Cramer's 'Mad Money' Recap: Diageo Liquor Is Quicker

Go Gap

Cramer told his viewers that stocks talk -- and sometimes even scream -- but that market players don't know how to listen.

Right now everything that the Gap (GPS Quote) is saying is "crystal clear," he said. It's saying that it is going higher and is thus a "triple buy."

Even though he's hated the Gap more and harder than anyone else, Cramer said all that has now changed. The stock reported the worst quarter he's seen, had "horribly deteriorating" cash flows and, to top it off, its CEO, Paul Pressler, recently resigned.

But despite all that, the stock just won't go down.

Rule No. 1 when listening to a stock is that if it doesn't slide on bad news, it's going higher, Cramer said.

But this isn't reason enough to buy the Gap here, he said. People also need to figure out why.

Cramer believes that the stock is going higher because his favorite retail analyst, Dana Cohen, said the stock could go to $25. The Gap closed at $19.38 Wednesday.

Even though its balance sheet might not be so hot, retail turnarounds do happen, he said, advising investors to look at J. Crew (JCG Quote) and Gucci as examples.

And the second clue that the Gap should go higher is that "there is a ton of private-equity money sloshing around," Cramer said. The clock is ticking for the private-equity people to put their money to use, and it's likely they will buy a company such as the Gap.

Therefore, Cramer sees two scenarios that could cause the Gap to go higher. First, there could be a turnaround when a new CEO takes the place of the old.