Mad Money

Cramer Remix: Why Glencore is my biggest worry

Cramer: Why Glencore is my biggest worry
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Cramer: Why Glencore is my biggest worry

Jim Cramer watched as the averages plunged on Monday, yet again. To him it is almost as if everything that investors once liked they now hate, and everything they once hated they kinda-sort like. Not any more than that, this is why the market keeps getting hammered.

That is why the "Mad Money" host took the time to explain how and why things are hated, especially the groups that used to be liked.

The first hate group is commodity risk. China is not just slowing these days; its industrial demand appears to be exhausted. That means anything that helps to extract or produce commodities is performing terribly.

The second hated group on Wall Street is anything oil and gas, which is hated furiously right now. The dislike extends to every part of the oil complex. This includes independent oil and gas companies, big oil companies, service companies, master limited partnerships and pipelines. There is no escaping!

The absolute three worries of Cramer by far are Petrobras, Glencore and Volkswagen. Especially Petrobras, as it has $170 billion in debt, which will be extremely difficult to pay as the Brazilian real weakens against the dollar.

"Once again I cannot stress enough that Petrobras and Glencore are two of my three biggest worries about this market, with the third being Volkswagen and its conceivable rigging of the diesel emissions tests. All three could have unfathomable downside," Cramer said.

Read More Cramer: 5 worries driving the market lower

An employee walks past coal washing flotation cells, manufactured by Jameson Cells, a unit of Glencore Xstrata
Brent Lewin I Bloomberg via Getty Images

Cramer has finally reached the point where he can clearly see that the main force behind the market's bear phase is not just earnings. Investors are worried about credit, specifically pertaining to high-yield bonds.

"If your company needs debt in order to grow, then your stock is being punished, and there is not much that can be done except to watch the carnage, wait it out, or just take a loss," the "Mad Money" host said.

Cramer cited the case of XPO Logistics, the trucking company that visited "Mad Money" on Friday. CEO Bradley Jacobs confirmed that while the company is doing well, the stock is hurting.

The reason? It's because XPO is a roll-up company. That means it is a vehicle used by the CEO to buy other companies to grow or dominate an industry. XPO recently announced the purchase of Con-way, a giant trucking company, for $2.72 billion. This deal was right on the back of another large acquisition by XPO; it purchased European logistics company Norbert Dentressangle earlier in the year.

For now, XPO is stock in the vortex of the most hated group on Wall Street. Investors want as little risk as possible, and unfortunately these debt-financed deals are being viewed as toxic.

One day they will not be viewed as toxic, but that day is not here yet.

Read More Cramer: Stocks stuck in a vortex of hate right now

There was also big news announced by Alcoa on Monday, the maker of aluminum and high value-added aluminum based products. After years of building out Alcoa's value-added manufacturing business, CEO Klaus Kleinfeld decided to break the company up into two parts.

The first Alcoa business will be a commodity metals play, and the other will be a maker of high-value added engineered products. The market loved this move, as Alcoa's stock rallied 5.9 percent Monday.

Will this breakup work for the long-term? To find out, Cramer spoke with Kleinfeld.

"I would say depending on what you want; you have two very attractive companies. Both will be Fortune 500 companies. We've basically gotten them to scale and strengthen. They are both competitive, they have a different profile and in the future you have a choice between both of them," Kleinfeld said.

A worker at a factory operated by Alcoa.
Getty Images

GameStop is the world's largest videogame retailer, and a stock that has been absolutely on fire until about a month ago thanks to fantastic numbers and the company's diversification into various kinds of TV-, movie- and game-related goods.

However, the stock hit a wall recently with shares falling 8 percent in a single session after the company reported back on August 27. When Cramer took a look at the company's results, the numbers seemed very strong. But the company also gave guidance for next quarter that was regarded by many as being disappointing, which is why the stock dropped.

Was management conservative, or was the guidance worrisome? Cramer spoke with the company's CEO Paul Raines to find out.

"Jim we have been around a long time and we are going to continue to be very successful…The story that nobody talks about is gross margins expanded 110 basis points. So our business is healthy, we would love to talk about any of the segments but our business is very strong. I think unfortunately some investors have chosen to flee, but they will be back," Raines said.


Unfortunately Monday's market hammering took the good, along with the bad. So now Cramer is wondering what to do with a fast growing and innovative company such as Teladoc that had the misfortune of coming public this summer, right before the market took a nosedive and investors started to sell risky high fliers.

Teladoc is the largest player in the disruptive field of telehealth. It is the No. 1 purveyor of on-demand health-care services via the internet. Its platform already has 11.5 million members, and the company's revenue flew up 78 percent in its first quarter after going public. However, the company still continues to lose money as it spends in order to expand.

"I feel like this is the kind of concept that would have been embraced in a bull market, but unfortunately we are firmly in bear territory," the "Mad Money" host said.

Read More Cramer: Forever changing the way you see a doctor

In the Lightning Round, Cramer gave his take on a few caller favorite stocks:

Johnson Controls: "This company has so much going for it. It's got climate, which is a very good air conditioning company. It's a really really good battery business. And it doesn't matter right now because it's for sale because it's an industrial. We are not going to be able to pull the trigger on it at this level."

Jacobs Engineering Group: "Jacobs Engineering is perceived to be an energy stock, and we know the energy complex is still in free-fall so we are not going to be able to go near it. It's only down 18 percent, believe it or not that's relatively strong."

Read MoreLightning Round: Don't go near this stock