Cramer's 'Mad Money' Recap: The Next Great Diagnostics Play

Cramer urged people to wait three days before buying the stock and to use limit orders.

'The Benefit of the Doubt'

"There are times when trust will make you more money than distrust," Cramer told viewers as part of his weeklong "Benefit of the Doubt" series. "There are some CEOs that will make you more money if you take what they say at face value, even if they screw up, than if you place your bets against them."

Some of these managers, he said, "deserve the benefit of the doubt." Although this may run against any single instinct people have, it's true. When Cramer talks about deserving the benefit of the doubt, he said he's referring to managers in the consumer products and retail industries.

"I'm talking about something more important than the numbers," he said, adding that the time frame for these stocks is longer than 24 hours. "We're not trading here."

One such CEO who deserves the benefit of the doubt is Coach's (COH Quote) Lew Frankfort, Cramer said. Last May, when Coach missed its numbers, Frankfort went on the show and said it was a one-time thing, Cramer said. And if viewers gave him the benefit of the doubt then, they might have caught a double in the fancy-handbag maker, Cramer said.