Cramer Remix: Make a fortune on these 4 stocks

Jim Cramer is seeing a new trend that he has never spotted before. Somehow entire groups of stocks are being consistently undervalued in anticipation of good news or earnings. What the heck is going on? And while some groups are undervalued, there are a few stocks in Cramer's March Madness that could go even higher based on this strange phenomenon.

"This failure to analyze positive moves ahead of the action has become endemic, and it's astonishing to me, given that for almost my entire life, the market has accurately discounted good news beforehand, not afterwards, as it has been doing lately," the "Mad Money" host said.

Cramer has seen many confused money managers who are used to selling on news, because they assume that a stock has hit its high when it announces good news. Instead, these stocks defy common sense and continue to go higher afterward.

The most obvious sector where this is occurring is biotech, where the market doesn't seem to anticipate good news, and then the stock only reacts well after the news is announced.

How about Edwards Lifesciences, which shot up $13 on Monday. This stock was up due to its new heart valve replacement system. Now the stock goes up? Now? Cramer has been raving about it for years! Still, even though the market just clued in to this late, he thinks it is not done, yet.

He has also seen this trend of opportunity outside of biotechs, in stocks like Harman International and Tesla. Elon Musk tweeted out over the weekend that he will have a major software announcement on Thursday that will reduce range anxiety. Cramer anticipates that this stock will run up in anticipation of the announcement, and then embrace everything he has to say.

Read More Cramer: This sector has tons of hidden opportunity

Aaron Harrison #2 of the Kentucky Wildcats goes to the basket as Ryan Boatright #11 of the Connecticut Huskies defends during the NCAA Men's Final Four Championship at AT&T Stadium on April 7, 2014 in Arlington, Texas.
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Aaron Harrison #2 of the Kentucky Wildcats goes to the basket as Ryan Boatright #11 of the Connecticut Huskies defends during the NCAA Men's Final Four Championship at AT&T Stadium on April 7, 2014 in Arlington, Texas.

To honor the time of year when most are making their NCAA tournament bracket selections, Jim Cramer is honoring this tradition by starting his own March Madness—"Mad Money" style!

"We've got our own version of bracketology here on 'Mad Money' that's much more interesting than just picking Kentucky to go all the way," Cramer said.

To begin, the "Mad Money" host selected his top two seeded college basketball teams in each region and paired them with a stock market equivalent, along with a few surprise speculative plays that he thinks you should watch carefully.

Starting with the NCAA southern region, the top two seeds are Duke and Gonzaga University.

In Cramer's opinion Duke is a lot like Disney, with both representing amazing branding with a fabulous head coach.

"I mean this stock got downgraded today, big splash, and it went up anyways—that's almost home court advantage," Cramer added.

Then there is the second seed pick in the southern region, Gonzaga University in Spokane, Washington. Of course Cramer immediately thought of Boeing, a strong company with top leadership and roots in Washington.

"Gonzaga has become a blue chip name in college basketball, with 15 consecutive NCAA appearances, and in the same way, Boeing is absolutely a must-own stock," Cramer said.

Read More Cramer's March Madness: Top southern stock picks

Now that Cramer has ticked off his top winners in the southern region, he unveiled his top picks for the tournament within the east region.

The top dog of the east for Cramer, are the Villanova Wildcats. The secret to the teams' success thus far is its balance, which in many ways reminds him of 3M. This company makes boat loads of products, yet somehow has an impressive ability to balance them across many divisions.

The second seed of the East is the University of Virginia Cavaliers, which reminds Cramer of Virginia-based Orbital ATK. Both UVA and Orbital have recently appeared back on to the scene after several years of being irrelevant.

So while some may spend hours putting together their March Madness brackets, Cramer pointed out that you could make a fortune if half of that time was spent researching stocks like 3M, Orbital ATK, Halyard Health or Chipotle. You may even make a heck of a lot more money that way, too.

Read More Cramer's March Madness: Top eastern stock picks

A trader works on the floor of the New York Stock Exchange.
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A trader works on the floor of the New York Stock Exchange.

Cramer was blown away when seven of nine analysts last week congratulated Mary Dillon the CEO of Ulta Salon for an amazing quarter. What was so strange about this?

Well, Cramer never sees that many analysts congratulate a company. He has his own "congratulations ratio"—a regular report gets no congrats, a surprisingly good one gets a few hosannas, and when it blows it out of the water then the analysts break out the congratulations at a stunning rate.

He knew when so many of them congratulated Dillon, this was a great stock. The CEO took the time to restructure things like customer relations, e-commerce, in-store technology solutions and product innovation.

"I know that many of these initiatives sound pedestrian, but the bottom line is that this is the stuff that 11 percent comps are made of," Cramer said.

So if a company like Ulta can be so successful, the question still remains—how can you beat the S&P 500?

"You know why it's so tough to beat the S&P 500? Because it's always reinventing itself, getting better and better with each change, that's how," Cramer said.

It's the frequent rotation of midcap stocks that have outgrown the index, and deletion of stocks that have gotten too small or have been acquired that help to take it to new highs.

Cramer saw this happen right before his eyes when Equinix, SL Green, HanesBrands and Henry Schein replaced Denbury Resources, Nabors, Avon Products and Carefusion.

And sure enough, this same pattern of old names being sent down to the minor leagues and being replaced by rising stars took the S&P higher on Monday.

"The model works, and that explains why it's so tough to beat the S&P 500, because the darned thing is always upgrading itself in an active, not at all passive fashion, despite its reputation for brainlessness."

In the Lightning Round, Cramer gave his take on a few caller favorite stocks:

H&R Block: "I think the earnings are going to be consistent. I like this year for them when they can return capital."

RR Donnelley & Sons Co: "It caught a downgrade today, and I thought the downgrade was wrong-headed. I like the yield, and I like the growth."

Read MoreLightning Round: The downgrade was wrong on this