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The Canadians are coming!

Investors should take note of TD Bank's ( TD) acquisition of Commerce Bancorp ( CBH) because more Canadian buys of U.S. banks are on the way, Jim Cramer told viewers of his "Mad Money" TV show Tuesday.

Thanks to a strong Canadian dollar and great stock value, Canadian banks are primed to absorb American regional banks, which lately have been viewed as small institutions with little room for growth.

Unlike Chinese or Arab investors with the cash to buy American companies, Canadians are "warm and lovable," meaning the U.S. government will not intervene in Canadian acquisitions of U.S. companies.

Furthermore, if big Canadian banks want exposure to the American Northeast, they need to acquire multiple banks. "I see more than just Toronto Dominion getting in the game," Cramer said. Cramer compared Northeast regional banks with Frito-Lay products, saying Canadian banks "can't eat just one."

With the Canadian dollar up 12% against the U.S. dollar since last year, Canadian banks can get more for their money by acquiring American banks, Cramer said. Additionally, Canadian banks' stocks are up, even adjusting for the strength of the Canadian dollar. For example, Canadian Imperial is up 31% and Bank of Nova Scotia is up 23%.

Some claim that that TD's payment of 2.8 times book value for Commerce was "silly generous." Cramer told viewers that that view was completely wrong, and he expects very high markups in acquisitions of several more banks, including: National City ( NCC), KeyCorp ( KEY), New York Community Bancorp ( NYB), Comerica ( CMA), Hudson City Bank ( HCBK) HCBK, M&T ( MTB), BB&T ( BBT) and Fifth Third Bancorp ( FITB).

Misguided Markdown at CVS

The market held a fire sale on CVS Caremark ( CVS) today. The decline in CVS was negative pin action from disappointing earnings by Walgreen ( WAG).

Cramer called the market "dumb" for lumping CVS and Walgreen together, especially when CVS hedged against what hurt Walgreen this quarter. Walgreen's problems are internal to Walgreen and have nothing to do with CVS' performance, Cramer said.

Walgreen blamed low earnings on lowered drug reimbursement rates. Coupled with cost problems stemming from high salaries for their workers, the reduced revenues caused the stock's slump.

CVS, on the other hand, saw the reduction in reimbursement rates before it happened, buying Care Mark, a company that makes reimbursement payments. In other words, CVS bought a company that benefits from the flood of generic drugs that hurt Walgreen's revenues.

In light of CVS' foresight and Walgreen's inability to perceive an obvious development in the drug market, Cramer considered transferring "best of breed" status for pharmacy retail to CVS.

Looking for comScore Score

Cramer is looking for another stock that will perform as well as Aecom Technology ( ACM), which has shown substantial gains since he recommended it on May 15.

ComScore ( SCOR) bears a resemblance to Aecom in that its IPO was relatively unnoticed and received little institutional support, Cramer said.

ComScore measures raw data on usage, and behavioral and transactional trends on the Web. Cramer compared it with Nielsen and Arbitron ( ARB), companies that measures television and radio consumer behavior.

Viewers might think that a company like comScore is superfluous because Omniture ( OMTR) already measures Web sites' traffic and user behavior.

The difference, Cramer said, is in internal vs. external numbers. ComScore provides information about other Web sites, instructing companies as to where they should advertise and the online behaviors of their target consumers.

ComScore is smaller than Nielson and Arbitron and is situated in the fastest growing consumer research market: the Internet. Moreover, Nielsen could be in a position to simply buy comScore, Cramer said.

Because comScore is already profitable, has great earnings visibility, a very high retention rate and great growth, it's in a position to become a "natural monopoly" and become the next Aecom. Additionally, Credit Suisse and Deutsche Bank recently gave it a buy rating.

Perry Ellis CEO Speaks to Cramer

Cramer welcomed Perry Ellis ( PERY) CEO George Feldenkreis to the show. He emphasized the strength of Penguin, an American brand that Perry Ellis has revitalized by placing it in Niemen, Saks and Nordstrom's. Feldenkreis anticipates that in five years Perry Ellis will grow from a $40 million to a $200 million brand.

Speaking about Perry Ellis' expansion into Asian markets, Feldenkreis mentioned limited penetration in Vietnam, and licensing agreements specific to Taiwan and Korea. The company is currently hoping to announce licensing agreements for China and India, which would substantially expand Perry Ellis' consumer base.

'Sell Block'

In a brief "Sell Block" segment, Cramer advised viewers to sell Baidu ( BIDU).

Lightning Round

Cramer was bullish on Bucyrus ( BUCY), Caterpillar ( CAT), Vasco Data Security ( VDSI), Oracle ( ORCL) Google ( GOOG), Norsk Hydro ( NHY), BHP Billiton ( BHP), Mosaic ( MOS), Sociedad Química y Minera de Chile ( SQM), National Oilwell Varco ( NOV), Nastech ( NSTK), Agrium ( AGU) Apple ( AAPL), Research In Motion ( RIMM), Transocean ( RIG) and Cytyc ( CYTC).

Cramer was bearish on ViroPharma ( VPHM), Xinhua Finance Media ( XFML), Terra Nitrogen ( TNH), Sirius ( SIRI), Schlumberger ( SLB), Wynn ( WYNN) and Force Protection ( FRPT).

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

For more of Cramer's insights during the Lightning Round, click here .
At the time of publication, Cramer was long Caterpillar and CVS Caremark.

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. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on 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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