Cramer: ‘Intriguing situation’ creates opportunity
The Alibaba initial public offering promises to take the Street by storm with anticipation already having a significant impact on the tech sector. Jim Cramer believes the divergence between the Dow Jones Industrial Average, which closed higher, and the Nasdaq, which closed lower on Monday, reflects the phenomenon. That is, pros have become so eager to get a chunk of the IPO, they're selling a slew of their tech winners to raise additional funds. Find out which 10 stocks may be under pressure as well as Cramer's buy ahead of the IPO.
Read MoreTech investors facing Alibaba headache
Also, Cramer followed up with insights on Angie's List (ANGI), a company called to his attention by Mad Money viewer "Olivia in Michigan" last week. "I would not be a buyer of Angie's List, even down here," Cramer said. "However, I do think that this is an intriguing situation where the company could easily turn itself around if management makes the right decisions; or if management doesn't get its act together and the stock keeps falling, I could see an acquirer coming in and making the necessary changes for them."
Turning attention to JDS Uniphase (JDSU), Cramer said a recently announced plan to split the business into two separate companies could unlock significant shareholder value, with potential gains totaling 25 percent or more. "Now, JDS Uniphase expects their breakup to be completed by the third-quarter of next year, and I think you should own the stock going into the spin-off. I can see it rallying substantially until that time," Cramer said.
Read MoreCramer: Big changes should generate 25% gain
Turning his attention back to Alibaba, Cramer said Apple (AAPL) and 3 other stocks could quickly become potential buys, if they encountered additional selling from pros looking to raise funds to grab a bigger piece of the IPO.
Read MoreAmid Alibaba rubble, Cramer finds 4 buys
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In the Lightning Round, Cramer said he liked the management of Zynga (ZNGA) despite the missed quarters. Also he said Alkermes (ALKS) was attractive due to its pipeline and St. Jude (STJ) was a buy on the decline.
Also, Cramer spoke with Michael Forman, the chairman and CEO of FS Investment Corp. (FSIC). "It's what's known as a business development company that lends money to businesses that might not normally get loans from traditional lenders," Cramer said. As a ten dollar stock that yields 8 percent, "it might be right for the yield seekers out there," Cramer said. "Do your homework and take a look at it."