On Monday’s show, Cramer stated that even companies that get beaten down, like Dow component Caterpillar, can become attractive buys based on their stock’s weakness and on their long-term investment story. “Nobody really cares right now whether business is strong or not,” Cramer said. “They just feel these stocks got too hammered.” Those bullish comments along with better than expected second quarter results announced Tuesday morning helped lift Caterpillar’s stock 7.7%. 

The “Cramer Effect” was clearly the force behind H.H. Gregg’s 7.9% gain on Tuesday. The stock which typically sees trading volumes averaging 450k shares, saw over 2.9 million shares traded on Tuesday. Of course the reason for the big spike in trading activity was Cramer’s recommending the seventh largest appliance seller as a buy. Cramer believes that the fall of Circuit City has benefited H.H. Gregg. With the housing markets finally hitting a bottom, H.H. Gregg could be a place where consumers will go to buy needed items. The company also has plans to expand from 111 stores in the Midwest to 400 stores nationwide. With a multiple of only 14 and a long-term growth rate of 17.6%, Cramer believes the stock is cheap. 

Other Cramer bullish stock picks: 

BHP Billiton (BHP: 81.76 0.00%) gained 4.3% – After Cramer applauded the market trend of buying industrial stocks ahead of the economic upturn

Murphy Oil (MUR: 61.74 0.00%) rose 1.3% – “It is dirt cheap. I want to own this thing, and I want to own the group.”

China Unicom (CHU: 17.47 0.00%) jumped 2.8% – “Yeah, I think that China Unicom is the way that they are going to sell the iphone in China… I have been buying China Unicom hand over fist.”