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Cramer Remix: Best investment trend in a changing economy

At one time the rising tide in the pizza industry seemed to lift all boats, but judging from the recent results reported by Domino's Pizza and Papa John's, Jim Cramer said that is no longer the case.

"Domino's just keeps outperforming anyway, and while I would stay away from the others, I think this stock remains one of the best plays on the stay-at-home economy," the "Mad Money" host said.

Cramer coined the term "stay-at-home economy" to reflect a shift for the stocks that are most successful on Wall Street. Often it is companies that allow people to spend more time at home — like Amazon and Netflix — that are most successful. He also attributed this as one of the main reasons for the collapse of the mall, as people would rather order online than leave the house to go shopping.

Most interestingly, in the pizza industry, Cramer noted starkly contrasting feedback from Domino's and Papa John's. Last week, Papa John's reported a mixed quarter with nothing but "far-fetched" alibis on its conference call. First, they blamed the shortfall on the NFL's declining ratings.

What really scared investors was when the company cited "continued competitive activity from all of the national players." Meanwhile, when Domino's reported it was a very different story, delivering a blowout quarter. It didn't fret about NFL or the weather, nor did it say it was under siege with a price war.

Ultimately Cramer determined that the pain in the restaurant industry now extends to pizza delivery, with the exception of Domino's, which has mastered the technology aspect of the business so well it can now triumph above the rest.

Bobby Murphy, co-founder and chief technology officer at Snap Inc., from left, Evan Spiegel, co-founder and chief executive officer of Snap Inc., ring the opening bell at the New York Stock Exchange (NYSE) with Tom Farley, president of the NYSE Group, during the company's initial public offering (IPO) in New York, U.S., on Thursday, March 2, 2017.
Michael Nagle | Bloomberg | Getty Images
Bobby Murphy, co-founder and chief technology officer at Snap Inc., from left, Evan Spiegel, co-founder and chief executive officer of Snap Inc., ring the opening bell at the New York Stock Exchange (NYSE) with Tom Farley, president of the NYSE Group, during the company's initial public offering (IPO) in New York, U.S., on Thursday, March 2, 2017.

Cramer has become used to the idea that stock exchanges and bankers tend to mess up large initial public offerings. So, when Snap went public and didn't get screwed up, he was shocked.

"The inability of the stock exchanges and the bankers themselves to handle high-profile hot merchandise has created a sense of fragility about the whole asset class and turned a lot of people off to stocks just when they were beginning to gather a full head of steam with the public," the "Mad Money" host said.

Snap made its debut in a 200 million share public offering priced at $17 a share on Thursday, and began trading at a $7 premium, at $24 a share on the New York Stock Exchange. While some investors may regard the stock as being hopelessly overvalued, Cramer recognized that it could have played havoc on the entire market if something had gone wrong.

Box CEO Aaron Levie said that when his company went public in 2015, Wall Street didn't really understand his company. He quickly learned the importance of having a predictable strategy.

Box's IPO was highly anticipated when it debuted on the stock market. Shares closed 66 percent above their IPO price in the first day of trading. Likewise, Snap went public on Thursday, opening at a $7-per-share premium to the $17 initial price for the offering.

"My message to Snap was certainly make sure that you drive predictable consistent growth, and you over-communicate what makes you different, and then ultimately Wall Street will really understand the story," Levie said.

Aaron Levie, co-founder and chief executive officer at Box Inc., speaks in Los Angeles, Feb. 19, 2014.
Patrick T. Fallon | Bloomberg | Getty Images
Aaron Levie, co-founder and chief executive officer at Box Inc., speaks in Los Angeles, Feb. 19, 2014.

Platform Specialty Products was created four years ago as a special purpose acquisition company by Martin Franklin, the former CEO of Jarden. This type of company is what Cramer often refers to as a "rollup", a company that exists for the purpose of acquiring other companies.

Unfortunately in 2015, these stocks were crushed as investors realized that the Fed would soon raise rates, making it more expensive for the companies to borrow money.

However, Platform Specialty Products has begun to make a major comeback, as the stock is up 34 percent so far this year. Cramer spoke with the company's CEO Rakesh Sachdev, who said Platform used 2016 as a time to execute.

"We bought several companies as you know coming into 2016. We wanted to integrate these companies, which is what we have done successfully and we have become very, very customer focused," Sachdev said.

Usually all of the great companies on the stock market lose their appeal quickly when investors crowd into the stocks, but Cramer found three fantastic stocks that are off-the-radar for most.

Priceline, Burlington Stores and Broadcom haven't missed on earnings in ages, yet they don't get the street cred they deserve because they aren't as sexy. Most investors consistently write them off , with one foot out the door on the assumption that they will disappoint when they report.

"They are the unsung heroes of this earnings season," he said.

In the Lightning Round, Cramer gave his take on a few stocks from callers:

GlaxoSmithKline: "It pays you a 5 percent yield to wait until they get it together, which I think eventually they will. So, I'm not going to tell anyone to sell that one."

Prudential Financial: "PRU has had a very, very big run. The insurers are very strong stocks but I have no edge to buying PRU up here after that big run. I do like Chubb."