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Cramer Remix: What Ellen Kullman should have done

On Monday, investors learned that Trian, the hedge fund run by activist Nelson Peltz, has invested about $2.5 billion in General Electric. And before anyone dismisses or downplays the stake Trian has taken in this industrial — Jim Cramer wants you to think again.

In fact, back when Cramer was writing "Get Rich Carefully," he found that Peltz was the only activist that investors could piggyback from and consistently beat the market after he announced his investments.

"That matters because I think the logical conclusion you might reach about this investment otherwise is that it doesn't mean anything: Peltz can't effect change. He won't be able to move a stock that has been stuck at these prices forever. I think that is wrong," the "Mad Money" host said.

Ultimately, he calculated that if GE CEO Jeff Immelt cut and boost leverage to buy back as much as 40 percent of the company's shares, that could yield $2.20 per share in earnings power in three years. Meaning, he could double in the stock.

Cramer's praise for Peltz also applied to DuPont's CEO Ellen Kullman announcing her retirement on Monday. Perhaps if she had listened to Trian, she could have brought out additional value for DuPont.

"Especially given that the stock was up huge pending her departure, as investors think Peltz's plan to split up the company will get a fairer hearing," Cramer said,

Read More Cramer: Peltz could double GE's stock

Nelson Peltz at Delivering Alpha 2015 in New York on July 15, 2015.
David A. Grogan | CNBC
Nelson Peltz at Delivering Alpha 2015 in New York on July 15, 2015.

It was only a few weeks ago that it seemed impossible to Cramer for this market to stage a miraculous turnaround. The Fed, oil, China and Volkswagen all seemed like a dark clouds over stocks.

"Suddenly, good news is busting out all over, and we can't not talk about them. I have been bearish for a while now, but if the facts change, I have to change with them," the "Mad Money" host said.

Monday brought a plethora of good news, and the Dow jumped triple digits in response. Stocks rallied when it appeared that the Federal Reserve was actually on hold for the rest of the year, oil bounced back and things started getting better in China. Additionally, the issues plaguing Volkswagen seemed contained, which allowed other auto companies to benefit.

Just a few weeks ago, it seemed completely ridiculous to suggest that these issues could be contained, yet, that is exactly what happened.

"For the last week I have been saying that when everyone's bearish, it is time to rethink your viewpoint. That is exactly what I am doing," Cramer said.

Read More Cramer: Why I'm rethinking my view on the market

However, not all stocks were rosy sunshine on Monday. Mallinckrodt took a serious beating, down almost 7 percent in a single session. What the heck happened to this once beloved pharmaceutical company?

"I think the pain in this stock is a microcosm for many of the things this hateful market has come to despise," Cramer said.

Some of the decline is because of Mallinckrodt's structure as a roll-up, which has fallen out of favor with Wall Street, and some of it is because of the drug price controversy in the past few weeks. However, Cramer thinks the main issue with this company stems from an ill-fated acquisition Mallinckrodt made last year, when it purchased $5.9 billion purchase of Questcor Pharmaceuticals.

Sand and gravel deposits plant.
Markus Matzel | Ulstein bild | Getty Images
Sand and gravel deposits plant.

The next time you hear someone call for a supercycle, Cramer wants you to run — not walk — straight for the exit. A little over a year ago, Cramer warned that sand plays were in danger. He wasn't just worried that the price of crude had collapsed; he was worried that the word "supercycle" would take this group down the tubes.

Commodity sand stocks refer to companies that provide sand for hydraulic fracturing, the drilling method that has been essential to unlock oil and gas reserves in the U.S. Cramer's fear was that sand stocks such as Emerge Energy Services, U.S. Silica and Hi-Crush Partners had skyrocketed immensely, and would not be able to withstand the cut in oil prices that has plagued black crude in the past year.

What really alarmed Cramer was when an analyst from Morgan Stanley came out and called for a fracking sand supercycle. His opinion was that there was a prolonged period of production growth and stronger pricing for sand plays as part of a secular shift in the oil industry.

"The next time you hear some expert call for a commodity supercycle, remember the annihilation of these fracking sand stocks, and do some selling," Cramer said. (Tweet this)

Read MoreCramer: When you hear this word—run far away!

Another biotech stock that has been subject to heat over the recent political firestorm issue of drug pricing, is TG Therapeutics, part of the development stage biotechs that have been hit the hardest.

The reason why this group has been hit the hardest, is because their valuation is entirely dependent on how much money they can potentially make from drugs that could be released years in the future. Thus, with investor worries that Congress might impose price controls, there are worries about the future.

TG Therapeutics is a developer of monoclonal antibody based treatment for various types of cancer. Its pipeline includes two blood cancer drugs that could have fantastic results for patients. The company recently received FDA approval to run a phase 3 trial on both of these drugs together as a treatment for chronic lymphocytic leukemia.

So, while its stock has been hammered, the company has some positive developments happening. To learn more, Cramer spoke with the company's chairman and CEO, Mike Weiss.

"The key to the company, our belief, is that getting drugs to market is one thing, but pricing is going to be an issue…And again, obviously we are not running a charity, we are here to sell drugs and sell it at a reasonable price, and I think we can get there without price gouging. I know there are a lot of issues about that right now," Weiss said.

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

United Continental Holdings: "I like Oscar Munoz [CEO]...I think it's good. I think that group has bottomed here and liked it. I know some analysts want to say negative things. Not me!"

Twitter: "I wanted Jack Dorsey [new CEO] I think Dorsey is going to do a good job. I was kind of hoping he would resign from Square and let someone else handle that. But the changes are coming fast and furious at Twitter and he is liked by the staff and he cares about those who Tweet."

Read MoreLightning Round: What Dorsey will do for Twitter