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A Consumer Staple You’ve Never Heard of

Cramer highlighted a defensive stock on Monday's Mad Money straight from the aisles of the local drugstore that many investors have probably never even heard of: Chattem .

Recognize the name? How about the brands? Chattem is the company behind drugstore staples like Icy Hot, Gold Bond, Selsun Blue, Pamprin, Garlique and Herpecin-L. These over-the-counter healthcare products, toiletries and dietary supplements take up huge amounts of aisle space at the drug store, which is exactly how Cramer measures this company's success. "It's as recession resistant as they come," he said.

Chattem has caught a double since Cramer last recommended it in April 2006. How does it perform with such a disparate pastiche of brands? Well, the company is a master of picking up the scraps of neglected junk brands and turning them around, Cramer said.

The business model is heavy on the ad spending because advertising is what boosts brands. Chattem also produces many of its brands in-house, manufacturing the products themselves to raise profit margins. Finally, it takes the brands it supports and extends the product lines to increase sales. Nine brand extensions are planned for this year alone. The model has worked flawlessly so far, Cramer said, and it should continue.

The real catalyst that could send Chattem even higher is an acquisition. Normally, it would be tough to value the acquisitions of Chattem's brands. But last month brought a big clue when Adams Respiratory – maker of Mucinex – got taken out by Reckitt Benckiser at a 37% premium. If that same sales multiple is applied to Chattem, the $75 stock could go to $84 with ease, Cramer said.

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

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