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Cramer Remix: My rules on how to play Valeant

One look at the action on Valeant's stock on Tuesday, and now investors understand why Jim Cramer preaches that when the words "accounting irregularity" are associated with a company, that always means sell.

Investors repeatedly assured Cramer that Valeant's cash flow was so strong he didn't have to pay attention to the decline in the stock because it was all emotional. After all, they said, prior to Tuesday it had already fallen so much and it was way overdone.

"Even back when Valeant was a beloved stock, I had always been uncomfortable with their business model of rolling up drug company after drug company, slashing research and development and then raising prices," Cramer said.

Thus Cramer stood by his tried and true rule that any time the question of accounting irregularities arises, investors should sell. It could come at the cost of missing out on benefits at times, but it could also avoid big disasters like Valeant.

"Believe me, you'll always remember my admonition and smile that you avoided a stock that destroyed so many allegedly smart people who should have known better," Cramer said.

CNBC reached out to Valeant for comment, and did not immediately receive a response.

Read More Cramer on Valeant: How to avoid such a disaster

The headquarters of Valeant Pharmaceuticals International in Laval, Quebec.
Christinne Muschi | Reuters
The headquarters of Valeant Pharmaceuticals International in Laval, Quebec.

The Dow Jones industrial average opened more than 100 points in the red on Tuesday, yet stocks refused to be crushed. Cramer considered this real resilience, as the Dow continued to keep fighting and closed slightly higher at the end of the day.

"As much as buyers should be more cautious here, every time it looks like this fighting stock market is about to go down for the count, it shakes off the punches and comes right back at you," Cramer said.

Ultimately Tuesday ended in a draw. But it could have been a knockout, and the fact that it wasn't was a huge victory for the bulls.

Read MoreCramer: Why stocks refused to be crushed

Cramer also would not be surprised to see that after an epic move higher in the past few weeks, that the market start to consolidate its gains.

"In my view, this is an environment that favors self-help stocks, the stocks of companies that have gone above and beyond in order to unlock value," Cramer said.

One of the best ways to create value is to break up a business into separate public companies that are easier for investors to understand and potential acquirers to digest.

Allegion is a security business that was spun off by Ingersoll-Rand, the large diversified industrial, back in December of 2013. At the time, Ingersoll-Rand was transitioning away from making heavy machinery and toward making commercial products.

The company also had a small commercial and residential security business that sold locks, door-opening devices, and various security products. In December, 2012, Ingersoll-Rand announced it planned to spin off that part of the business, which ultimately became Allegion one year later.

"I wish I had picked up on this one back when the spin happened at the end of 2013, but even with the tremendous run in Allegion's stock since the break-up, I bet it has additional upside here," Cramer said.

MOD Pizza location
Source: MOD Pizza
MOD Pizza location

While "Mad Money" is a show about stocks, Cramer also thinks it is important to check in with privately held companies making groundbreaking moves in a given industry.

MOD Pizza is a fast-casual restaurant chain that was founded in 2008 and now has 110 locations spanning 16 states. Its business model? Cheap food and paying employees well — and it is working.

Cramer spoke with MOD's CEO Scott Svenson, who founded the company with his wife Ally Svenson. They noticed that while pizza was one of the fastest growing food categories, there was a shocking lack of innovation.

"My wife and I have had success with a couple of other businesses, so we are not into this to just have a pay day … We have four boys, we want to build a business that they can be proud of," Svenson said.

Read More Well-paid employees & cheap food: MOD Pizza

The hunt for stocks that directly benefit from cheaper gasoline has been tougher than Cramer imagined, but he finally found Cedar Fair, which fits the bill.

Cedar Fair is one of the largest regional theme park operators in the world. And when gas is cheap, people tend to spend more money in theme parks that they saved after a long drive.

The stock has a 5.8 percent dividend yield and the company has smart growth initiatives in the pipeline. Cramer spoke with the company's CEO Matt Ouimet, who commented on the increasing popularity of gaming in the industry.

"Think about the amusement park history — a lot of it was about the story lines for movies. The growth in the electronic gaming industry was superseding the size of movies. And so you're seeing people adopt … I think ten years from now it is just going to be a fundamental part of the experience," Ouimet said.

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

Magellan Midstream Partners: "I don't like the oil stocks, but I have to tell you that's run by Mike Mears, who if you're going to own one of these is a real smart guy ... I think Mike Mears knows what he is doing. That is a buy, buy, buy. It is an oil company that acts better than most oil companies."

AMN Healthcare: "That is a staffing company for health care. A buy, buy buy and they are the best at what they do."

Read MoreLightning Round: An oil company acting better than most