Cramer's 'Mad Money' Recap: CEOs Who Should Go

You're either playing defense or losing money, and right now consistent secular growth stocks are the way to go, he said.

Hershey (HSY Quote) has low risk and high reward.

This is a stock that shouldn't lose too much, as it has limited downside, Cramer believes. Although Hershey has been unfairly smacked around by analysts, the stock is 3 points above its low and deserves to be much higher, he said.

Wachovia recently downgraded Hershey because of its subpar first-half sales, but Cramer believes Wachovia was wrong in doing so.

Hershey is below Wachovia's price target, so it's not making any sense, he said. Also, UBS reduced its price target for Hershey due to the hot weather and high gasoline prices, but according to Cramer, that doesn't make sense either.

In fact, Cramer believes Hershey has the best risk/reward right now out of almost all the stocks he's familiar with. It is a down-2, up-15 situation, he said.

Insurance Insights

The insurance industry is burning up, and Cramer said he has three "tarnished insurance companies that might be undervalued."

These are Marsh & McLennan, American International Group (AIG Quote) and Aon (AOC Quote).

Working through these three "fallen giants," Cramer tried to find the one that has recovered the best from two years ago when New York Attorney General Eliot Spitzer's probes hit.