Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.


NEW YORK (TheStreet) -- The secret to higher stock prices isn't rocket science, Jim Cramer told his Mad Money viewers Tuesday -- it's common sense. Yet, common sense seems to elude some CEOs, which is why investors are fleeing their stocks.

There are two types of CEOs: those who are working for shareholders and those who only think they are. Among the former is Netflix (NFLX), a company that announced today it is making its first full-length film starring Brad Pitt, all while continuing to mull the possibility of a 5:1 or even at 10:1 stock split to attract new shareholders.

On the flip side is General Motors (GM), a stock Cramer has been selling from his charitable trust, Action Alerts PLUS. GM's CEO scoffed at even the possibility of a merger with Fiat Chrysler (FCAU), all while GM's stock seems stuck at $35 a share indefinitely.

Avago (AVGO) is taking a "get rich fast" strategy, making all sorts of mergers and deals to boost its share price, while Twitter (TWTR), another Action Alerts PLUS name, seems content with everyone being discontented with its lack of growth and direction.

Sears Holdings (SHLD) keeps shedding same-store sales while FedEx (FDX) boosted its dividend even those its shares are already up 80% for the year.

Clearly there are companies, and CEOs, who get it and those that don't, Cramer concluded, and shareholders are finally getting wise to those who don't.

Executive Decision: Bill Cobb

For his "Executive Decision" segment, Cramer sat down with Bill Cobb, president and CEO of H&R Block (HRB), which just reported an earnings beat of 6 cents a share after a successful tax season.

Cobb said H&R Block had a good year on all fronts, with do it yourself, or DIY, services in particular growing by double digits. The company continues to control expenses and paying a solid dividend of 2.5%.

One thing that is not going according to plan, however, is the company's planned sale of its banking division. Cobb said he and Block's shareholders are all frustrated with the regulatory delays, but he still expects the split to win regulatory approval eventually.

Turning to the issue of tax fraud, Cobb said the industry needs to do a lot more to protect taxpayers from having their identities stolen. H&R Block now offers a suite of services called Tax ID Shield, which will monitor and notify taxpayers if someone else files with the IRS using their Social Security number.

Retail Madness

The inconsistency in retail is enough to drive you mad, Cramer told viewers. With the sector getting too hard to predict it may be time to invest elsewhere.

The stock of Burlington Stores (BURL) had been on a tear the past two years, up 90%. But after a dramatic deceleration in same store sales, this once consistent earner fell 8.5% in the blink of an eye.

Then there's Five Below (FIVE), a stock which has caused investors to shed many tears in the past, which surprised to the upside, with shares up over 13% in just a week.

The high-flying Urban Outfitters (URBN) looks to have lost its mojo, down 11% over the past month, while Lululemon Athletica (LULUrallies 10.9%. What's next for either of these stocks? Who knows.

That's why Cramer said it's time to avoid the retail stocks unless that have a specific story to tell, like the successful turnaround at Target (TGT), an Action Alerts PLUS holding.

Off the Charts

In the "Off the Charts" segment, Cramer went head to head with colleague Carolyn Boroden over the direction of the broader markets.

Boroden accurately predicted the S&P 500's top on May 20 at 2,134 earlier this year when she pointed out a strong ceiling of resistance for the index at 2,138. She also noted that it took 91 months for the S&P to travel from its peak in 2000 to its peak in 2007. Since then it's been another 91 months leading into the May 20 peak.

Where does Boroden see the averages heading from here? She noted the markets are still in a healthy uptrend, long term, but they could see a sharp selloff if they're unable to breach the 2,138 ceiling or if they fall below a key level of support at 2,067.

Lightning Round

In the Lightning Round, Cramer was bullish on Wells Fargo (WFC), Innospec (IOSP) and TG Therapeutics (TGTX).

Cramer was bearish on Southwestern Energy (SWN) and Micron Technology (MU).

Off the Tape

In his "Off the Tape" segment, Cramer sat down with Mike Tuchen, CEO of the privately held Talend, a company offering open source data integration software and solutions for companies' big data needs.

Tuchen explained that Talend is helping companies migrate their data onto the next generation of database software. These databases, such as Hadoop, can handle more data faster, and are less expensive than legacy systems.

In addition to migrating data, Talend also helps companies clean up their data, fixing mistakes that will ultimately lead to better analysis later on.

When asked for an example, Tuchen noted Otto, a large retailer in Europe, which used Talend's services to study online shopping cart abandonment. Otto not only calculated how much money it was losing from customers not completing a purchase, but took it one step further and was able to predict abandonment and made special offers to keep customers engaged.

Cramer said Talend is another example of a pre-IPO company with a huge business opportunity.

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

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

At the time of publication, Cramer's Action Alerts PLUS had a position in GM, TGT, TWTR and WFC.

More from Jim Cramer

McDonald's, Nucor, Ball Corp.: 'Mad Money' Lightning Round

McDonald's, Nucor, Ball Corp.: 'Mad Money' Lightning Round

Fools Rush In: Cramer's 'Mad Money' Recap (Wednesday 4/25/18)

Fools Rush In: Cramer's 'Mad Money' Recap (Wednesday 4/25/18)

Investors Shouldn't Be Worried About Trump's Trade Tariffs: Ian Bremmer

Investors Shouldn't Be Worried About Trump's Trade Tariffs: Ian Bremmer

Veteran Foreign Affairs Expert Ian Bremmer Reveals How to Price Political Risk

Veteran Foreign Affairs Expert Ian Bremmer Reveals How to Price Political Risk

Jim Cramer: I've Liked Six Flags Entertainment Stock as an Income Producer

Jim Cramer: I've Liked Six Flags Entertainment Stock as an Income Producer