Hassan said every turnaround story starts with people, then culture, then execution. All of those aspects begin with a company's CEO. He said if a CEO doesn't have focus and passion, then investors should steer clear. But in the case of many successful turnarounds, like those at Ford ( F), CEO Alan Mullaly clearly had the right skills to get the job done.

When asked about his role as non-executive chairman at Avon Products ( AVP), Hassan said Avon's new CEO is following his lessons from the book. He not only had the passion to accept the challenge in the first place, but he is now on the ground working the business and building the team that's needed to lead the company forward.

Turning to his home turf in the pharmaceutical world, Hassan said that it's clear the old way of developing drugs is no longer working, which is why all of the action has been in the smaller biotech companies. He said that some in the Big Pharma world see that change and are adapting, but others are clearly not.

Cramer said Hassan's new book is a must-read and said Hassan himself should be an inspiration to all.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer said that all too often individual investors have problems spotting stock market bargains. He said that unlike sales at your favorite retail store, in the stock market the discounts aren't always obvious and sometimes require homework.

Such was the case with Red Hat ( RHT), Five Below ( FIVE) and PVH Corp ( PVH), all of which reported Wednesday to underwhelming results, giving investors a terrific opportunity to buy, if they were able to spot the bargains.

Cramer said while the headlines about Red Hat spelled doom and gloom, on the conference call things weren't that bad. Meanwhile, Five Below may have had some supply chain issues, but that won't stop the company from being able to open time times as many stores in the coming years. Then there's PVH, which may need more time to turn around its Warnaco acquisition, but it certainly doesn't count the company out for good.

In all of these cases, Cramer said, investors need to be able to spot when the market's reactions don't match the fundamentals, and buy into the ensuing panic. Not always easy, Cramer admitted, but certainly profitable.

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

To email Scott about this article, click here: Scott Rutt

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At the time of publication, Cramer's Action Alerts PLUS had no position in stocks mentioned.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com 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 TheStreet.com, 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 TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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