The averages have had a huge run recently, and while this wasn't reflected in the market on Wednesday, Jim Cramer pointed out that people have made fortunes owning individual stocks in the past few years from the bright ideas that they have had.
"I always say good investment ideas are often right in our faces, on the dinner table or the living room or in the mall, which means the gains are there to be had as long as you're actually looking for them," the "Mad Money" host said.
Cramer heard a boatload of these fortune-brewing ideas on Wednesday when he attended CNBC's Delivering Alpha conference. He highlighted a few of the amazing ideas that he heard, so that investors could understand how easily good investment ideas can be found.
Cramer interviewed Jeff Smith, the CEO of the activist fund Starboard Value, at Delivering Alpha and he presented a new way to judge Macy's. Instead of looking at the company based on the earnings per share—Cramer's way—he looked at it as a real estate play and suggested that this $72 stock could be worth $125.
"I doubt I'll ever think of Macy's the same way again. It's not just the place where I bought my shoes, it's a collection of assets that might be worth much more than where the stock is currently trading," Cramer said.
Cramer was elated when he heard the news that Celgene paid $232 a share for Receptos on Wednesday. Receptos has been a long-time favorite of Cramer, as he started recommending it 130 points ago.
But the people who should really thank Celgene? The shareholders, Cramer said.
Celgene CEO Bob Hugin obviously recognized that his company's stock would soar when he picked up Receptos for $7.2 billion.
"After all it is not often that a company shells out that much money and then sees its own stock go up almost an equal amount in value because it is such a fantastic acquisition," the "Mad Money" host said.
What drew Cramer to Receptos initially, about a year ago when the stock traded at $35, was its drug Ozanimod. This drug had the potential to treat several conditions within one formulation. So, while Celgene was doing extremely well, it was perceived as being too dependent on its drug Revlimid. As a result, Cramer thinks this this was a match made in heaven.
Now that Janet Yellen reiterated on Wednesday that investors should expect a rate hike later this year, Cramer is wondering what to do with high-quality packaged food names with a strong dividend, like General Mills.
General Mills has a large array of brands spanning from Cheerios, Chex, Pillsbury, Progresso, Yoplait and Betty Crocker to its natural and organic business, which includes the recently acquired Annie's.
On Tuesday General Mills hosted its annual investor day, where it outlined its plans to grow its business, including launching Yoplait in China and to dramatically expand its natural and organic product base dramatically.
To hear more on its plans for growth, Cramer spoke with General Mills Chairman and CEO Ken Powell.
"Frankly, the pace of change in these consumer markets today is faster than I've ever seen it," Powell said.
While Cramer was at CNBC's Delivering Alpha conference on Wednesday morning, he had the chance to speak with big-name investors Nelson Peltz and Bill Ackman on the concept of a platform company, or special purpose acquisition company (SPAC).
Basically, an SPAC takes a big pile of money, and then grows through a series of acquisitions. One of those SPACs is Platform Specialty Products Corp, which is a specialty chemical roll-up that is 20 percent owned by Ackman.
When Cramer last spoke to CEO Dan Leever in March, he made a bold call that his stock would trade to $200 one day. Since then, the stock has remained basically flat at $26. However, the "Mad Money" host remains a big believer in its management team.
Are there enough acquisition prospects out there to catapult the stock higher? Cramer sat down with Leever to find out.
"There are hundreds of billions of dollars in assets out there that fit our business model…to coatings, to water treatment. There is broad cross section of industries that we can play in," Leever said.
Cramer is a huge fan of measuring a stock based on its fundamental analysis. Meaning, understanding the earnings and valuations of a particular company before adding the stock to his portfolio.
However, the "Mad Money" host also thinks that valuable information can be garnered from technical analysis of charts. That is why for Chart Week this week, he turned to Carolyn Boroden for her interpretation of where the market is headed based on what is in the charts.
Boroden is a technician who runs FibonacciQueen.com and is one of Cramer's colleagues at RealMoney.com. Leonardo Bonacci, who went by the nickname of Fibonacci, was an Italian mathematician from the Middle Ages who found that a series of key ratios tend to repeat themselves over and over again in nature.
Boroden applied these key ratios based on past security swings in order to figure out if the could change its trajectory soon. To begin she emphasized the importance of Fibonacci price extensions, which are retracements beyond 100 percent. She uses those levels to determine where potential support and resistance levels are for the index.
Boroden recommended watching the 2110 to 2115 level of the S&P for key market activity. With the S&P closing at 2107 on Wednesday, that means investors could get ready for a bumpy road very soon.
"If we can push through it, then the odds are higher for the extensions on the upside to be reached in the 2159 and 2190 area," Boroden said.
In the Lightning Round, Cramer gave his take on a few caller favorite stocks:
Nisource Inc: "I've been a fan, but remember, with interest rates going higher, no one is going to buy this one so you are going to have to be able to say don't buy right now until the yield goes higher."
Clean Energy Fuels Corp: "I do not like the stock. I like the concept. The concept seemed great to me, which is natural gas fueling stations. But it has not taken off, and the country is not ready for it, yet."