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When the markets rally big, people tend to get carried away, Jim Cramer told his Mad Money viewers Thursday. But remember, discipline should always trump conviction. When you get greedy, you will often lose.

How does Cramer know investors are getting careless? Because they see takeovers everywhere, like the rumors today that Apple (AAPL) , a stock Cramer owns for his charitable trust, Action Alerts PLUS, was in talks to buyNetflix (NFLX) or Time Warner (TWX) to get its hands on HBO. Cramer said you'd have to be nuts to speculate on such an outlandish rumor in such a fickle market.

Investors have also been speculating on the price of oil, but Cramer urged viewers to remember that at $50 a barrel, new supply will begin to return and the oil rally will likely run out of steam.

Cramer also urged viewers not to speculate on companies without good earnings and a solid dividend. Case in point: Ionis Pharmaceuticals (IONS) , which fell a staggering 39% on the loss of a key partner for one of its drugs in development.

Investors should be buying proven names, like AAP holding Costco (COST) , which rose 3.5%, or Whole Foods Market (WFM) , which continues to turn itself around.

Cramer told viewers to look at their portfolios and trim positions that have run up big. "Bulls make money, but hogs get slaughtered," Cramer concluded. Don't lose your discipline.

Executive Decision: Cheryl Bachelder

For his "Executive Decision" segment, Cramer spoke with Cheryl Bachelder, CEO of Popeyes Louisiana Kitchen (PLKI) , a stock that's down 10% from its February highs after posting a 6-cents-a-share earnings miss while reaffirming its full-year guidance.

Bachelder said that after a slow start to the quarter, Popeyes ended strong and still expects to have a good year with a strong long-term outlook. She said value remains the theme, but Popeyes continues to offer top quality food along with promotions when needed.

Popeyes is also investing big for the future with a bold technology plan to drive sales and increase customer engagement.

Bachelder said Popeyes represents a growth opportunity both domestically in the number of restaurants and the volume of sales per restaurant, but also in the global expansion of its brand. She said Popeyes has already committed up to $120 million to its stock buyback program as a sign of confidence.

Cramer Loves Bargains

The only real bargains on Wall Street are the same bargains you find on Main Street, Cramer told viewers, as he profiled the retailers that have been thriving as American consumers spend a lot less than before.

Cramer said the strength in the discount retailers can be attributed to the increased cost of rent and healthcare in our country, which has completely offset the benefits usually seen by lower gas prices at the pump.

If investors would visit their localDollar Tree (DLTR) or Dollar General (DG) , they would understand why these stocks shot up 12.7% and 4.6%, respectively, today.

Then there's Costco, which has become a coiled spring as customers wait for the transitions from American Express (AXP) to Visa (V) to complete later this month.

Cramer also gave the nod to TJX Stores (TJX) , which benefits from ailing department stores selling off their excess inventory, and Walmart (WMT) , which is turning around its operations.

All of these deals are here to stay, Cramer concluded, which is why these stocks should be bought on any market weakness.

New on the 'Wall of Shame'

In a special segment, Cramer added a new name to his "Wall of Shame" list of the worst executives in America. That name was Michael Ferro, chairman of Tribune Publishing (TPUB) .

Cramer said while Ferro has only had the job for three months, he's singlehandedly done more damage than anyone ever to grace his Wall of Shame.

Tribune was spun off as an independent company in August 2014 and has pretty much been in continual decline ever since. After trading to a low of $7.52, Gannett (GCI) offered to purchase Tribune for $12.25 a share, a 63% premium. Ferro declined the offer. Gannett then countered with an offer of $15 a share, representing a 100% premium. Ferro again declined.

With the newspaper business dying a slow and painful death, Cramer said he can see no reason why Ferro clings to hopes of a recovery, and by declining the takeover bid has done an incredible disservice to his shareholders.

Lightning Round

In the Lightning Round, Cramer was bullish on Time Warner (TWX) , Mitek Systems (MITK) , Trinseo (TSE) and Intuit (INTU) .

Cramer was bearish on GW Pharmaceuticals (GWPH) , InterOil (IOC) and Yirendai (YRD) .

Am I Diversified?

In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.

The first portfolio included Allergan (AGN) , Cisco Systems (CSCO) , Dollar General, Domino's Pizza (DPZ) and Etsy (ETSY) .

Cramer said this portfolio had "perfect" diversification.

The second portfolio's top holdings included Apple, Alphabet (GOOGL) , Exxon Mobil (XOM) , Facebook (FB) and Walt Disney (DIS) .

Cramer said this portfolio can't have Facebook and Alphabet along with Apple. He suggested adding Bristol-Myers Squibb (BMY) and General Electric (GE) to replace Facebook and Alphabet.

The third portfolio had RPM International (RPM) , Kraft Heinz (KHC) , Bristol-Myers Squibb, Apple and American Electric Power (AEP) as its top five stocks.

Cramer blessed this portfolio as diversified.

The fourth portfolio's top stocks were NextEra Energy (NEE) , MetLife (MET) , L Brands (LB) , Alcoa (AA) and Yum! Brands (YUM) .

Cramer said this portfolio also had "perfection."

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

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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, AEP, AGN, FB, GE, GOOGL, KHC and COST.