×

Cramer Remix: Brexit & oil are the real deal

With worries of a Brexit and falling oil prices on his mind, Jim Cramer is ready for anything. But there was one event that caught his attention on Thursday, which made him confident that crude isn't likely to fall much further.

"We live in a world where individual stocks are playthings for the hedge funds, too small to matter. But Brexit and oil? They are the real deal, palpable to all the super-rich trigger pullers and good news on Brexit ... battled mightily against the dive in oil," the "Mad Money" host said.

Cramer often refers to $50 as the breakeven price for oilfields in the U.S. When crude hits that level, companies that have drilled wells and then capped them, will suddenly begin to drill again. Additionally, many cash-strapped oil producers sold oil futures at a premium to $50 to raise money and pay the bank.

Pioneer Natural Resources purchased 28,000 acres in the Permian Basin for $435 million from Devon Energy. It also immediately announced plans to increase drilling by 42 percent, bringing its rig count to 17 from 12.

Considering that the price of oil was hammered last Friday when the Baker Hughes rig count showed just an additional three rigs coming online, the news of Pioneer pretty much crushed the hopes of anyone who believed oil would go back to $60.

Crude oil sprays from a well bucket
Ulet Ifansasti | Getty Images
Crude oil sprays from a well bucket

In an environment of uncertainty surrounding oil and the U.K., Cramer also turned to stocks like Henry Schein that offer consistency and the ability to thrive even in times of international turmoil.

Henry Schein is the largest distributor of dental and veterinary products worldwide, and is also a supplier of vaccines. It also has more than 40 percent market share, and has grown leaps and bounds by making various small acquisitions over the years.

Cramer spoke with the company's chairman and CEO Stanley Bergman, who shared a major transformation occurring in the dental industry.

"What we have been doing actually for many, many years is introducing dentists, physicians and veterinarians to new technology. We are moving from analog dentistry to digital dentistry right now in front of our eyes," Bergman said.

Chipotle's stock has fallen hard this month, and Cramer thinks that this is due to Whole Foods getting hit with a with a notice of "serious violations" from the Food and Drug Administration (FDA).

"It almost seems like there is a jinx to those companies trying to do the right thing when it comes to food processing, the jinx being worries that maybe organic and natural means unsafe to eat because it is not processed into oblivion first," Cramer said.

Whole Foods and Chipotle both are known for their distrust of the traditional food chain and the chemicals used to process food. Take one look at the ingredients in a Chipotle burrito: there are obvious differences between it and a Taco Bell burrito.

But Cramer is not giving up on Chipotle for the long term.

For example, both Yum Brands, the parent of Taco Bell, and Jack in the Box's Qdoba have previously had health scares that were far worse than Chipotle's.

In fact, both companies were able to bounce back within 18 months of the incidents. That gave Cramer confidence that Chipotle could do the same.

A employee sprinkles cheese on a burrito at a Chipotle Mexican Grill restaurant in Hollywood, California.
Patrick T. Fallon | Bloomberg | Getty Images
A employee sprinkles cheese on a burrito at a Chipotle Mexican Grill restaurant in Hollywood, California.

One stock that has been on fire is Splunk, the software solutions play with an operational intelligence platform that allows machine data to be more accessible.

After LinkedIn and Tableau reported weak data in February, Splunk's stock tanked to $30 from $47 in a week. Since then the stock has gotten its groove back, and closed at $58 on Thursday.

Meaning, for those investors that got in at the February lows, they would have made more than a 90 percent gain.

And while the company is not yet profitable because it has been spending money in order to grow, it reported impressive earnings a few weeks ago with positive free cash flow. Management also raised its full year guidance. To learn more, Cramer spoke with Splunk's CEO Doug Merritt.

"One of the beauties of Splunk, we are a super-flexible data layer that can work with non-structured convoluted data, and add value to it. So we are in this enviable position where we get to add value to all different types of technology, and the more types there are and the more convoluted the data — the better it is for Splunk," Merritt said.

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

Broadcom Limited: "Broadcom is every bit as good as Von Miller. We are not talking about Sanchez here, buy, buy buy. I think it is one of the best there is."

EMC Corporation: "You should ring the register. Ka-ching, ka-ching!"