Jim Cramer believes in fairy tales now—at least when it comes to the stock market. He saw five companies that represented tales of hope on Wednesday that could lead investors to some serious gains if they follow through. One example of a company generating gains was Facebook, which yet again declared itself the king of the Web when it announced stellar earnings.
"Turnarounds are like fairy tales, they rarely come true. Yet today's action was all about the fairy tale turnarounds that look like they could become reality, and the market cheered them," the "Mad Money" host said.
It is a rare occasion when a company can successfully pull off a turnaround but if they do, the payoff can be huge. The extraordinary rate of failure is the exact reason why Wall Street is littered in failed turnarounds from the past.
Just take one look at tech companies that have been pushed aside because of new technology surrounding computers and handsets. Think about Grant's, Radio Shack, Circuit City or Borders, which have all fallen to the wayside.
"All of these companies have one thing in common: They are hard to kill…I think these can succeed, some more than others, but they all make sense to speculate on, even after they've made pretty big moves," Cramer added.