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NEW YORK (TheStreet) -- When expectations are low you may lose money no matter what a company has to say, Jim Cramer told his Mad Money viewers Tuesday. Better to stick with companies that have low expectations, or even no expectations, where any good news will be met with big gains.

Cramer said Apple (AAPL - Get Report), a stock he owns for his charitable trust, Action Alerts PLUS, is one such low-expectation company. Apple's stock trades as a deep discount to the markets, yet today the company's partnership with IBM (IBM - Get Report) is sending shares higher in the after-hours.

Two more Action Alerts PLUS names, JPMorgan Chase (JPM - Get Report) and Goldman Sachs (GS - Get Report), also fit this bill, Cramer continued. He said both companies trade at just 10 times earnings, far less than the S&P 500's 17 times multiple. Yet, with no one expecting anything from these two financials, both managed to surprise to the upside, sending shares higher.

Compare that to another bank, Wells Fargo (WFC - Get Report), a stock with high expectations that had run up ahead of its earnings, and Cramer said its easy to see why shares got hit on its release. Johnson & Johnson (JNJ - Get Report), another Action Alerts holding, also fell because of this high-expectation pattern.

Yes, there are some over-inflated sectors of the markets, Cramer concluded, but there are also lots of companies that no one is expecting to do well, and those companies always seem to be the ones surprising us with good news.

Speculating on Janet Yellen

Was Federal Reserve Chair Janet Yellen out of line when she singled out social media and biotech stocks as having too much speculation? Cramer said he doesn't like it when the Fed publicly dissects the markets. Words don't matter, but actions do.

Cramer said if Yellen really thinks there's too much speculation in the markets, she has a great tool in her arsenal -- raising the margin requirements. By increasing the cost of borrowing money from a broker, the Fed could easily tamp down speculation, Cramer continued. If Yellen is concerned now, where was she four to five months ago when speculative biotech and cloud computing stocks were a lot worse than they are today?

Yellen's cautionary comments reminded Cramer of then-chair Alan Greenspan's infamous "irrational exuberance" comment in 1996. Sure, those comments did lower the markets for a few weeks, but then the markets rallied for another three years.

Cramer said what the Fed says doesn't really matter, but what it does matters a great deal.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Tim Collins over the charts of (AMZN - Get Report) and Netflix (NFLX - Get Report), two cult stocks that remain very highly valued.

According to Collins, Amazon's daily chart shows the stock stuck in a channel after a big decline in April and May. However, over the past three days, Amazon is up over $30, above its resistance level, which may now act as a floor of support. The MACD momentum indicator is also signaling a bullish crossover, another positive sign.

But turning to Amazon's weekly chart, Collins got a less-confident picture. He noted the stock's six-month pullback forms a flag when looking at its prior 23-month rally, which is bullish, but the MACD and relative strength indicators are not entirely convincing. He concluded the weekly chart was bullish until proven otherwise.

Netflix was harder to decipher for Collins because its daily chart showed a bearish head-and-shoulders pattern but its weekly chart showed a bullish inverse-head-and-shoulders. He felt the stock could go either way, making a big swing in whichever direction it ends up choosing.

Cramer told viewers that both stocks should be considered speculative given their high valuations. He felt Amazon was the better of the two but noted that neither offers the consistent, profitable growth that a blue-chip stock would offer.

Executive Decision: Strauss Zelnick

For his "Executive Decision" segment, Cramer sat down with Strauss Zelnick, chairman and CEO of Take-Two Interactive (TTWO - Get Report), the game-maker that's seen its stock rally nearly 30% since Cramer last checked in six months ago.

Zelnick said Take-Two continues to execute on its strategy of meeting the consumer wherever he or she wants to play and remaining flexible with all of its game titles to make that happen. If the consumer is excited, "then we're excited," Zelnick continued.

The fall season is shaping up to be a big one for Take-Two, said Zelnick. October is a big month for new releases as well as existing titles coming to new platforms.

When asked about the company's cash position, Zelnick said it has enough cash to finance its organic growth as well as possibly grow through acquisition. The company is also exploring the possibility of returning extra cash to shareholders.

Finally, when asked whether Take-Two would consider expanding its titles in non-traditional ways such as theme park attractions, Zelnick replied the company owns all its intellectual property and would certainly consider such a move, although it would likely not finance such an effort internally.

Cramer called Take-Two a cheap stock with a strong upcoming release schedule.

Lightning Round

In the Lightning Round, Cramer was bullish on Bristol-Myers Squibb (BMY - Get Report), Merck (MRK - Get Report), LinnCo (LNCO), Perrigo (PRGO - Get Report), Rite Aid (RAD - Get Report), Enterprise Products Partners (EPD - Get Report), Travelers Companies (TRV - Get Report) and Cisco Systems (CSCO - Get Report).

Cramer was bearish on Akamai Technologies (AKAM - Get Report), Vivus (VVUS - Get Report), Lannett Company (LCI - Get Report), Windstream (WIN), General Electric (GE - Get Report), Chubb (CB - Get Report) and Alcatel-Lucent (ALU).

Off the Tape

In his "Off The Tape" segment, Cramer sat down with Miles Penn, co-founder of the startup, MTailor, which promises to deliver 10,000 variations of custom-fitted dress shirts with nothing more than your mobile phone.

Penn said his goal was to provide well-fitting clothes without the hassle of shopping. Over a year later, with patented technology, MTailor launched and has proven to be 20% more accurate than visiting a tailor in person.

When asked how the company is getting the word out, Penn said advertising on Facebook has been a big win so far. People are anxious to try out the company's innovative mobile application that one day could provide a lot more than just shirts from the comfort of your home.

Cramer said while MTailor is only a startup, with just its two co-founders as employees, it's innovative ideas like these that become tomorrow's next hot IPO.

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

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

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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, GE, GS, JNJ and JPM.