.S., and because there is no conflict or negativity, it doesn't get into the press much, he added.

Cramer asked if the Chinese have taken a stake in Enbridge. Daniel said the Chinese and Enbridge haven't necessarily talked about taking a stake in the company, but Enbridge has been talking to China about building a pipeline to the west coast of Canada and moving crude oil into China.

Cramer told viewers that he liked the stock when he saw it and likes it even more after talking to Daniel. He gave two thumbs up to Enbridge and to Canada.

To view Cramer's interview with Patrick Daniel, click here .

Lightning Round


Cramer was bullish on Qualcomm ( QCOM), Google ( GOOG), Yahoo! ( YHOO), Altria ( MO), First Data ( FDC), Baxter ( BAX), NS Group ( NSS), Consolidated Edison ( ED), TXU ( TXU), Schlumberger ( SLB), International Game Technology ( IGT) and Halliburton ( HAL).


Cramer was bearish on Emdeon ( HLTH), Chipotle Mexican Grill ( CMG), Qiao Xing Universal Telephone ( XING), Click Commerce ( CKCM), Avanir Pharmaceuticals ( AVNR), Northfield Laboratories ( NFLD), Andersons ( ANDE), Oneok ( OKE), Nam Tai Electronics ( NTE), Arris Group ( ARRS), Cisco ( CSCO) Netgear ( NTGR) and Ford ( F).

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

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At the time of publication, Cramer was long Qualcomm, Altria, Yahoo! and Halliburton.

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. 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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