Cramer Remix: Why bank stock book values are nonsense

There's something bizarre happening with oil stocks—but Jim Cramer likes what he is seeing.

Every time oil goes up, oil stocks go with it. When crude goes down, the corresponding stocks go down less. Then oil goes back up, and new highs are reached in the oil stocks. All that means they are continuing to inch higher and higher.

"This is a new dynamic where we recognized that no matter what happens in this country, there are forces overseas that are truly driving the bus," the "Mad Money" host said. Simultaneously, "the shale depletion rate picks up, making the majors more valuable and the independents more vulnerable."

The most impacted group from the rise in oil and gas are the banks. Many have an extensive amount of energy exposure, yet Cramer noted that the banks are trading at levels that suggest the book value is nonsense.

Cramer recommended Wells Fargo as the best option from the banks. It was initially pulled down by oil, and could move back up with it.

"With the downside of oil defined, and the up side meaning less to the stocks, there is a lot to like here," Cramer said.

'Robbing Peter to pay Paul'

Jahi Chikwendiu | The Washington Post | Getty Images

All the wrong stocks rallied on Monday, according to Cramer. There is a specific combination of stocks that create a rally that can last, such as the big-cap companies with a strong international presence.

That didn't happen on Monday, which Cramer interpreted that as a sign that this move may not have much staying power.

"Not until we get fresh money, not until more investors resurface and the love affair with growth stocks comes back, will we see a really good rally rather than just an OK one that can be taken away," Cramer said.

The large financials, technology and health care stocks make up a large percentage of the S&P 500 Index. When those sectors go higher, that adds fuel to the market.

"Today's move was much more of a robbing Peter to pay Paul scenario," Cramer said.

After 17 years of featuring American Express, Costco on Monday officially began accepting only Visa and debit cards. With millions of Americans impacted by the change, Cramer dug deeper to find out how to make a profit for portfolios nationwide.

"This is the kind of investable story that is easy to notice in your everyday life. But that doesn't mean you should immediately buy Visa and sell American Express the moment you get home from Costco," Cramer said.

Costco generated $116 billion in revenue in 2015, with much of that coming from credit cards. Additionally, over $10.5 billion in receivables from Costco's AmEx cards has now been acquired by Citigroup.

One would think that Visa stands to benefit the most in this scenario—but maybe not.

"I think this switchover is actually a bigger win for Costco than it is for Visa," Cramer said.

The deal is expected to save Costco up to $220 million, due to lower interchange fees. Additionally, Costco's new Visa rewards cards give customers a better deal than the old AmEx cards, which could prompt them to shop at Costco more frequently.

This stock 'is worse than Tiffany'

Bull and bear
Kameleon 007 | Getty Images

The jewelry business has also suffered, with both Signet Jewelers down 25 percent for the year and Tiffany down 25 percent in the same period.

What the heck happened?

"With Signet's stock now performing even worse than Tiffany's of late, we have to conclude that the problem here is with the jewelry business in general," Cramer said.

Ultimately, Cramer found that neither stock is worth investing in. Signet could have more upside, but with credit-portfolio worries associated with the company he doesn't know how bad things really are. Until he is sure about the downside, he said to stay away from both.

Lately one of Cramer's favorite CEOs, Deb Cafaro of Ventas, has come under siege.

The health care real estate investment trust was hit with various analyst downgrades and negative newspaper articles. Yet, despite the news, the stock has refused to come down. In fact, Ventas is up 23 percent for 2016.

"Now that we know the Fed is on hold, I bet it can continue to move higher," Cramer said.

So, regardless of worries over growth slowdown and oversupply of senior housing, Cramer still believes in Cafaro. The 4.2 percent yield is also attractive, thus he thinks Ventas is a buy into any kind of pullback.

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

Micron Technology: "I think Micron is going to slowly come back. It's kind of like Advanced Micro Devices. There's a poll, so it comes back. I don't know, could it get to $15? Yes it probably could."

Opko Health Inc: "I saw that Phil Frost [CEO] bought some more stock ... that last acquisition really did kill the stock, but I do believe in the company."