Mad Money

Companies actively unlocking shareholder value: Cramer

Market wants growth: Cramer
VIDEO9:1609:16
Market wants growth: Cramer

(Click for video linked to a searchable transcript of this Mad Money segment)

Jim Cramer always scours the market looking for companies that are actively working to create value.

And one of the methods that he likes best involves strategic transformation; that is, a thoughtful change that allows a company to grow in new ways and therefore prosper.

"There are a cavalcade of companies like that," Cramer noted. "These are companies that have changed stripes to generate better returns for investors."

Some of them follow:

Green Mountain Coffee Roasters: Cramer says with Coke's newly acquired 10% stake in the company, Green Mountain has transformed itself overnight. Through the new partnership, Green Mountain will develop a cold soda maker similar to its Keurig single-serve hot coffee maker. "The product could be an absolute game changer," Cramer said.

Adrianna Williams | The Image Bank | Getty Images

American Airlines: The merger between American with US Airways is the catalyst here. "Not only does the merger take out a competitor it takes out capacity," Cramer said. "The industry is transformed and the company is investable." On January 29, Cramer said American Airlines was among his favorite ways to play the theme.

AOL: Cramer says AOL has actively transformed itself from an old-style Internet company into a dynamic online network of original videos and shows that could rival the traditional broadcast and cable companies. "Once, a non-competitor, now AOL is now capable of rivaling Google and Yahoo on video. AOL was absolutely transformed by CEO Tim Armstrong," Cramer said.

Facebook: Although Facebook may not seem much different to you, Jim Cramer says it's very different. "Eighteen months ago Facebook was a slowing desktop billboard company. Today it's transformed into a company that's effectively leveraging the mobile Internet with a desirable interface for both advertisers and users."

Disney: Disney CEO Bob Iger transformed Disney through a series of strategic content acquisitions which includes the Marvel superheroes and the Star Wars franchise. Although there's no fail-proof formula to make a hit, the "Mad Money" host says Iger has made it all the more likely with this transformation.

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Although the specifics in each of the examples outlined above are unique to the company and the industry, over the long-term the outcome for shareholders is very much the same.

The transformations have unlocked shareholder value.

Therefore Cramer suggests parsing through the market and looking for companies that are in early stages of transformations that could generate big opportunity over time.

"This market wants growth," Cramer reminded, "it will reward growth," and a transformation is a good way to generate growth.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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