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Cramer Remix: I can't believe this stock is a buy

Did the entire market come down with a case of amnesia, and forget all about when the miners, industrials and biotechs roared on Monday? Judging by the action on the averages on Tuesday, Jim Cramer suspects that could be the case.

"Last night I tried to be skeptical, if not downright critical, about the rally, suggesting it could easily be repealed as the week went on. I didn't know it would be repealed immediately," the "Mad Money" host said.

That's because Cramer was not expecting that investors would be dealing with a Chinese currency devaluation, which makes China's goods cheaper to export and U.S. goods more expensive to sell there.

The devaluation shocked Cramer so much that he decided to review what happened, so that investors can be prepared for what is next.

First, China is totally desperate. It is clear to Cramer that the Chinese Communist government is trying to put everyone to work while also trying to stop widespread corruption in business and politics. It tried to fix the issue by exports, but then Europe fell apart. Then it tried infrastructure, but now it seems as if everything it needed has been built.

Cramer interprets the devaluation as a sign that things are much worse in China than even the bears realize. After all, why else would it take such extreme measures?

"That means we have more risk to the entire world's growth than we thought," Cramer said. (Tweet This)

As a result, there are two important things that Cramer wants investors to keep in mind. First, none of the companies with sinking stocks on Tuesday have been a part of the bull market recently. That means it is time to rotate back to dividend stocks that yield 3 to 5 percent, like General Mills and PepsiCo. Domestic stocks with no Chinese exposure can go higher, especially Campbell Soup Company, which Cramer couldn't believe is a buy right now.

Read MoreCramer: China has launched a trade war on the US

An investor looking at stock prices in Haikou, China, August 11, 2015.
Reuters
An investor looking at stock prices in Haikou, China, August 11, 2015.

Once again, crude's pattern of the last few weeks played out on Tuesday, with the averages crushed and the price of oil plummeting down to a six-year low. And while Monday saw some major rallies in the oil-and-gas complex, most of those gains were wiped away Tuesday.

Cramer turned to the charts to find out where the future of large energy players is headed. He spoke with Bob Lang, a technician and founder of ExplosiveOptions.net, as well as Cramer's colleague at RealMoney.com. Lang took a close look at the beaten down energy group, particularly with the big dogs like Exxon Mobil, Chevron, EOG Resources and Occidental Petroleum.

The first thing to note is that all of these stocks are currently trading much lower than where they were the last time crude tested the $43 level in March. However, Lang thinks that while crude is getting crushed right now, the technicals actually paint a brighter picture than you would expect.

This is because Lang believes that oil does not have much more of a downside left. Lately, the price of crude has hit levels that have not been seen since the Great Recession in 2009. In fact, the charts indicate that it is currently at insanely overbought levels, which suggest that oil is due for a bounce.

Read MoreCramer: Why oil is in better shape than you think

And while some investors are worried about the dropping price of black gold, there are others who want to know how they can profit from rallies in a foreign stock market when the dollar is so strong.

That was why Cramer took a look at WisdomTree Investments, the industry leader in fundamentally weighted and actively managed ETFs. Essentially, it is the company that has figured out how to invest overseas without getting clobbered by a strong dollar.

WisdomTree's stock is up 61 percent this year, despite the downturn in the market on Tuesday. The company also reported recently and delivered a fantastic quarter, where the street learned that its assets under management in U.S. ETFs increased by 72 percent year over year.

With trouble in China, can it keep crushing the competition? To find out, Cramer spoke with WisdomTree Investments CEO Jonathan Steinberg.

"Most people don't realize, when they buy international equities they are exposed to the currency. It's not currency neutral, they're long the currency. So now the market, the ETF industry, is giving you a choice," Steinberg said.

Google Alphabet
Pascal Rossignol | Reuters

Cramer didn't think it was totally insane that Google rallied 4 percent on Tuesday following its announcement that it will create a new holding company called Alphabet.

However, considering the beating that the averages took on Tuesday, Cramer was impressed that it was able to withstand the massive amounts of selling and enjoy the move.

"But I think a far more apt analogue for Alphabet is the recent transformation of Amazon," Cramer said. (Tweet This)

Why? Because Amazon is known as the rapidly growing online retailer that spends almost all of its money building out new infrastructure to dominate shopping needs. At one point, Wall Street started to turn its nose up at Amazon in the belief that it would never turn a profit.

Similarly, Google has also had a reputation for reckless spending on totally unprofitable projects that have managed to outshine its lucrative and fast-paced business. At least, until its new chief financial officer Ruth Porat arrived on the scene. Porat was formerly the CFO at Morgan Stanley and had a reputation of being a stickler to control costs.

The solution? Break them out, just like Amazon did with its Web services division.

Cramer thinks this will allow the huge and fast core business to shine within Alphabet. This way, investors can clearly understand what Google is and why it is worth so much more than anyone thought.

Read MoreCramer: Alphabet will skyrocket, thanks to Amazon

After a horrendous day on the market, Cramer decided to circle back to stocks that will continue to work regardless of what happens in China or what the Fed does with interest rates.

One of those companies is Charles River Labs, a contract research organization that provides universities and biopharma businesses with what they need to discover new drugs and conduct early stage clinical trials. On example includes the right kind of lab rats and mice needed for safety testing.

So, regardless of the amazing drugs that pharma companies develop, they all need someone like Charles River in order to get through the early stages of FDA approval.

To find out more about where the company is headed this year, Cramer spoke with Charles River Laboratories chairman and CEO Jim Foster.

"We have deals with the majority of all the drug companies. They are not all multiyear. We like them to be different structures for different-sized companies," Foster said.

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

Aqua America Inc: "It's a very consistent stock. It doesn't have upside, frankly, and it really has not worked out the way that I first thought it would. But it's not bad. And as far as I'm concerned you can own it. But 25 percent of your portfolio? No, we don't like anything to be more than 20 percent so you're going to have to trim that back a little. I know your [cost] basis is probably low. Pay the taxes, and cut it down."

Medical Properties Trust Inc: "I think this segment has now gotten too hard for me. I know it yields 7.5 percent, but that is a a sign of a red flag now. We are going to have to go with Ventas, okay. We are just going with Deb Cafaro [Ventas CEO]. This one's too difficult for me. I've liked it in the past, but it's too hard."

Read MoreLightning Round: This group is too hard to play