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Nelson Peltz has been the "catalyst shareholder" at both




Cadbury Schweppes


, Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

Peltz has given tips to both companies, and they have listened, Cramer said. On March 15, Cadbury announced that it was splitting in two. Cramer offered up the next two companies he believes should follow in its footsteps.

Breaking up is not hard to do -- just look at

American Standard


, where CEO Frederic Poses "created instant value," he said.

There are two companies here that Cramer likes:


(CLX) - Get Report


ConAgra Foods

(CAG) - Get Report

. With private-equity firms everywhere, "even in tired, old brands," Cramer believes that any breakup could put a company in play.

Plus, the combination of Clorox's products is "something that makes no sense whatsoever," Cramer said. It makes charcoal and salad dressing -- two businesses that have nothing in common.

ConAgra is another company that has "ailing brands," he said. "It is currently conceived as making a sandwich out of too many ingredients" and needs to be split up.

Both companies, Cramer said, "are in the sweet spot of value creation." They could wake up tomorrow and break into two, three or four companies, or sell their underperforming divisions to "hungry" private-equity firms, he said.

"Seriously, these executives can't possibly support all their brands," Cramer said.

And in the case they don't split up, Cramer said he doesn't see much downside for Clorox or ConAgra anyway because they are "among the cheapest" of the packaged-goods companies, and we are in the midst of an economic slowdown, where both of these are good to own.

CEO Benefit of the Doubt

In part three of his new "Benefit of the Doubt" series, Cramer put Jim Sinegal, the CEO of


(COST) - Get Report

, on his BOD board.

A couple of weeks ago, people worried that the chief executive had lost his touch when the stock went down after Costco announced a stricter return policy. But now Cramer believes that the bad news is in the past, though the stock is still going down.

Cramer said he would give Sinegal the benefit of the doubt this time around.

Image placeholder title

Cramer also added Lawrence Montgomery, CEO of


(KSS) - Get Report

, to his BOD list and said that despite what people may think, the retailer has not "run out of gas."

Instead, Cramer believes that the company offers good merchandise in a clean environment, where it doesn't rip people off. Kohl's keeps getting hit because market players don't believe in Montgomery. But that is "ludicrous," Cramer said.

Investors don't have to buy it here at $75.75, he said. But once it comes in, they should get in.

Am I Diversified?

In his "Am I Diversified?" segment, a viewer named the following five stocks:


(IBM) - Get Report



(AAPL) - Get Report



(BA) - Get Report



(MSFT) - Get Report


Sirius Satellite Radio

(SIRI) - Get Report


Cramer said the portfolio was not diversified at all, as the caller had three-of-a-tech kind with IBM, Apple and Microsoft. He advised the caller to get out of IBM and Microsoft and pick up a health care stock and a retailer.

The next caller said his portfolio consisted of the following five stocks:Apple,


(GOOG) - Get Report


NYSE Group



Goldman Sachs

(GS) - Get Report




, the last three of which Cramer owns for his charitable trust,

Action Alerts PLUS.

Cramer called Apple a tech stock and Google a media play, and blessed the portfolio as diversified.

His last caller owned

Cheniere Energy

(LNG) - Get Report


International Game Technology

(IGT) - Get Report



(MKC) - Get Report


Toyota Motor

(TM) - Get Report



(MO) - Get Report

, the last two of which Cramer owns for his charitable trust.

Although Cramer said the portfolio was diversified, he prefers

Devon Energy

(DVN) - Get Report

to Cheniere.

Mad Mail

In his "Mad Mail" segment, Cramer told a caller that if Sirius merges with

XM Satellite Radio


, he predicts it will go to $5. But if it doesn't, it could go to $2 or $3 and XM would be "wiped out." Sirius closed at $3.26 Wednesday.

Responding to anther mailer, Cramer said that although he liked

Take-Two Interactive

(TTWO) - Get Report

at first, a deeper look showed that the numbers for the stock were nonexistent.

He advised the caller not to buy TTWO and said that without a deal, it will go much lower.

During his "Sudden Death" round, Cramer was bullish on


(MO) - Get Report

, a stock he owns for his charitable trust,

Action Alerts PLUS.

He was bearish on







Lightning Round

Cramer was bullish on

JPMorgan Chase

(JPM) - Get Report


Bank of America

(BAC) - Get Report


Jones Soda




(ARAY) - Get Report



(HSC) - Get Report



(CMI) - Get Report



(PH) - Get Report



(CAT) - Get Report



(TEX) - Get Report


Lamson & Sessions






Charter Communications

(CHTR) - Get Report



(CMCSA) - Get Report


Time Warner



Allegheny Technologies

(ATI) - Get Report



(DIS) - Get Report


Cramer was bearish on

Valero Energy

(VLO) - Get Report


For more of Cramer's insights during the Lightning Round, click here


Want more Cramer? Check out Jim's rules and commandments for investing from his popular book by

clicking here


At the time of publication, Cramer was long Altria, Toyota Motor, NYSE Group, Sears, Goldman Sachs and Caterpillar.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.