Tonight’s Mad Money episode was prerecorded, Cramer is on vacation all week.

We wanted to take a minute to thank everyone for supporting our site. From time to time we will miss a post on a show due to holidays, vacation, or just lack of time to get it done. We will however always try our very best to get Cramer’s show updated as much as possible.

Also, if anyone publishes a stock blog or a business blog and would like to link us and receive a link back please leave your URL under comments. This site is exploding in traffic with over 1200 unique visitors a day. Also, everyone can help grow our site by just telling three friends about the site. We appreciate the support and have a great holiday.

Bullish

Finish Line (FINL), Pike Electric (PEC), Cooper (COO), Cooper Industries (CBE), Genentech (DNA), American Express (AXP), ABB (ABB), FTI Consulting (FCN), Neurocrine Biosciences (NBIX), Boeing (BA), Agilent (A), ATI Technologies (ATI), Waste Management (WMI), Sanofi-Aventis (SNY) and GlaxoSmithKline (GSK).

Bearish

Shuffle Master (SHFL), Martek Biosciences (MATK), Veeco Instruments (VECO), Fidelity National Financial (FNF), NL Industries (NL) and Playboy (PLA).

A viewer emailed Cramer and asked if Hartmarx (HMX) was a better pick then Ralph Lauren (RL). Cramer gave Hartmarx a big thumbs down, saying that not only are Ralph Lauren’s margins better, it makes a better product and is an altogether better company. He said he owned Hartmarx for year and that “HMX never made good on their promise.

Pixelplus (PXPL) Cramer thinks that Qualcomm (QCOM) was a better way to play the picture-phone space.
Gentex (GNTX) excellent way to play the strength in Boeing (BA).

Cramer’s stock pick of the day was Computer Sciences (CSC) Cramer thinks it could make people a lot of money because the company gets a lot of government contracts and does a lot of outsourcing work. Cramer also thinks that CSC is the ultimate takeover play and if and when it happens the company will get a hefty premium. This is because Lockheed Martin (LMT) was supposed to buy the company, but the deal fell apart because CSC wanted more money. And in the months since it fell apart, Computer Sciences has scored some of its biggest contracts ever, including a contract with DuPont (DD) worth $1.6 billion to $2 billion. There’s also a deal in the works with BAE Systems that could be worth over $1.9 billion and its Defense Department orders have risen 20% year-on-year. Plus, General Dynamics (GD) agreed to buy Anteon (ANT), a company similar to CSC; and General Dynamics paid a 30% premium. CSC is trading below $50 and is dead in the water, said Cramer, who advises buying now before it’s too late.

“I don’t know why every mutual fund manager decides on the same stocks. We may as well try and make some money off the fact they do,” Cramer said. He encouraged viewers to buy the stocks that fund managers will pick, because those stocks are guaranteed to grow with massive institutional support. Cramer is bullish on Rackabel Systems (RACK) and he thinks it could be the F5 Networks (FFIV) of 2006. Cramer also thinks that RACK will be the new Network Appliance (NTAP). Cramer mentioned that companies like Yahoo, Electronic Arts, and Deutsche Bank DB use RACK products. Moreover, this small company won’t be taken out by larger players because it has an impenetrable line of patent protection, and its servers are compatible with Intel (INTC). Rackabel posted only $200 million in sales this year, but Cramer thinks it will blow out the numbers in 2006, adding that it has room for double-digit growth.

Cramer was bullish on clay stocks tonight as ways to play body armor. Cramer talked about how Investor’s Business Daily featured Amcol Int (ACO) as a clay play and Cramer thinks the company is great. Cramer likes Ceradyne (CRDN) even better and thinks it’s a buy for a play on clay. Why? Ceradyne posted 112% revenue growth and earning growth of 82% year-on-year in its latest quarter. Most importantly, the stock is up 115% due to the number of large government contracts rolling in because of the company’s body armor division. Our military clearly needs body armor so demand will not be a problem for Ceradyne, Cramer said.

Caller Questions
DHB Ind (DHB) Cramer doesn’t like it because they use nylon fiber instead of ceramics
MEMC Electronics Mat (WFR) Cramer likes this as a play on the silicon shortage a material essential to body armor production.

