So, why is Cramer so confident that GE has hit bottom?
For that, consider the 11-month tenure of CEO John Flannery, who has been at work cutting costs, reviewing GE's strategy and selling off parts of the company to re-balance the industrial's asset base.
But even with all of Flannery's changes, shares of GE have struggled to sustain their gains, culminating in the company's eviction from the Dow.
Then, last Tuesday, GE released the results of its strategic review.
"The plan? General Electric is going to spin off its health-care business as an independent company within the next year and a half, they’re going to sell their interest in Baker Hughes, a GE Company – the big oil service subsidiary – over the next two or three years, and we already know that the transportation business is going to Wabtec," Cramer said.
The remaining company will be a tech-focused aviation, power and renewable energy play. With that, Flannery will reduce GE's hard-to-understand image to that of a clear-cut industrial that makes engines and turbines.
"I have to say I like [GE's stock] here," Cramer said. "I love the aviation business — we know that aerospace is one of the hottest industries around, with a multi-decade backlog of demand — and thinking long-term, it’s definitely better to be in the renewable energy business than the fossil fuels business."
Cramer also liked the fresh attitude Flannery brought to GE, a company long known for being an opaque operator that wouldn't reveal its underlying flaws. Flannery, he said, was comfortable with being honest about GE's problems.
"Consider that even Steve Tusa, the bearish J.P. Morgan analyst who’s been right about GE every step of the way, has an $11 price target on this thing,” Cramer said. “The stock’s currently at $13 and change. If the biggest bear on GE thinks it’s going to $11, I say the stock’s a buy."