Click here for an archive of Cramer's "Mad Money" recaps.

If the proposed economic stimulus package gets approved, consumers will be spending some of their tax rebates at retailers, Cramer told viewers of his "Mad Money" TV show on Thursday.

Retail stocks trade off of their same-store sales numbers, he explained, and with the comparisons from last year so low, retailers can't help but benefit.

In this regard, Cramer likes such retailers as Guess ( GES), J. Crew ( JCG) and Lowe's ( LOW).

He notes that Liz Claiborne ( LIZ) and Jones Apparel ( JNY) should also do well.

And he's still a fan of Costco ( COST), TJ Maxx ( TJX) and even Urban Outfitters ( URBN) at these levels.

Cramer also thinks restaurant chains may benefit from the stimulus. He says Darden ( DRI), proprietors of the Red Lobster and Olive Garden chains, should see a boost in sales.

There are also some unlikely benefactors from stimulus that investors should consider. For instance, homebuilder Toll Brothers ( TOL) will benefit from the higher conforming mortgage loan limit of $729,750 that Fannie Mae, Freddie Mac and the FHA will support under the stimulus plan. And that makes the stock now a buy, Cramer says.

He's even willing to do an about-face on Thornburg Mortgage ( TMA), but only recommends the F class preferred shares.

Also on the about-face list is Bear Stearns ( BSC), which Cramer says is now too valuable to not be considered a takeover target.

In Defense of CSX's CEO

Cramer is starting his own one-man crusade to stand behind Michael Ward, CEO of CSX ( CSX).

With the Federal Reserve now cutting rates, railroads are the place to be, Cramer says. That's why he doesn't understand why two activist investors -- TCI and 3G -- are clamoring for Ward's removal.

"Ward's done an amazing job," Cramer pointed out. CSX is up 254% in five years, more than any other rail stock. "This man knows how to run a railroad," he noted.

Ward said he also doesn't understand the calls for his ouster. CSX, he notes, is in the top 10 of the S&P 500, has doubled its dividend and raised its buyback program. The company is also investing $1.7 billion into the business for long-term growth. Ward said he's proud of what CSX delivers to its shareholders.

Cramer reiterated his buy on CSX and encouraged its shareholders to vote in favor of Michael Ward.

Trading Strategies

"Discipline always trumps conviction," Cramer reminded viewers, as he detailed some of his trading strategies. "Buying stocks is not marrying them," he said, adding it's OK to like a stock at a certain price and not like it at a higher price.

That's the case with agriculture stocks, Cramer said. Companies like Monsanto ( MON) and John Deere ( DE) have both rallied in recent days, and Cramer said investors need to take some profits. "You don't have a profit until you sell," Cramer stressed.

The same strategy applies to stocks like Apple ( AAPL) and MasterCard ( MA), Cramer noted. Both stocks had huge runs and had investors taken profits on the way up, they wouldn't have been hurt by the big declines.

Cramer then revisited his "Stress Index," a list of homebuilders and mortgage lenders. The index was at 100 when he created it on Aug. 3, but fell to 47 percent two weeks ago when Cramer began recommending buying stocks on the list.

Had investors followed this strategy, he noted, investors would've benefited from the recent rally and netted a 10 percentage-point gain.

A Market for Damaged Autos

Cramer welcomed Willis Johnson, founder of auto remarketer Copart ( CPRT), to the show to discuss the company's business model.

Johnson said Copart is not a salvage company, but instead an Internet auctioneer of damaged and repossessed autos. The company takes autos that would be classified as "totaled" here in the U.S., and provides a way for them to be shipped to other parts of the world where they can be repaired for less.

Cramer said this is a company whose stock is going up, not down.

A Final Word

Finally, Cramer told viewers he still likes Microsoft ( MSFT), Hewlett-Packard ( HPQ) and EMC ( EMC). EMC is a stock he owns for his Action Alerts PLUS portfolio.

Lightning Round

Cramer was bullish on Vasco Data Security ( VDSI), Covance ( CVD), Parexel International ( PRXL), State Street ( STT), Spectra Energy ( SE), Horsehead Holding ( ZINC), Cisco Systems ( CSCO) and Juniper Networks ( JNPR)

Cramer was bearish on Melco PBL Entertainment ( MPEL), Las Vegas Sands ( LVS), Albany Molecular Research ( AMRI), International Game Technology ( IGT), Southwest Airlines ( LUV) and Brocade Communications ( BRCD)

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 EMC.

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.

If you liked this article you might like

Qualcomm Nets Wireless Licenses in India

Qualcomm Nets Wireless Licenses in India

SEC Probes Other Deals: Report

SEC Probes Other Deals: Report

Cramer's 'Mad Money' Follow-Up: April 15

Cramer's 'Mad Money' Follow-Up: April 15

Cramer's 'Mad Money' Follow-Up: April 14

Cramer's 'Mad Money' Follow-Up: April 14

Cramer's 'Mad Money' Follow-Up: March 25

Cramer's 'Mad Money' Follow-Up: March 25