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) -- How do you sell a stock that's doing great and sell one that's doing poorly? Jim Cramer asked his

"Mad Money"

TV show viewers Monday as he talked about the rotation currently underway in the markets.

Cramer said that for some investors, such as Warren Buffett, buying and selling stocks isn't a matter of timing the market but a matter of choosing great companies that represent great value and just owning them for the long term. But for other investors, like those managing hedge funds and mutual funds, timing is everything.

That's why as the market begins selling the "slow and steady" stocks like those owned by Buffett's

Berkshire Hathaway

(BRK.B) - Get Berkshire Hathaway Inc. Class B Report

for sexier, more cyclical stocks that will do well as the global economy recovers, these managers are finding themselves in trouble.

Cramer said money managers can't afford to just have "good" stocks in their portfolios, they need great ones, ones that will not only outperform the markets but also their peers. They must prove they're flexible and can change with the markets, he said, which is why the sexy stocks continue their march higher while those stocks doing well will continue to be just OK.

Every fund manager will eventually have to admit they're wrong and make the switch, Cramer concluded, and investors would be wise to follow suit ahead of their desperation buying.

Executive Decision: Mark Ellis

In the "Executive Decision" segment, Cramer spoke with Mark Ellis, chairman, president and CEO of

Linn Energy


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, the oil and gas master limited partnership with an 8.8% yield that came under fire over the weekend after harsh accusations from


over the company's valuation.

Ellis responded to the negative press by saying that two independent accounting firms have been combing the books at Linn for its recent acquisitions and both have valued the company between $35 to $42 a share, far more than the $18 a share


implied. He also said Linn has never used "aggressive" accounting and the company's finances have never been challenged because Linn operates with total transparency.

Ellis added it appears the analysis cited in the article was based on merely a single quarter's worth of the company's results, which is not a fair metric. He said looking at a full year of results makes far more sense when determining how much Linn is worth.

When asked about some of the problems in the company's first-quarter results, Ellis said the weather and infrastructure issues that hampered production will not carry over to the second half of 2013. He reminded viewers that while prospecting for oil is a risky business, Linn is completed hedged against commodity risk and only buys long-lived assets with proven reserves, both of which lessen the risk to investors significantly.

Cramer said he's siding with Ellis, which is why he owns the stock for his charitable trust,

Action Alerts PLUS.

Executive Decision: Naren Gursahaney

In his second "Executive Decision" segment, Cramer spoke with Naren Gursahaney, CEO of


(ADT) - Get ADT, Inc. Report

, a company that missed earnings by 2 cents a share despite a picking in housing. ADT is currently an Action Alerts PLUS holding.

Gursahaney said that over the longer term, the more new houses are built, the more opportunities for ADT to continue with its market-leading products. He said that ADT currently has 25% marketshare and will add 25,000 new subscribers just from new home creation alone this year.

However in the short term, Gursahaney said, there were some dealer problems that hindered his company's quarterly results, as well as some problems that emerged from splitting the commercial and residential products into separate divisions. Those investments, he said, are now largely behind the company and growth will resume.

When asked about the competitive environment, Gursahaney said ADT continues to have the strongest portfolio of products, products that, unlike many of the competitors, can run on any broadband system and is not tied to a single provider. He said ADT always starts from a life, safety and security focus, which means it ha the most reliable products on the market.

Cramer said he continues to like the ADT story.

Lightning Round

In the Lightning Round, Cramer was bullish on

Ellie Mae



Radian Group

(RDN) - Get Radian Group Inc. Report


Genworth Financial

(GNW) - Get Genworth Financial, Inc. Class A Report


Discover Financial Services

(DFS) - Get Discover Financial Services Report



(AGN) - Get Allergan plc Report


Cramer was bearish on

EZchip Semiconductor



SandRidge Energy

(SD) - Get SandRidge Energy, Inc. Report





Two Harbors

(TWO) - Get Two Harbors Investment Corp. Report


Executive Decision: Irwin Simon

In his third "Executive Decision" segment, Cramer sat down with Irwin Simon, chairman, president and CEO of

Hain Celestial

(HAIN) - Get Hain Celestial Group, Inc. Report

, a stock that's come under fire of late after the company reported what was perceived as weak earnings and guidance.

Simon said Hain does not give quarterly guidance in order to avoid the very confusion the markets have been experiencing. He said Hain did report $20 million less in revenue after the company missed some UK promotions and others were pushed into the following quarter.

Responding to his critics, Simon reiterated his goal is to build a global organic food and wellness company, and that means building brands in Europe and the UK -- may not be stellar performers at the moment. He said that here in the U.S., Hain's consumption is up 9%, which bodes well for the company globally once the global economy returns to growth.

Simon said he never receives credit for making great acquisitions and strategic deals, nor any credit for the company's successes in Canada and other parts of the world. He said that Hain's strategy is no different than that of


(PEP) - Get PepsiCo, Inc. Report


Cramer said he agreed with Simon's analysis and remains a believer in the stock.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer took a look back on the 2010 flash crash that sent stocks skidding over 1,000 points in just minutes, seemingly for no reason. He said that two years later, it's time to embrace high-frequency trading and the chaos it sometime creates because there's likely no way to stop it.

Cramer said it's time to stop fretting about these trading platforms running amok and begin to start profiting from them. That's why he continues to recommend investors use limit order, and not market orders, when they trade.

He also advises companies with buyback programs to set limits on multiple levels to buy their stock in the event the machines send it to extraordinarily low levels.

It's time to profit from high-frequency trading, Cramer concluded. Everyone else is.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC


-- Written by Scott Rutt in Washington, D.C.

To email Scott about this article, click here:

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At the time of publication, Cramer's Action Alerts PLUS had a position in ADT and LINE.

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.