Today Cramer talked about what is and isn’t “disappointing.” Cramer doesn’t care about earnings numbers he pays attention to conference calls. A word to focus on is “demand.” Demand being great and the quarter doesn’t look right Cramer can overlook the headline number. Demand not being good shows the company for what it will be. “Challenging” is a word that has alarm bells ringing. A couple examples of this are:

• Johnson & Johnson (JNJ) – Cites pressures from the FDA and class-action lawyers for why thing are “challenging” in the pharmaceutical environment.
• DuPont (DD) – The rising costs of raw materials leaves DD with a “challenge.”

Both stocks are near their 52-week lows.
Others discussed in the same breath were:

• Texas instruments (TXN) – Trouble meeting demand.
• Motorola (MOT) – Also having problems meeting demand.

The tech selloff last week may have you weary of the sector, but Cramer says, “now is your chance.”
Cramer was positive on Qualcomm (QCOMM), Broadcom (BRCM), and JDSU. Bears cite $700 heating bills as a reason for the tech slowdown. Cramer brushes them off with Best Buy (BBY) as an example. At $49, with the demand in gadgets, he goes in the opposite direction as the bears.

Danger Zone comes in on its regular Tuesday spot. Cramer reverses his stand on Newmont Mining (NEM). Cramer has long called this his best-of-breed for gold. A horrid quarter coupled with him believing that (NEM) can’t produce the amount of gold it thought it could, has Cramer doing an about face. Cramer said take a look at Anglo American (AAUK) or BHP Billiton (BHP). Rio Tinto (RTP) also was mentioned. If you are in Hecla Mining (HL) swap it for Goldcorp (GG).

Calls and Mail finished the show. Summed up:

• Sirenza Microdevices (SMDI) – The sector is on fire but being near its 52-week high, you should watch out.
• Altria (MO) – Use a possible court loss to buy more if the stock turns down.
• BJ Services (BJS) – Inexpensive at 20times earnings. Nabors (NBR) is a cheaper driller though at 13times earnings.
• Koor Industries (KOR) – Only one point off of 52-week low, so possibly a ” ‘mon back.”
• Japanese market covered with Matsushita Electric Industial (MC), Toyota (TM), and Kyocera (KYO).
• Medicis Pharmaceutical (MRX) – Hold even with the dip in the stock.
• Hansen Natural (HANS) – Cramer likes this momentum-oriented stock.
• Biadu.com (BIDU) – Sell because this stock is going lower according to Cramer.
• HealthExtras (HLEX) – Take some off of the table due to the stock being up big since Cramer recommended it.
• Morgan Stanley Eastern Europe Fund (RNE) – A good way to play Eastern Europe. Cramer thinks that MWD has a history of being able to invest well overseas.

Bullish
Intel (INTC), Cemex (CX), Google (GOOG), Seagate Technology (STX), Dow Chemical (DOW), Citi Trends (CTRN), Williams Companies (WMB), Votorantim (VCP), Samsung (SSNLF), Apple (AAPL), XM Satellite Radio (XMSR), Advanced Micro Devices (AMD), Coldwater Creek (CWTR), UPS (UPS) and Conexant Systems (CNXT).
Bearish
aQuantive (AQNT), Western Digital (WDC), PolyMedica (PLMD), 3Com (COMS), Plug Power (PLUG), Mittal Steel (MT), LG.Philip (LPL), Sirius Satellite (SIRI) and Emcore (EMKR).

Cramer also welcomed Clarence Otis, chairman and CEO of Darden Restaurants (DRI), whose Olive Garden and Red Lobster chains just reported strong same-store sales growth. Otis said that people are still spending at restaurants, even though consumer confidence numbers reflect that they’re worried about their wallets.

Cramer was out with bullish comments on Peasron (PSO). Cramer thinks that PSO could be an excellent takeover play because Marjorie Scardino is the CEO, said Cramer, adding that the turnaround at Pearson masterminded by this “tough talking Texan” could make you some mad money. The company owns the Financial Times and part of The Economist, so no competing financial publication is going to praise this turnaround, said Cramer. Cramer thinks it is also bullish that the company will not get much media attention. Pearson has three units, Cramer said — financial news, publishing and education. One of the reasons Cramer believes the company has started to shine is because Scardino shed its more “eclectic” entertainment assets, including television, amusement park and video-game businesses and used the cash to buy companies that complement its core businesses. Now the company has become the market leader in education, which makes up more than 60% of the company’s sales and comprises textbooks and testing, Cramer said. The margins are still below those of its competitors’, but he said this means there’s room for improvement. Cramer sees double-digit earnings growth and improved margins in the company’s future.

Cramer’s stock of the week is Oregon Steel Mills (OS), despite the fact that steel has been an unsound business to invest in. Cramer mentioned that there is a world bull market in steel right now. Cramer also mentioned that the steel industry is experiencing some consolidation right now and that means that OS could be a potential takeover play. Moreover, in previous markets when steel started looking strong, too many mills would open and flood the market, he said. But now Cramer believes that more consolidation and more mills closing are keeping supply down and prices from falling. The bull market in steel, plus takeover speculation, plus the fact that the company builds pipelines for oil and gas makes this stock a triple buy for Cramer.