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NEW YORK ( TheStreet) -- "The bears may be in hibernation, but they'll be back in a few days," Jim Cramer warned his "Mad Money" TV show viewers on Monday. He said when the short sellers return to this market, there will be trouble.

Cramer reiterated that he's not a believer in the "panic" theory, but he's also not a believer that "all is well" now that the markets have enjoyed a few up days. He said there are still simply too many unknowns in this market, and none of those unknowns has been solved.

In Europe, Cramer said it's clear that the ban on short selling is working, along with the Europeans stepping in to buy some of the ill-fated bonds that are causing many of the problems. But Cramer expects that the hedge funds and short sellers who make a living punishing bank stocks into oblivion will side-step the new rules in another few days, returning the markets to their volatile state.

Here at home, Cramer said that the U.S. is still dealing with all of the uncertainty surrounding its next round of debt talks, made all the murkier by the beginnings of next year's election cycle.

On the upside, there was the Motorola Mobility ( MMI) deal with Google ( GOOG), a reminder of just how cheap U.S. stocks have gotten, said Cramer. Many stocks are still undervalued, he said, but the markets won't acknowledge that value with the uncertainty looming.

Cramer once again advised investors to take profits where they can and raise cash. He said the the short sellers will be back in another two days and when they get here, there will likely be trouble.

Caution on Momentum Plays

"Investors must have discipline to play with momentum stocks," Cramer told viewers, as he examined the meltdown in Sodastream ( SODA), which lost 34% of its value last Thursday as the company's forecasts imploded.

Cramer first got behind Sodastream at its U.S. IPO last November. However, he started recommending investors take profits in the company in July after shares soared 288% higher on its growing momentum. That warning was spot on last Thursday when the company reported a two-cent-a- share earnings beat on a 38.5% increase in revenues.

Cramer explained that Sodastream's growth was simply not enough for a high-flying momentum stock and the situation was made worse by the company's forward looking guidance which forecast sharply slowing growth.

Making matters worse, Sodastream executives said that they still haven't committed to selling their products at retail giant Costco ( COST), a retailer Cramer said is "too big to ignore." Additionally the company's planned expansion into restaurants was revealed as only including sparkling water, a major disappointment for analysts.

Cramer called Sodastream's forecasts "a complete bust," effectively pulling the rug out from under its shareholders. Cramer said he's surprised that shares were only cut in half given its sharply declining growth. By contrast, Green Mountain Coffee Roasters ( GMCR), makers of the Keurig one-cup coffee brewers, delivered a fabulous quarter with fabulous guidance to boot.

"Sodastream is no Green Mountain," concluded Cramer, which is precisely why investors must use caution when investing in momentum stocks. He urged investors to use any lift in Sodastream to sell their remaining shares.

Oracle Downgrade Wrong

"When analysts fight, you win," Cramer told viewers. Such is the case with tech giant Oracle ( ORCL), a stock which Cramer owns for his charitable trust, Action Alerts PLUS . On Friday, Oracle received a downgrade from one firm, while receiving an upgrade from not one, but two, others. So who's right?

Cramer said the bear's case cited concern with Oracle's hardware strategy after its recent acquisition of Sun Microsystems. The analyst predicted a peak in operating margins as a result as competitors begin taking market share.

But with shares trading down from their highs in the mid-30s to just $26 today, Cramer noted that Oracle now trades at just 11 times earnings, where historically the stock traded closer to 16 times earnings. The stock is clearly cheap, said Cramer, but does it deserve to be?

Cramer said the Oracle still have strong end markets and a good balance sheet, two things he looks for in a tech stock. The company has $29 billion in cash on its books and has done $35 billing in recent acquisitions. The company also grew by 17% during the recession, further showing its strength.

At issue are the company's hardware sales, which Cramer called "problematic." However while sales were down by 40%, unit prices were up by 120% as Oracle repositions its products as premium machines. Moreover, Oracle is still primarily a software company, not a hardware company, so hardware, he said, should not be seen as a major issue for the company.

Cramer concluded that the downgrade of Oracle was wrong, and the company remains one of only a handful of tech stocks Cramer would consider buying for the next few weeks.

Working on the Right Mix

In the "Executive Decision" segment, Cramer spoke with Kieran Gallahue, chairman and CEO of CareFusion ( CFN), a little-known health care company that delivered a two-cent-a-share earnings beat on a 3.7% increase in revenues. CareFusion currently has $1.2 billion in cash and trades at just 12.4 times earnings with a 13% long-term growth rate.

Gallahue explained that CareFusion has market-leading brands in the infusion and medical dispensing markets, but since the company was a spin-off of Cardinal Health ( CAH), the hard part is getting the CareFusion company name to become recognized.

Gallahue went on further to explain that CareFusion is "where you want to be in health care," by having products that not only save on costs but also improve the efficiency and safety of hospital operations. He said since the company's spin-off, it has spun off two businesses and acquired two others as it attempts to rebalance its portfolio of products.

Gallahue said over the next few years, CareFusion will continue to simplify its business, eliminating the parts that don't add value and reinvesting in the areas that matter most.

Cramer said he likes the CareFusion story and the fact that the company is a virtual unknown despite its industry leading products and brands. He said CareFusion is worth a second look.

Lightning Round

Cramer was bullish on Caterpillar ( CAT), Public Storage ( PSA), Dover Corp ( DOV), BJ's Restaurants ( BJRI), Ariad Pharmaceuticals ( ARIA) and Starbucks ( SBUX).

Cramer was bearish on Travelzoo ( TZOO).

Closing Comments

In his "No Huddle Offense" segment, Cramer told viewers that they shouldn't take their cues from the oil futures market, which has been in rapid decline as of late.

Cramer said the Transocean's ( RIG) $1.43 billion bid for the Norweigan Aker Drilling proves that there's still a need for new deepwater rigs to keep drilling for oil. He said that the futures declines are nothing more than hedge funds liquidating their portfolios, and has nothing to do with tepid global demand for more oil.

Cramer once again noted that a vital commodity such as oil shouldn't even be allowed to trade on margin for precisely this reason.

--Written by Scott Rutt in Washington, D.C.

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At the time of publication, Cramer was long Oracle.

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."

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