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"We like companies that can reinvent themselves," Jim Cramer told viewers of his "Mad Money" TV show Monday. That's why he says he's positive on a drug maker he once hated --


(BMY) - Get Bristol-Myers Squibb Company Report


Bristol-Myers has a big problem. With 50% of its drugs coming off patent protection in the next three years, most investors have lost faith in Bristol's ability to replace those lost revenues. But Cramer feels that the company does have a plan to turn around the situation, and that plan will be unveiled at Bristol's annual shareholder meeting on Tuesday.

Cramer: How to Trade This Week

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Cramer said that Bristol tipped its hand with the recent sale of its wound-care business, ConvaTec, for $4.1 billion. The sale, he said, gives Bristol a much needed cash boost, as does its plan to spin off 10% to 20% of its Mead Johnson baby formula business in an IPO.

With the ConvaTec sale and lofty expectations that Mead Johnson might fetch as much as $9.1 billion, Cramer expects cash-rich Bristol to start acquiring smaller drug companies to replace its waning portfolio.

Cramer also is optimistic about the future of Bristol's internal drug pipeline. He noted the company is developing promising drugs for HIV, leukemia, breast cancer, and arthritis. "The problem is that no one believes what Bristol says," said Cramer, adding all of these new drugs could be blockbusters.

Bristol-Myers' valuation is also appealing. He said the company trades at 11.4 times its earnings and an 11% long-term growth rate. The company is also aggressively cutting costs and has a "mouth-watering" 5.4% dividend yield.

Bottom line: Bristol "is just not getting enough love," he said. He believes the company is transforming itself into a pure play drug company and sees tremendous value in the process.

The Aluminum Substitution Game

"When steel prices get as high as they are, companies turn to aluminum," said Cramer.

For that reason, he's changed his mind and is now recommending


(AA) - Get Alcoa Corporation Report

TheStreet Recommends

as a stock investors should own.

Alcoa currently controls 10.9% of the world's aluminum market and 19.8% of the world's raw alumina, making it the most attractive of the aluminum stocks, Cramer said.

He said aluminum is replacing the heavier and more expensive steel in industries from food packaging to autos to aerospace. And he noted China has finally worked through its excess aluminum supplies and is now once again a buyer in the global aluminum marketplace.

Cramer also identified Alcoa's fastener business as a fabulous hidden gem within the company, noting the company provides up to one million fasteners for


(BA) - Get Boeing Company Report

new 787 Dreamliner alone.


BHP Billiton's

(BHP) - Get BHP Group Ltd. Report

failed bid for

Rio Tinto

( RTP), Cramer said Alcoa could be a takeover target and should be valued as high as $50 to $64 a share. The company currently trades at just 10 times its earnings with a 21% long-term growth rate.

Although Alcoa has had a history and reputation of earnings missing and failed executions, he feels those legacies are behind the company.

Wrong on Google

"If there's one thing I believe in, it's accountability," Cramer told viewers. "I'm showing you where I've made my mistakes so you can learn from them."

Cramer apologized for his negative call on


(GOOG) - Get Alphabet Inc. Class C Report

, missing the company's run from $449 to $595 a share.

"Simply put, I stayed negative for too long," said Cramer. He cited four reasons for his decision. First, he relied on market data provided by Comscore, rather than doing his own homework. On Feb. 26, Comscore reported declining traffic at Google, but he said that couldn't have been further from the truth.

Second, he made the mistake of comparing Google to competitor



, reasoning that if Yahoo was shrinking, Google must be too. In reality, Google was taking share from Yahoo.

Third, he neglected to account for how quickly Google would see a return from its acquisition of DoubleClick, which, it turns out, is doing a lot better than anyone expected at this early stage.

Finally, he misjudged Google's international business growth. The company's international revenues grew at 14% this past quarter, much higher than Cramer expected.

"Now is the time to learn from my mistakes," said Cramer. With Google trading at just 23.5 times its earnings and carrying a 28% long-term growth rate, Cramer predicted Google could soon see $697 a share.

Mad Mail

In this segment, a viewer asked Cramer about

Education and Technology Group

(EDU) - Get New Oriental Education & Technology Group Inc. Report

. Cramer said that stock is difficult to analyze and he'd stay away.

Another viewer asked about

Shaw Group

( SGP). Cramer said he's concerned with the company's nuclear exposure domestically and its dependence on its international exposure.

Sudden Death

Cramer was bullish on

Arch Coal

(ACI) - Get Albertsons Companies, Inc. Class A Report


Peabody Energy

(BTU) - Get Peabody Energy Corporation Report


Chesapeake Energy

(CHK) - Get Chesapeake Energy Corporation Report


Cramer was bearish on

North American Palladium



International Coal Group

( ICO).

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Lightning Round

Cramer was bullish on

Waste Management

( WMI),


(DRYS) - Get DryShips Inc. Report



(FRO) - Get Frontline Ltd. Report


Atlas Energy Resources

( ATN),


(KR) - Get Kroger Co. Report






(TEX) - Get Terex Corporation Report



(V) - Get Visa Inc. Class A Report





Becton Dickinson

(BDX) - Get Becton, Dickinson and Company Report


Cramer was bearish on

Teledyne Technologies

(TDY) - Get Teledyne Technologies Incorporated Report


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Jim Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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