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Cramer's been concerned about the market for a while and has told viewers to watch the price action carefully. Well, now it might be time to act if you haven't already, he said.
"If you have big profits, ring the register," Cramer said. "If you're already in cash, sit tight."
With militants taking over Iraq's second-largest city, Cramer is concerned about the effects on oil and how the U.S. will react.
"So what will it be? Airstrikes? Drones? Soldiers? Boots back on the ground in Iraq? That's uncertainty writ large. And if the market hates anything it's uncertainty," Cramer said.
Iraq has been the cause of not one, but two bear markets, he pointed out -- Saddam Hussein's invasion of Kurait in 1990 and the U.S. invasion of Iraq in 2003.
Even if this current storm blows over, Cramer still expects oil prices to spike, "easily" increasing by 10%, which would act like a tax on the U.S. economy.
He suggests sitting on the sidelines for now.
Break Up Bob Evans
Continuing with his long list of companies that could benefit by breaking themselves up, Cramer turned his sights to Bob Evans Farms (BOBE) , the sleepy restaurant operator that has 561 locations in 19 states, mostly focused in the midwest.
Cramer said Bob Evans already has an activist investor, Sandell Asset Management, nipping at its heels to unlock value for shareholders. How? It turns out that Bob Evans also has a frozen foods business that looks very similar to the hot commodity we know at Hillshire Brands (HSH) . Cramer said that using a Hillshire valuation, Bob Evans' frozen foods biz could fetch as much as $600 million.
But that's not all. Activists are also pushing the company to sell much of the real estate its restaurants sit on under a leaseback agreement. That, too, would bring millions into the company's coffers.
Furthermore, Bob Evans could also franchise its restaurants, generating a huge influx of cash by converting their company-owned stores over to the new model. Add up all the options and, Cramer said, Bob Evans' restaurants are worth $1.1 billion, or $1.7 billion when added to the frozen foods.
That's $65 a share, or 36% more than shares trade today. Cramer told viewers to consider buying Bob Evans after it reports next Tuesday because the quarter will likely be bad and investors can get in on the cheap.
When a stock can't be stopped by even an important downgrade, that's a sign you've got something special, Cramer told viewers. That's exactly what happened with Apache (APA) - Get Report, Cramer explained -- the company received a big downgrade, but shares continued to roar higher anyway.
Shares of Apache have been on a tear since mid-March, rising from $79 to $96 a share because the company is in total turnaround mode, selling off nearly $8 billion of foreign assets to double down on good, old, American shale. The company now gets over 60% of its production from the U.S. and is growing that production at 15% to 18% a year.
Cramer said Apache is benefiting from higher oil prices and the company's assets are increasing in value as new pipelines are finally helping to get America's shale gas to market more efficiently.
Cramer was also bullish on Apache's LNG export terminal currently being built in Australia. He said when that terminal comes online in 2016, it will be selling natural gas into Asia, the highest priced gas market.
Yet, despite all these positives, Apache is being downgraded and is trading at just 13.5 times earnings. Its peers are seeing valuations between 20 times and 37 times earnings. Cramer said Apache shares could easily see $120 a share and beyond.
Switching to Arista
Is there a break in the clouds coming for Arista Networks (ANET) - Get Report, a network equipment maker that came public June 6? Cramer said he thinks so as the company has real earnings and was brought to market at a fair valuation.
It's no secret the cloud computing stocks have fallen out of favor over the past few months, Cramer told viewers, but now that the IPO window has essentially closed, the few deals that are coming public -- like Arista -- have been well received. Shares popped 28% on their first day of trading and are up another 18% since, he noted.
Cramer said Arista has essentially built a better mousetrap than its chief rival, Cisco Systems (CSCO) - Get Report, Internet switches that are optimized for cloud computing thanks to a proprietary operating system.
That's how the company was able to grow earnings by 92% last quarter, yet the company only has 6% market share compared to Cisco's 70%.
Given that Arista was founded by former Cisco execs, Cramer said he expects the stock to continue to do well as the company leapfrogs the entrenched players with better technology.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer said he's listened to thousands upon thousands of earnings conference calls over the years, and while many are predictable, this quarter's call from Restoration Hardware (RH) - Get Report was different.
Cramer said it was clear from the company's remarks that it understands the market simply doesn't understand the company. Yet, despite the confusion, it painted a confident picture of how Restoration Hardware is and will continue to redefine home luxury for many years to come.
This quarter's accelerating revenue growth is not a fluke, Cramer concluded. This company knows what it's doing.
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-- Written by Scott Rutt in Washington, D.C.
To email Scott about this article, click here: Scott Rutt
At the time of publication, Cramer's Action Alerts PLUS had no position in stocks mentioned.