Cramer: This is how you bottle Alibaba's magic

Jim Cramer on Mad Money.
Cramer: Don't pay more than this for Alibaba   

On Wall Street, the Alibaba IPO feels every bit as magical as its exotic namesake as investors clamor for a piece of this exciting story and dream about its hidden riches.

If you're about say "Open sesame" Jim Cramer doesn't want you to get carried away. "I am blessing paying as high as $80 a share, maybe a few dollars more, for this deal," Cramer said. "At that price, it's among the cheapest and the best of e-commerce and the Internet."

However, if shares spike significantly higher than $80, Cramer would be reluctant to pay more. There are plenty of concerns involving this company, and even if you're the biggest bull on the planet, Cramer says you should know that there's another side to the Alibaba story.

Read MoreCramer takes on Alibaba's list of cons

Mad Money
Adam Jeffery | CNBC

Elsewhere in the market, Cramer looked at Rite Aid (RAD) and one other company that he said "screwed-up" big time. Shares of both companies have declined, however, Cramer said only one of the declines presents opportunity. Which one?

Read MoreCramer: Screwed up firm ultimately worthless?

He didn't hold a finger in the air or check the weather vane, but nonetheless Cramer is convinced that winds are shifting for a popular restaurant chain. In fact, he believes four tailwinds are about to converge, offsetting any negatives.

Read MoreCramer blesses somewhat controversial stock

Also, Cramer spoke with Andy Mattes, the CEO of Diebold (DBD), the largest manufacturer and servicer of ATMs in the United States and many other countries. "Here's a company that had been having a rough time, but after bringing in a new CEO in June of last year and then unveiling a major multiyear turnaround strategy roughly 10 months ago, Diebold seems to have really gotten its act together. I think it could have a lot more room to run," Cramer said. "I think it's a very exciting story."

In the Lightning Round Cramer said "this is the perfect environment for owning Wells Fargo (WFC)," and he added DSW (DSW) was a natural to be acquired "if they don't get the stock higher."

In addition, Cramer interviewed the chief of energy company Basic Energy Services (BAS), a small oil services company that provides support for well site activities. Shares of the company have slipped about 20 percent from recent highs, in part because of the decline in oil. "I think this action is creating some real bargains," Cramer said, "and Basic Energy may be one of them."