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Cramer Remix: This tech growth story just got better

Cramer Remix: This tech growth story just got better

Once in a while Jim Cramer spots a takeover that is so transformative that the acquirer skyrockets because the deal is clearly a positive. This is unusual, as typically only the company being acquired will spike on takeover news.

On Tuesday, Tessera Technologies announced it is buying DTS Inc., the maker of high-quality audio technology, for $850 million. That stands at a 23 percent premium to where DTS's stock closed on Monday.

"By acquiring DTS, this growth story gets some additional legs, powered by the internet of things, virtual reality and the connected car," the "Mad Money" host said.

Tessera is an intellectual property company that creates technology for the semiconductor industry, and then licenses it out. Its purpose is to research and develop technologies, and then send it to electronics manufacturers. Its intellectual property can be found in more than 100 billion chips.

"Tessera and DTS are the kind of companies whose products you never see, but their technology powers the devices you use every day," Cramer said.

The US Capitol building
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Investors can approach the Federal Reserve's decision not to raise rates in two ways: jump up and down with glee and start talking about December rate hikes, or go on with life and buy stocks that show growth. Cramer is taking the second approach.

"How come I'm not upset about the Fed's decision to do nothing? Because, like Janet Yellen, I see little inflation and low growth on the horizon, which means raising rates would be a really dumb idea," he said.

The Fed impressed Cramer, as it proved it was not on autopilot, raising rates because it said it might do so. Yellen's commentary was also in sync with what Cramer heard from several CEOs who are trying to figure out how August turned out to be a weak month.

As the pharmaceutical industry faces intense pressure for drug pricing, Allergan CEO Brent Saunders said he is committed to responsibly pricing his company's products.

"The American people deserve to be angry, and only we through self-police and self-regulation can fix it. A government takeover of healthcare is not what we need. We need discipline, we need responsibility, we need companies to do the right thing," Saunders told Jim Cramer in an interview on Wednesday.

Allergan released a "social contract with patients" in the beginning of September to address the cost of medicines and the company's approach to pricing and innovation. While Saunders understood that the contract could put pressure on management to innovate in the future, he said that's what investors should expect from his company.

Brent Saunders, CEO of Allergan.
Adam Jeffery | CNBC

Unless material facts of the company change, Jim Cramer is sticking with Disney.

He used Disney to help investors understand the difference between when to give up and cut their losses, and when to hang on through the near-term pain for long-term rewards.

"Disney has the balance sheet to change its fortunes, just like Sprint and T-Mobile did ... It has tremendous intellectual property. It's got great leadership. So, how can this company be written off?" he said.

Another frequently underestimated stock is finally getting its due, too. Cramer watched as Flex has transformed itself into an innovation factory as an outsourced manufacturer, formerly known as Flextronics.

Flex helps its clients invent new products and then provides expertise throughout all of the stages of design, production and distribution process.

The new model seems to be working, as the stock is up nearly 20 percent this year. On Tuesday, Flex launched an innovation hub in New York City, which provides most offerings for the connected home, but in an office setting. Cramer spoke with Flex's CEO Mike McNamara on what clients will find visiting the center.

"The neatest thing you are going to see is a whole connected home demo … connected cars connecting to an in-home hub. Cars, coffee pots, HVAC systems, lights — anything that you use in the home, that are connected, we can connect in," McNamara said.

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

Genworth Financial: "Too risky for me. Come on man, I'm a guy who likes Travelers. I'm a Travelers guy and then I'm a Chubb guy. I'm not a Genworth guy."

Broadcom Ltd: "Don't sweat the program. That stock has got long term $200 written all over it. That's Hock Tan [CEO] he's the manager and I like it. This isn't Cleveland, it's more Cincinnati."