Jim Cramer: American Ecology, Stericycle, Disney, Ruth Chris

U.S. government regulations make hazardous waste-disposal companies such as American Ecology (ECOL) Corp. and Stericycle Inc. good investments, Jim Cramer said on his ``Mad Money'' television program on CNBC.

American Ecology, which specializes in radioactive disposal, benefits from government rules requiring nuclear plants, science labs, factories and other facilities to hire a disposal company to discard toxic byproducts, Cramer said.

``The government says you don't have a choice. You have to pay a company like American Ecology to get rid of your radioactive and hazardous waste,'' said Cramer, a market commentator and former hedge-fund manager. ``Any business with that kind of government sponsorship, that's a company I like.''

Cramer said his favorite medical-waste stock is Stericycle. The company is the only disposer of medical waste with a national presence, Cramer said. Stericycle (SRCL)'s long-term agreements with hospitals and doctors offices also will protect the company from declines in the medical disposal business, Cramer said.

Cramer said Bed Bath & Beyond Inc. (BBBY) shares were in ``no man's land,'' and investors should not buy or sell. He recommended buying the stock if it drops to $37, or sell if it reaches $43. He said recent stock buybacks show management believes the price is too low.

Cramer also said he liked shares of Ruth's Chris Steak House Inc. before interviewing Chief Executive Officer Craig Miller during the program.

Cramer recommended Walt Disney Co. (DIS), Omniture Inc., Melco PBL Entertainment and Sears Holdings Co. during the show's ``Lightning Round'' segment.

He told viewers to avoid New York Community Bancorp Inc. (NYCB), Sirius Satellite Radio Inc. and Conexant Systems Inc.

Cramer said he owns Sears for his charitable trust.

To contact the reporter on this story: Adam Satariano in San Francisco at Asatariano1@bloomberg.net.

To contact the editor responsible for this story: Jeff Ward at jward@bloomberg.net.

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