Cramer Remix: This stock has begun to turn around

Jim Cramer thinks that investors are confused. Why the heck would bad news overseas mean bad news for the U.S.? Especially with some stocks that were previously considered Wall Street dead meat making a big turnaround.

The confusion showed in the market Monday when it opened low because of weakness in Japan and ultimately closed with stocks little moved.

The upside to the current political economy, is that the U.S. has so many companies that do not have much overseas economic exposure. This includes the healthcare cohort that has been bleeding with takeover activity lately and makes them a natural safe haven from Japan, Europe and China.

"I think one of the biggest mistakes being made by money managers this year is the failure of parallel thinking," added Cramer.

Often managers are triggered to buy or sell the S&P based on overseas events. But Cramer sees that there are plenty of people overseas who are just bursting with money and want to get out of their faltering currencies and into a stable market. They want to invest in the U.S.

So there is no need to panic over turmoil overseas. It is not necessarily a tragedy for our market.

Read MoreCramer: Their weakness is our strength

A woman wearing Lululemon Athletica clothing leads a yoga class in Miami Beach, Florida
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A woman wearing Lululemon Athletica clothing leads a yoga class in Miami Beach, Florida

Welcome back, Merger Monday! One stock that Cramer thinks could have upside with a little merger activity, is CST Brands. This company was spun off by Valero last year.

"I think it would make a ton of sense for Marathon Petroleum to acquire CST…I think the fundamentals are excellent, and the stock deserves to go higher even without a deal," said Cramer.

This stock has a network of nearly 1,900 gas stations in the U.S. and Canada concentrated in the southwest and central regions of the country. In a takeover situation, based on what Marathon Pete paid for Hess Retail and what ETP paid for Susser, Cramer thinks that CST would be worth as much as $4.8 billion at enterprise value. That translates into a $53.40 share price, or 26 percent premium to where the stock is currently trading. Certainly no pocket change!

Though Cramer added that it makes a ton of sense for Marathon Petroleum to buy a company like CST, even if CST doesn't go for the offer, the fundamentals are still strong enough that this stock is worth owning.

Likewise, this could also be the time for a turnaround for a stock like Lululemon. This yoga inspired athletic apparel chain used to be the Wall Street market darling but was left for dead after product malfunctions that included see-through exercise pants and departure of the CEO, Christine Day.

To make matters worse, Lululemon's founder made a series of insensitive and bizarre comments ranging from women's bodies to child labor.

Since that time, Lululemon has slowly but surely begun to turn itself around. Though it's not back to being a darling, it's certainly not broken anymore, Cramer says.

In fact, Cramer thinks that the stock is so inexpensive that it might be worth buying and is willing to bet that this stock is ready to play catch up.

A clinical technician holds a syringe and a vial of Allergan Botox, produced by Allergan.
Jason Alden | Bloomberg | Getty Images
A clinical technician holds a syringe and a vial of Allergan Botox, produced by Allergan.

Last Friday, the "Mad Money" host did not recommend the stock Globalstar. This is a satellite phone company that is lobbying the Federal Communications Commission (FCC) for permission to use their electromagnetic spectrum to create a proprietary Wi-Fi service.

While Cramer initially did recommend this stock in July, he changed his opinion after hedge fund Kerrisdale Capital's decision to short the stock, claiming that it was headed to $0. It also attempted to block the FCC ruling in favor of Globalstar. Since that time, the stock has plummeted 11 percent in six months.

That is why the "Mad Money" host welcomed founder and CEO of Globalstar, Jay Monroe, to share his view on the company for investors to make a final call on Globalstar.

"It is polarizing because of Kerrisdale. Prior to that I think people understood pretty well that the spectrum was needed throughout the country… to me, when people understood that, and they understood how it was going to be used, it was relatively speaking, smooth sailing. When Kerrisdale introduced a lot of negative chatter to the discussion, taking positions that were technically unsound but that were nonetheless, loud, we ended up in the situation that we are in," Monroe said.

According to Kerrisdale's experts, the issue of Wi-Fi traffic is not as important as Globalstar has made it sound. While Globalstar would like to create access points for low-powered Wi-Fi, how in the world would they pay for this?

"It is almost free. If you think about how a network like this gets built out, it's almost viral in nature. The partner that we would have … is going to have access to your house already or access to the street already. As a result, they will build the network out," added Monroe.

Read More Cramer: Globalstar CEO defends his controversial stock

On the flip side, a company like Allergan is now reaping the benefits of great management. So much, that they were able to create some waves in the market on Merger Monday. Good management trickles down to a good investment. That is why Jim Cramer knows that plenty of money can be made when there is a terrific CEO who insists on good value.

Sometimes that value is brought out by hard work. Sometimes by ingenuity, technology and inventiveness. Sometimes it is all of these things combined, plus strong bargaining power.

"With this $219 Actavis bid, Allergan's David Pyott has accomplished all of those things for shareholders," Cramer said.

On Monday Actavis announced it had agreed to pay $66 billion, or $219 a share, for Botox maker Allergan. This is a landmark price, considering it was just trading at $28 six years ago.

"It's been a fabulous run, and Pyott deserves wall of fame like plaudits for what he has done for his shareholders during his amazing tenure at Allergan," Cramer said.

Read MoreCramer tips hat to Allergan

As for the Lightning Round, Cramer continued to give his opinion to caller favorites wondering if they were turnaround stocks:

J.C. Penney: "We do not recommend J.C. Penney. We do not think it is going to be a great stock, we feel it is going to just muddle through. That's not what I want out of a retailer. I think Wal-Mart is going to do better."

Mobileye: "I do think that Mobileye could have a good quarter. But this is a stock that really had a remarkable ride, and there seems to be profit taking everywhere. I think the quarter is going to be fine."

Read MoreLightning Round: Wal-Mart is better than this