Cramer's 'Mad Money' Recap: Opportunities Abound (Final)

Despite weakness overseas, Cramer remained bullish on Eaton as the company still expects to see a record year on the strength of the U.S.

Wal-Mart Whacked

Should investors buy the 4.6% dip in shares of Wal-Mart (WMT) after it was discovered that the company bribed officials in Mexico? Cramer said in a competitive and uncertain market, absolutely not. In fact, Cramer said investors should use any bounce in Wal-Mart shares to sell the world's largest retailer and not look back.

Looking at the scandal through the eyes of an investor, Cramer said the fines Wal-Mart will likely endure as a result of these allegations will be minimal and likely not even material to the company's earnings. But there's a bigger issue at play, said Cramer, and investors cannot look at just the earnings in a vacuum.

Cramer said what matters most in this scandal are what the prosecutors at the Justice Department and SEC are thinking. It is an election year after all, Cramer reminded viewers, which means the desire to make an example of Wal-Mart is far higher than normal.

But regardless of how vigorously the executives are pursued, Cramer said the simple fact remains that it is difficult to run a company when your top executives are being investigated. Cramer said that Wal-Mart's board of directors and audit committee may have no choice but to jettison those involved, including the company's CEO, which would also create a lot of confusion for the company.

Cramer said that even without the Mexican scandal, Wal-Mart is not a loved company on Wall Street. There are far better retailers out there, he said, and investors should consider investing in those stocks long before they consider gambling on what could become years of uncertainty and distraction. "Wal-Mart share could go a lot lower," Cramer concluded.

Tumi & Splunk

"Resist the temptation of seductive IPOs," Cramer told viewers as he highlighted two recent IPOs that are now too hot to handle. He said that investors need to steer clear of high-end luggage maker Tumi (TUMI) and big data software provider Splunk (SPLK) after both companies came public last week.

Cramer said that Splunk shares took off like a rocket last week, soaring 109% on their first day of trading. The company is in a terrific market, big data, and has a fabulous management team and stellar 35% revenue growth. But none of that matters, reminded Cramer, if the price of the stock is wrong.