Mad Money

Cramer Remix: A dark cloud over this stock

Cramer Remix: A dark cloud over this stock

Jim Cramer always abides by one simple rule. When there are account irregularities, you do not ask questions, you do not make excuses, you do not wait for clarity — you just sell.

"Accounting irregularities equals sell. That has been one of my cardinal rules for decades now, and if you want to know why, you only need to look at Valeant," the "Mad Money" host said.

A dark cloud has hung over Valeant ever since speculation began that it may use unorthodox methods to sell drugs. Cramer traced the initial charge of accounting irregularities to Andrew Left, of Citron Research.

Cramer has often been criticized for his rule, especially those that kept investors out of companies that were legitimate but tarred unfairly with accounting charges.

"It is true. I have been too cautious at times and have missed opportunities," Cramer said.

However, the pain in Valeant should be a constant reminder of how right his rule is. This stock has been a nightmare that simply could have been avoided by following one straightforward principle.

Read More Cramer: This signal means sell, sell, sell now

Bill Ackman at the New York Stock Exchange.
Brendan McDermid | Reuters

Tuesday scored a clear market win for the bulls. Cramer saw the perfect confluence of events that allowed stocks to soar higher.

The first event that took place hinged on two pieces of data that came out of China. Investors learned that things were even worse than many thought when manufacturing numbers matched the lowest level in seven years.

More importantly, the shockingly dovish speech from New York Fed President Bill Dudley made the bulls happy. It was also significant that this commentary occurred shortly before the release of the Labor Department's big jobs report on Friday.

"The map played perfectly out for the bulls today, as the plethora of needle-threading news came together in a single session," Cramer said.

Cramer: What made the bulls run like crazy

At a time when many furniture retailers like Williams-Sonoma and Restoration Hardware are struggling, Cramer turned his attention to Wayfair to see how it could differentiate itself from the competition.

Wayfair is the online retailer that sells furniture and home goods at bargain prices for brands like Joss & Main, All Modern, Birch Lane and Dwell Studio. However, it seems that regardless of how the company is doing the stock continues to be a target of short-sellers that dismiss its ability to compete against traditional home goods retailers.

With the stock down more than 16 percent for the year, Cramer spoke with Wayfair's co-founder and CEO Niraj Shah to find out what could be in store for the company going forward.

"Our company was actually profitable for the first nine years, which folks tend to overlook," Shah said.

Read More Wayfair CEO to Cramer: Why we are different

Niraj Shah, Wayfair CEO on set of Mad Money with Jim Cramer on Tuesday, March 1, 2016.
Ashlee Espinal | CNBC

Health care stocks have also been in the danger zone for the past six months, as the cost of drugs and health care has become a hot topic in politics.

DexCom is a medical device maker that is behind such revolutions as the popular continuous glucose monitoring system for people that have type 1 diabetes. Instead of pricking their finger, DexCom provides a sensor that sticks to skin and transmits blood sugar levels to a wireless receiver in real-time,

After a multiyear run, the stock plunged almost 20 percent this year. Can it get its groove back? To find out, Cramer spoke with DexCom CEO Kevin Sayer, who said the company is considering expanding to assist individuals with type 2 diabetes.

"It will be a different system, but we think it can be a huge market for us and very insightful for patients," Sayer said.

However, Cramer still thinks the health care sector is growing like a weed. Despite its flaws, the Affordable Care Act has been helpful to expand health insurance to more people.

One creative way to play the business is with AMN Healthcare Services, a company known as a managed service provider. This refers to type of healthcare cost containment where hospitals let AMN use its expertise to manage the business side of things to allow them to focus on treating patients.

AMN serves thousands of hospitals, clinics, medical centers, government facilities and other healthcare facilities. However, after a huge run the stock has pulled back roughly 24 percent from its highs last September. When it reported a strong quarter recently, the stock resumed its uptrend.

Cramer spoke with AMN Healthcare Services CEO Susan Salka, who commented on the rising demand of both doctors and nursing jobs.

"It really has been an amazing burst that we have seen in demand. And it's not surprising because of the shortages, and we are really just at the beginning, I think, of early innings of all of these shortages," Salka said.

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

PayPal. "The analysts are finally discovering how good it is with Venmo. It is breaking out, do not sell it. I would be a buyer."

CONSOL Energy: "It's going to be down tomorrow because they just gave it the boot from the S&P 500. So, let's be very careful. I don't like fossil fuels."

Read MoreLightning Round: Was just booted from the S&P 500