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Cramer Remix: It's worth more dead than alive

Jim Cramer is no longer frightened that strong earnings could mean that the Federal Reserve will make a move.

"We are finally free to look at the merits of individual companies. We are free to stop fearing that parts of the economy are too good," the "Mad Money" host said.

Fed Chair Janet Yellen relieved the fear of many investors on Tuesday when she confirmed that the Fed would proceed with caution. It proved to Cramer that Yellen is aware that things are far more fragile than they seem and that Yellen understands her actions could severely impact both the U.S. and world economies.

Yellen also cited housing as an area where she would like to see improvement. Cramer was shocked at how little KB Home's stock rallied after reporting a monster quarter last week.

"It's worth more dead than alive, meaning its real estate is more valuable than the company's current market cap, especially its amazing West Coast holdings," Cramer said.

Cramer was surprised that Yellen clearly did her homework on the housing industry and recognized that it punches above its weight in the economy.

Read MoreCramer: With Fed fear gone, these stocks thrive

U.S. Federal Reserve Chair Janet Yellen
Kevin Lamarque | Reuters
U.S. Federal Reserve Chair Janet Yellen

Just one week after Yellen spoke in unity with Federal Reserve members in favor of higher interest rates, she changed her tone.

"She fooled us, again, or maybe we are just choosing to be fooled?" the "Mad Money" host said.

On Tuesday, Yellen made it clear that the Fed chair believes in a cautious approach. Yet, the same crowd that was so noisy calling for higher interest rates clearly forgot the impact of what happened when they raised in December.

Cramer refreshed their memories.

The first implication was that the dollar spiked, which caused an erosion of U.S. companies competitive advantage, along with terrible currency translations around the world.

And after that rate hike in December, the wealth effect for the stock market disappeared.

Read More Cramer: Janet Yellen fooled us, again

After a long history of underperformance, Cramer had written off the stock of Xerox as a dog on Wall Street. But after taking a look at the chart, he decided to rethink his entire approach.

Cramer consulted with technician Bruce Kamich, who is a professor at Baruch College and a colleague of his at RealMoney.com.

Looking at the daily chart of Xerox, Kamich found that the stock has been making its way higher since the beginning of the year. It has rallied so hard lately that the stock is now above both its short-term 50-day moving average and its long-term 200-day moving average.

Kamich thinks Xerox could be on the verge of a major breakout.

If the stock can reach above $11 a share, Kamich believes that there could be a quick run up to $13 or higher.

Read MoreCramer: Unleash the hounds—time to buy Xerox



With the labor department's non-farm payroll report ahead on Friday, Cramer tried to get a read on the employment situation in the U.S. from Paychex CEO Marty Mucci.

Paychex is the No. 2 payroll processor in the nation, specializing in small and medium sized businesses and has a robust human resources and benefits outsourcing division.

The company reported on Wednesday and delivered in-line earnings on top of slightly better than expected revenue. It also left full year guidance unchanged.

"Small business job growth looks like it's coming pretty well, we did moderate a little bit in checks. But overall I think things are going pretty good right now," Mucci said.

One space of stocks that isn't typically covered on Wall Street are those that are a play on the inevitability of death. That is why Cramer spoke with Service Corporation International's CEO Tom Ryan, as the largest operator of funeral homes and cemeteries.

Service Corp has a gigantic 16 percent market share in its industry, which is large considering this is a highly fragmented business with small players controlling 79 percent of the market. The company has a long history of making acquisitions in order to reduce competition, which has allowed the stock to produce excellent returns.

However, while the stock is down 9 percent year-to-date, Cramer attributed some of this to the company's debt, which it is actively restructuring on the balance sheet.

"These businesses are generational … What we tried to do is create a culture where we create opportunities for the employees of the company. We create opportunities for the former owners to stay involved. And so, we are going to grow the business along those lines over time and invest the capital wisely," Ryan said.

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

Kinder Morgan: "Anything is possible. I've lost faith in Kinder Morgan. Period."

Netflix: "I like Netflix. Why? because I think the opportunity for Netflix is bigger than the stock. I think it is a worldwide network and it should not be constrained by this lower total market capitalization."

Read MoreLightning Round: Opportunity bigger than the stock