After looking into the stock, Cramer thinks that Watts Water Technologies is a serious buy because it has a theme and "themes are like tides...they always come back." The theme relates to the shortage of clean water, and Cramer likes this company better than other water stocks such as PNR and WTR, and he says that similar stocks in Europe are played out. According to Cramer, WTS is a best-of-breed stock, is less expensive than its competitors and is in a great growth area.
Related: Eli Hoffmann discusses WTS, PNR, WTR and other water stocks.
Quest Software (NASDAQ:QSFT)
Although RealMoney.com contributor Helene Meisler says that QSFT is "buyable," Cramer points out that the company was involved in the options-backdating scandal, reported a lackluster quarter and has a confusing data business; "On the surface, Quest does not look like a buyable company," he said. "This one is suspicious, and I like suspicious." QSFT's competitors rose, but Cramer thinks that the company will catch up because it is a "broken stock with a base." Cramer says the poor performance was due to problems with closing deals, that Quest has a "pristine gorgeous balance sheet" and is a good takeover target.
Related: Mick Weinstein discusses QSFT's options-backdating investigation.
Sell Block: Hershey (NYSE:HSY), Ingersoll-Rand (NYSE:IR), Contintental Airlines (CAL), Guess? (NYSE:GES). International Flavors&Fragrances (NYSE:IFF)
Cramer began his "Sell Block" segment by discussing the virtue of patience. He had recommended Hershey, although the company fell from $52 to $50 after a bad quarter. However, the stock is up again at $53 and can be sold. A similar thing happened with IR which fell to $35, but after two days, it has nearly reached $37. The moral of the story, according to Cramer, is you can't keep a good stock down, and when a quality company declines, it comes back up. Cramer suggests ringing the register on CAL which has had a good run and is too costly to buy now. He also suggests unloading some Guess? However, he would stay with International Flavors & Fragrances because "it's not done going up."
CEO Interview: Peter McCausland, Airgas (NYSE:ARG)
When Cramer asked him how much of his company was levered to residential real estate, Peter McCausland replied, "We don't have much exposure to housing. Nonresidential construction is important to us, though ... Institutional infrastructure energy investments are all booming now," he went on to say. "This is a secular trend that's probably a five- to seven-year cycle, and we're really hooked into it now, and it's helping us." Cramer suggested Airgas as a good industrial stock for a diversified portfolio.
More: Cramer's latest stock picks, including: Mad Money Recap, Lightening Round, Stop Trading and his Radio Show.
Get Cramer's Picks by email -- it's free and takes only a few seconds to sign up.
Seeking Alpha is not affiliated with CNBC, Jim Cramer or TheStreet.com