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"It's time to worry less about capital appreciation and more about capital preservation," Jim Cramer told viewers of his "Mad Money" TV show Tuesday -- at least until the

Federal Reserve

finally acts and slashes rates big.

Cramer said he wants to keep home-gamers involved in the market, but advised them to keep a low-risk profile. They should invest in stocks with good dividends and hold some cash on the sidelines to take advantage of opportunities.

And one of those opportunities has arrived, said Cramer, when four companies recently took a lesson from Donald Trump and fired three CEOs and one chairman. Cramer examined each of these firings to see which ones will make money.

First up is


(SBUX) - Get Starbucks Corporation Report

, which just replaced CEO Jim Donald with company founder Howard Schultz. Cramer has loathed


since February 2007.

Cramer, long a fan of Schultz, said the stock has taken a beating because Starbucks has too many stores; it was expanding to suit the needs of Wall Street; it was failing to innovate; and it was lagging in customer service.

That all changes now that Schultz is back at the helm, Cramer said. He compared the company's turnaround to that of


TheStreet Recommends

(MCD) - Get McDonald's Corporation Report

, a stock he owns for

Action Alerts PLUS. Coincidentally, McDonald's also brought back key executives to spur innovation and growth.

Cramer's change of heart in Starbucks came after Schultz called him to assure him he would do whatever it takes to turn the company around. Cramer said he believes him.

According to Cramer, the best way to scale a position in Starbucks is to buy one-quarter of the position now, another quarter a week from now, and the remaining half after the company reports at the end of January.

A Lot More to Do

Next on the list of "resignations" is Jimmy Cayne, CEO of

Bear Sterns


, who was just replaced by Alan Schwartz. This stock has fallen from $172 to $71.

Bear is a firm that's now known for its exposure to mortgage-backed bond trading, Cramer points out, "and changing the CEO won't fix that." Bear Sterns is a stock that investors should not touch, Cramer said. The company has a lot more work to do to clean up its reputation and balance sheet.

Cramer recommended

Merrill Lynch


as an alternative to Bear Sterns. Merrill, he points out, is a stock with solid management, an indestructible brand, and a substantial retail network. Cramer feels Merrill has already cleaned house and is laying the ground work for future success.

Broken Companies

Cramer reminded viewers that he still prefers

Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. Report

over all other brokers, but now feels Merrill is getting attractive.

While Cramer feels there is something to salvage at



Bear Sterns

, that's not the case with the firings at

Sallie Mae

(SLM) - Get SLM Corp Report


Krispy Kreme


. The former, he points out, are broken stocks, while the latter are broken companies with considerable earnings risk.

Sallie Mae's business is changing, Cramer said, with more students opting for grants instead of loans and more graduates defaulting on the few loans they have. Business is so bad, Cramer inducted CEO Albert Lord to the top spot on his "Wall of Shame."

Krispy Kreme, Cramer says, "is sinking, no matter who runs it." It has a history of no real earnings and closing stores because franchisees are losing money. Cramer said he "would not touch KKD with a 10-foot pole."

Air Products CEO John McGlade

Cramer was once again taking the temperature of the economy by welcoming John McGlade, CEO of

Air Products and Chemicals

(APD) - Get Air Products and Chemicals, Inc. Report

to the show.

McGlade indicated that their business, like that of



, is also strong, with 55% of its sales now outside of the U.S. He also confirmed that the company has been able to raise prices successfully and, with shortages in gases such as helium, it's ramping up production to meet demand.

Cramer reiterated his buy on Air Products, saying that if the

Federal Reserve

continues to cut rates, investors could see a 25% boost in the price of stock.

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In the Lightning Round, Cramer was bullish on

Bristol-Myers Squibb

(BMY) - Get Bristol-Myers Squibb Company Report





Biogen Idec

(BIIB) - Get Biogen Inc. Report


EMC Corp



Intercontinental Exchange

(ICE) - Get Intercontinental Exchange, Inc. Report


Foster Wheeler



Sirius Satellite Radio Inc

(SIRI) - Get Sirius XM Holdings, Inc. Report


Deckers Outdoor Corp

(DECK) - Get Deckers Outdoor Corporation Report

Cramer was bearish on


(VMW) - Get VMware, Inc. Class A Report



(ETFC) - Get E*TRADE Financial Corporation Report



(C) - Get Citigroup Inc. Report

Want more Cramer? Check out Jim's rules and commandments for investing by

clicking here


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


At the time of publication, Cramer was long McDonald's, Goldman Sachs, EMC, Schering-Plough and Citigroup.

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.