That all changes now that Schultz is back at the helm, Cramer said. He compared the company's turnaround to that of McDonald's (MCD), a stock he owns for Action Alerts PLUS. Coincidentally, McDonald's also brought back key executives to spur innovation and growth.

Bear is a firm that's now known for its exposure to mortgage-backed bond trading, Cramer points out, "and changing the CEO won't fix that." Bear Sterns is a stock that investors should not touch, Cramer said. The company has a lot more work to do to clean up its reputation and balance sheet. Cramer recommended Merrill Lynch (MER) as an alternative to Bear Sterns.

Sallie Mae's business is changing, Cramer said, with more students opting for grants instead of loans and more graduates defaulting on the few loans they have. Business is so bad, Cramer inducted CEO Albert Lord to the top spot on his "Wall of Shame."

Krispy Kreme, Cramer says, "is sinking, no matter who runs it." It has a history of no real earnings and closing stores because franchisees are losing money. Cramer said he "would not touch KKD with a 10-foot pole."