Cramer is bullish on retail stocks on Friday’s radio show due to the end of the New York transit strike and warmer weather and later then usual Hanukkah. Cramer talked about the moves in Kohl’s (KSS), JC Penny (JCP), and Target (TGT) as evidence that retail stocks are back in favor. Cramer was really bullish on Navteq (NVT) and Under Armour (UARM). Cramer compared UARM to Nike (NKE) in terms of the brand. Even though the company just went public and people are betting against the stock, the products are blowing out the door. Cramer said that it’s only a matter of time before people start buying Under Armour and told listeners to snap it up now before the price shoots higher.

Stump Cramer
WPCS (WPCS) Cramer actually liked this one. He said that the site design and wireless engineering services firm currently flies under the radar; and one positive is that they only deal with government contracts. Will Gabrielski thinks the company can do $40 million to $50 million in sales this year. He did mention a couple of red flags, namely that insiders have been sellers 23 to 3, and that the CEO sold some of the stock.
Cardioteh (CTE) Gabrielski said is a dog. He said it’s interesting because the company is involved in heart disease, a “gigunda” market in this country, but that it doesn’t have a lot of cash so it sells stock to raise money. And that means dilution. Plus, the company trades about 10,000 shares a day, so it will be hard to get in and out without effecting the price if you buy more than 1,000 shares. The EPS number is also going down or staying flat, so you’re probably not going to get a good return, Gabrielski added.
MTR Gaming (MNTG) Gabrielski said buy it.

Lightning Round

Bullish

Cramer was bullish on Whole Foods (WFMI), Canadian National Railway (CNI), ABB (ABB), Foster Wheeler (FWLT), Fluor (FLR) and Capstone Turbine (CPST).

Bearish

Cramer was bearish on CSK Auto (CAO), Bausch & Lomb (BOL), AT&T (T) and Tivo (TIVO).

In his 401(k) fix, Cramer highlighted a viewer email pointing out the risks of government-secured investment vehicles, or GIKs.

He said that these are big commission products that have no place in a retirement portfolio.

Cramer told another listener who wanted to know about after-hours trading to proceed with caution. After-hours traders don’t use limit orders, Cramer said, they just go out and buy. And that inflates the price of the stock.

Electronic Arts (ERTS) Cramer thinks it will see a jump next quarter and he still likes it.
Microsoft (MSFT) and GameStop (GME) Cramer still likes both
Baidu.com (BIDU) Cramer thinks it’s overvalued and not transparent.
Yahoo (YHOO), Netease.com (NTES), and eBay (EBAY) Cramer likes these three as China plays on the net.
Vertex Pharma (VRTX) and Cubist Pharma (CBST) Cramer likes both for plays on the hepatitis drug market.

Bullish
Motorola (MOT), Charles & Colvard (CTHR), Questar (STR), Corning (GLW), Hi-Tech Pharmacal (HITK), AMR (AMR), Premium Standard Farms (PORK), Navteq (NVT), SiRF Technology (SIRF), UPS (UPS), Vertex Pharmaceuticals (VRTX) and Homex (HXM).
Bearish
Chicago Mercantile Exchange (CME), Amazon.com (AMZN), Best Buy (BBY), Smithfield Foods (SFD), FedEx (FDX) and VeriSign (VRSN)

Cramer is bullish on Brazilian No. 2 paper company Votorantim Celulose (VCP) as a play on a bull cycle for paper. Where’s the demand that will propel the cycle? “This sort of demand, it always comes from China,” said Cramer, adding that the country is blowing through 41 million tons of paper a year. “Don’t go American go Brazilian. In Brazil they have that whole darn rainforest to chop down,” Cramer said.

The biggest Brazilian paper company is up 8% this year, while Votorantim Celulose is down because it posted disappointing earnings. But Cramer said the past is the past, and that this is a broken stock, not a broken company. Moreover, Brazil’s economy is growing at a rate that makes the macro environment good for business. It’s impossible to ignore the fact that there’s anti-U.S. sentiment brewing in South America, so Cramer recommends looking at companies in Brazil and Chile. He said to steer clear of Peru and Argentina.