In the last 24 hours Jim Cramer has seen so many stupid decisions, that he couldn't keep quiet anymore. He has to say something, not only because it's driving him crazy but because he wants investors to understand how to do things the right way, especially when it comes to avoiding Chinese stocks.
In Cramer's perspective buying and selling stocks correctly means tedious homework, not just making false assumptions based on reading a few headlines.
"Making snap judgments are a great way to lose money, yet people keep doing it. This market is littered with snap judgments gone awry, and it's beginning to drive me crazy, or at least crazier," the "Mad Money" host said. (Tweet This)
Recently Cramer introduced the Sonny Corleone decree in honor of those who trade S&P 500 futures, flit in and out of stocks based on silly news reports and don't do their homework. Cramer called it this referring to the classic "Godfather Part II" scene when Sonny learned that Michael had joined the Marines in WWII and said, "Did you go to college to get stupid? You are really stupid."
On this same note, Cramer has therefore officially created the Andy Dufresne corollary, in honor of those who trade a company stock before actually listening to the company's conference call to find out the details.
The corollary was selected based on the movie "The Shawshank Redemption" when falsely imprisoned Dufresne speaks to Warden Norton about how he obviously needs a new trial following a man revealing that he had killed Dufresne's wife. The Warden disagreed, stating "how can you be so obtuse?" Yet, the Warden was so obtuse that Andy asked "is it deliberate?"
Cramer also noted that based on the stupidity he has seen recently, he will not be recommending any Chinese stocks because the market is way too hot.
"They have opened 14 million new accounts since the year began, and it's just steaming over there. It's parabolic, I don't want to touch anything."
On Wednesday, we learned that the Blue Cross Blue Shield healthcare plan CareFirst was hacked. The data breach impacted approximately 1.1 million customers, and it was the third major health insurer this year to announce a hack.
This made Cramer think of FireEye, a large online security company that provides real time threat protection to major enterprises and governments. It is also a well-known forensics specialist, meaning it will piece the puzzle together on what happened after a hack happens.
In fact, FireEye was the company that detected the data breach for CareFirst. The stock has been a bit volatile since it came public a little over a year and a half ago. And after getting hit hard, sinking below $25 in October, it has been on the rebound ever since.
Does FireEye anticipate that the cybersecurity threat to America will continue to grow in the future? Cramer sat down with FireEye's CEO David DeWalt to hear more.
"As the world's geopolitical climate changes and all this super-power chess going on, we are finding that America is a bit vulnerable to these attacks, and one of those variabilities is embarrassment—releasing information—and so there are a lot of these threats like that," DeWalt said.
Read MoreWatch the FireEye interview here
Cramer is seeing some amazing action in the world of healthcare. A massive consolidation is happening, and he expects that it is just getting started.
On Friday morning, the market learned that CVS purchased Omnicare in a $12.7 billion transaction. Omnicare is a company that provides medical care to senior citizens, typically in assisted living facilities. Cramer expects that as baby boomers get older, this niche business will continue to grow.
In 2006 CVS acquired pharmacy benefit manager Caremark, and then removed tobacco out of its stores. This was done in order to transform itself into CVS Health, which is less of a drugstore chain and more focused on healthcare.
Likewise, Rite-Aid similarly purchased pharmacy benefit manager Envision Pharmaceutical Services for $2 billion.
And now Cramer wants Walgreens Boots Alliance to step up to the plate, too, and either buy a company that helps to control drug costs or merge with one. Why the heck couldn't its formal partner McKesson merge with it?
Every time one of these deals happens, the healthcare group moves. And that is exactly why Cramer says you must own one of these stocks.
"Right now healthcare is the single best group in town," he said. (Tweet This)
Back in September, eBay announced that it would be breaking itself up by spinning off its fast-growing PayPal division into a separate company. Though the exact date of the spin-off has not yet been released, eBay said it expected it to occur within the third quarter.
So, in preparation for eBay's big spin-off, Cramer wanted to dive in and prepare investors for action.
"Even though I am not at all enthusiastic about eBay's slow-growing core online marketplace business, I adore PayPal's online payments business, and I think it will absolutely be worth owning once it is spun off as an independent company," the "Mad Money" host said. (Tweet This)
In the Lightning Round, Cramer gave his take on a few caller-favorite stocks:
PDL Biopharma: "I see that stock has been a one-way ticket down, and I don't like that I see it yields at nine percent. That's a red flag. Let me do more work, because otherwise maybe that's something we should be in."
Lannett Company: "When I'm thinking about the kinds of consolidating stocks in healthcare, I am thinking about that one. I just did some work on it, and I like your call."