Mad Money

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Dear Jim: Working on the railway BOOYAH! This one may have dropped below your radar but do not overlook Kansas City Southern . They call themselves the NAFTA railroad. They are part owners of TFM, a Mexican railway. I bought some last June, and they are up 61%. They are a target for buyout by all the Class 1s as they were smart enough to realize that there was a need for a major north-south system. So add in a ROW [Rest of World] play, a Green Day and a buyout target, this one is going to keep moving. How do I know? I did some of my homework by visiting the railway for a week on my vacation in Louisiana and Texas. How is that for a Maine boy doing his homework? --Rusty Rails

Cramer says: “You’re absolutely right … KSU should be in my pantheon of rails.”

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Dear Jim: You brought up on yesterday’s show Darden Restaurants that could be gobbled up by private equity. I was wondering on these same lines if you thought Denny’s could be in the same boat. They are turning around the company, and the stock could easily double with a takeover. What do you think? --Dan

Cramer says: “I did upgrade it from a 'sell' to a 'don’t buy.' " The change of heart comes from a guy named Allen Questrom, who recently joined the board of directors after turning around JC Penney , one of Cramer’s favorite retailers. “How can I pass up on a Wal-Mart move where [Questrom] may kick out Lee Scott and turn around the operation?”

Questions? Comments?