This week's move by General Electric  (GE)  to replace CEO Jeffrey Immelt with GE Healthcare President John Flannery makes the stock a buy, according to Jim Cramer.

"The change is welcome," Cramer said during an exclusive conference call with members of his Action Alerts PLUS club for investors. "Flannery will make the tough cuts that Immelt seemed incapable of making. We're looking for $2 billion in savings."

Cramer, whose charitable trust owns GE stock, said he had previously been frustrated with the company to the point of wanting to dump the name. "On our last call I talked about how I wanted dearly to sell the stock of General Electric, but I feared that the company would replace their CEO right after I did and the stock would pop." Sure enough, that's exactly what happened on Monday.

Cramer credited activist investor Nelson Peltz and his Trian Fund Management for helping to instigate the change -- and said the move makes the stock attractive.

Incoming GE CEO John Flannery.
Incoming GE CEO John Flannery.

"My feeling is that GE with its [3% yield] and the stock at $28 represents a buy," he said. "I know we're going to probably have to have some ratchet back of the earnings, but this man Flannery is from the Jack Welch school of the company -- and that's welcome news."

GE's shares rose 0.1% to $28.98 at Friday's close.

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