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The one thing better than picking winning stocks is being able to piggyback on people who pick them, Jim Cramer told viewers of his "Mad Money" TV show Thursday.

Financier Carl Icahn, who recently made a great call by getting into Lear ( LEA), previously and "perfectly" made money with Time Warner ( TWX), Cramer said.

"When you catch a guy like Icahn who has been on a winning streak, people must piggyback off of him," he said.

Right now Icahn is buying WCI Communities ( WCI). However, before buying WCI, a good piggybacker should first understand the way Icahn is thinking, Cramer said. (See what else Icahn is buying by checking out his portfolio on Stockpickr, a TheStreet.com affiliate.)

WCI is a homebuilder that owns 86% of its properties and creates upscale communities. But the real reason Icahn likes it is because WCI is selling below its book value, Cramer explained.

WCI is sitting on a big pile of real estate, and Cramer believes that the stock should ultimately be valued more than its properties.

Although some might believe it dangerous to invest in Florida real estate, Cramer said that Lennar ( LEN) has recently profited from Florida real estate.

Cramer advised viewers not to make a move with WCI here. The first rule when piggybacking is to be patient, he said.

WCI is almost a $22 stock, whereas Icahn bought the stock nearly 4 points lower, Cramer said.

Therefore, when piggybacking, people must wait for a financier such as Icahn to take a position, try to understand the methodology and thesis behind buying such a stock and then wait patiently for the "hoopla" surrounding the stock to die down before getting in, he said.

Multiple Subjectivities

Sometimes the most difficult thing about the stock market is that it's subjective, Cramer told viewers.

Case in point: After having one of the single best years Cramer's ever seen, Genentech ( DNA) is lower today that it was 14 months ago.

Because the stock was expecting 30% growth but actually reported 70% growth, he regards Genentech's current stock price as illustrating the height of the market's subjectivity and irrationality.

Earnings and what people are willing to pay for the earnings -- also known as the stock's multiple -- are the two things that make stocks go up and down, Cramer explained.

Because Genentech reported earnings that were way better than expected, he said the problem with the stock must be its multiple, or what the Street was willing to pay for its earnings.

Genentech came down with a case of multiple contraction, Cramer said, which is why it's cheaper today. However, he believes this is all about to change.

There are three things that decide a company's multiple: earnings risk, inflation risk and political risk, Cramer said. Because earnings are clearly not a problem at Genentech, he discounted the first risk and moved on to the latter two.

On the political end, Cramer said investors were nervous when the Democrats took over Congress because they thought the government would go after Genentech and crater its sales because it's a health care company.

It's now apparent, however, that the Democrats' taking over shouldn't have any negative consequences for Genentech, he said.

Also, count out inflation risk because it affects future earnings and has already peaked, Cramer said. Therefore, he believes that DNA stock is "ready to go back to where it was a year and two months ago."

Cramer called Genentech a best-of-breed biotech stock, with a drug pipeline that's "looking good." Taking a conservative stance, Cramer predicted that the stock would go to $104; taking a bull case, he said it would go to $140.

Genentech closed Thursday's regular session at $87.53.

Sell Block

In his "Sell Block" segment, Cramer said it's time for viewers to celebrate profits.

After recommending Guess? ( GES) on Oct. 9 and reaping 38.7% in gains, he said it was time to sell the stock.

Cramer also advised ringing the register with XM Satellite Radio ( XMSR) because he believes "it has run out of steam" and has no more upside potential.

Further, although he said Interpublic Group of Companies ( IPG) could go higher, Cramer said it's time to lock in the stock's profit and sell it.

Lastly, he said it's time to say goodbye to Deere ( DE), a stock he's "liked for a long time."

Even though Deere could go up another 8 points, Cramer said, he doesn't believe it is worth staying in it until then because it's a $100-stock and people have already profited significantly from it.

In his "Mad Mail" segment, Cramer told a mailer that although Investor's Business Daily is saying it's OK to buy tech, he doesn't agree.

" Investor's Business Daily is seeing one thing; I am seeing another," he said. "I like IBD very much but think they are wrong here."

When a viewer asked Cramer who is selling Apple ( AAPL), he said the shorts are pressing down the stock.

He also pointed out that the stock should not have bounced 8 points off the iPhone, and in addition, Apple gave negative guidance, which might be driving the stock down.

Nevertheless, Cramer said he believes it is a buying opportunity and advised the viewer to rebuild a position in Apple as it goes down.

In his "Sudden Death" round, Cramer was bullish on McDermott ( MDR) and bearish on Panera Bread ( PNRA).

Lightning Round

Cramer was bullish on Denny's ( DENN), Allergan ( AGN), Mentor ( MNT), MasterCard ( MA), Las Vegas Sands ( LVS), Wynn ( WYNN), Immucor ( BLUD), Global Sources ( GSOL), Duke Energy ( DUK) and Genentech ( DNA).

Cramer was bearish on Ship Finance International ( SFL), Valero Energy ( VLO), MGM Mirage ( MGM) and MGI Pharma ( MOGN).

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


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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."

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