Cramer Remix: My leftover question for GE is 'Did you mislead us or yourselves?'

Key Points
  • "Mad Money" host Jim Cramer weighed in on General Electric's decline and questioned the actions of the company's management.
  • Cramer also sat down with the CEO of Regeneron Pharmaceuticals, who spoke about competing with Novartis.
  • In the lightning round, Cramer got a little bearish on two medical stocks.
Cramer Remix: My leftover question for GE is 'Did you mislead us or yourselves?'

CNBC's Jim Cramer was looking for some reassurance when he and his "Squawk on the Street" colleagues Carl Quintanilla and David Faber interviewed the CEO of General Electric on Tuesday.

"While I'm very interested in his plans for the future, I did want some sort of 'truth and reconciliation' before I'd be willing to recommend the stock, even down here," the "Mad Money" host said, borrowing a phrase from the legendary human rights activist Archbishop Desmond Tutu. "FYI, GE's now 12 points below where it was when the former CEO, Jeff Immelt, came on the show and assured us everything's fine."

Due to GE's cash problems and poor performance, its new CEO, John Flannery, announced a widespread restructuring plan on Monday to slash the dividend in half and shed under-performing divisions.

But when Cramer asked Flannery about his company's past transgressions on Tuesday, the new CEO didn't seem interested in reconciling with the mistakes GE made in the past.

"What matters to him is the future, not the past. Normally, I'm all for that kind of attitude, but as someone who believed that GE was doing much better than it was, I need to know two things: was the old management misleading us or were they misleading themselves?" Cramer said.

Buy the dips

Pedestrians walk past the New York Stock Exchange.
Michael Nagle | Bloomberg | Getty Images

Every time the market pulls back, Cramer sees tons of people get scared out of their wits about a potential crash.

"Don't get me wrong, it's OK to be concerned. You should always keep a close eye on your stocks — they're not cash," Cramer said. "But I think worries about a devastating sell-off lurking just around the corner are indeed overblown, because there are a lot more benign forces at work in this market and not many malignant ones that can cause fortunes to be lost in the blink of an eye."

Cramer acknowledged why investors might have been particularly perturbed by Tuesday's dip. There was no immediate cause for the sell-off, there's very little volatility despite geopolitical tensions, tax reform seems like it's a long way away and stocks have run up quite high.

"All that said, I remain cautiously optimistic and think you need to use these dips — yes, indeed, I know — as buying opportunities. Why? Five reasons," Cramer said.

Off the charts: Ways to diversify

A customer browses goods at a Costco Wholesale store in New York.
Victor J. Blue | Bloomberg | Getty Images

Cramer loves the technology sector, but right now, it's developing a bad sign: most of the gains are narrowly spread among a few major winners, a sign of bad breadth.

With Apple, Alphabet, Microsoft and Intel driving most of the technology sector's surge, Cramer turned to technician Bob Moreno, the publisher of and his colleague at, for help sorting out the moves.

"Moreno thinks the fabulous bull market in tech might be less solid than it seems," Cramer said. "As much as I'm a fan of many tech stocks here ... you always need to have a diversified portfolio in case any one particular sector gives up the ghost."

Regeneron CEO on Novartis competition

Dr. Leonard Schleifer, CEO, Regeneron
Scott Mlyn | CNBC

Recent competition from Novartis AG hasn't phased Dr. Leonard Schleifer, the founder, chairman and CEO of Regeneron Pharmaceuticals, in the slightest.

Novartis, a rival pharmaceutical giant, announced that it was in trials for a drug meant to compete with Eylea, Regeneron's treatment for age-related macular degeneration.

"If you think about Eylea, it's a pretty high bar to take on. We're going to give probably 2 million injections of Eylea this year alone in the United States, and [Novartis is] two years away at least from their first injection commercially," Schleifer told Cramer on Tuesday.

The CEO said it was "funny" that, in Novartis' presentation of its competing drug, they seemed to glaze over their chief end goal.

"Their primary endpoint was vision, and in that, while they were not different — so-called not inferior — we were actually numerically higher. And it's like they forgot that," Schleifer said. "I think they're a little bit long on enthusiasm and short on data right now."

Norwegian Cruise Line CEO: Demand for Cuba

Frank Del Rio, CEO, Norwegian Cruise Line
Scott Mlyn | CNBC

As President Donald Trump's administration cracks down on travel to Cuba, Norwegian Cruise Line Holdings President and CEO Frank Del Rio is seeing an opposite trend take hold with consumers.

"The demand for the Cuba vacations [is] off the charts," Del Rio told Cramer on Tuesday. "The booking curve behaves more like an exotic vacation, where people book months and months in advance and the pricing is just — I can't give you a number, but it's just astronomical."

Del Rio added that Norwegian Cruise Line is the only cruise company of the "big three" — Norwegian, Royal Caribbean and Carnival — allowed to send all of its brands to Cuba, to a huge benefit.

"It's one of the most profitable itineraries that we have. And now, we have up to 4 percent of our capacity dedicated to Cuba," Del Rio said.

Lightning Round: Sickly stocks?

In Cramer's lightning round, he flew through his take on some callers' favorite stocks:

Patterson Companies, Inc.: "No, no. The only thing that is even near dentistry that we like right now is Danaher, which has a division that was doing poorly in dental and is now doing well."

Select Medical Holdings Corporation: "No. The specialty hospitals do not make me happy. I think that they're too hit or miss."

Disclosure: Cramer's charitable trust owns shares of General Electric, Apple, Alphabet and Danaher.

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