Cramer Remix: Brexit is the dumbest financial mistake I’ve ever seen

Jim Cramer researched the true cost of a British independence from the European Union (EU) and the results were staggering.

"Brexit was the dumbest financial mistake I can ever recall, a genuine Humpty Dumpty move, and all the queen's horses and all the queen's men probably can't put the union back together again" the "Mad Money" host said.

Trillions of dollars have been lost in value worldwide, and Cramer says it all was because the U.K. didn't bother to think things through. That is why he took the time to detail how stupid the vote really was, and just how unprepared the British government was for the results.

Cramer boiled the exit vote down to two issues: net fees that Britain pays to the EU and the immigration issue.

There have been talks of a do-over for the Brexit vote, but Cramer doesn't think that is likely. Whoever takes over as the next Prime Minister will need to slow things down to let the world catch its breath in order for the pound not to fall farther.

As for other countries following Britain's footsteps, Cramer doubts any other country would make the same dumb mistake.

"The financial penalty for leaving the EU is now so palpable that only the most extreme of xenophobic nations would even debate the issue" Cramer said.

Ultimately, Cramer found this to be the dumbest financial mistake he could ever recall. This one decision has caused British taxpayers to lose far more money than they would save from leaving the EU.

Leave the European Union campaigners wave banners near Parliament in London.
Stefan Wermuth | Reuters
Leave the European Union campaigners wave banners near Parliament in London.

Unfortunately, there just aren't enough sectors in the S&P 500 for Cramer to recommend buying stocks on the Brexit decline. The reality is that stocks are only back to where they were a little more than a month ago.

On Feb. 11, the S&P was at 1,829 and the Dow Jones industrial average was at 15,647. Those levels are not reasonable downside targets, though. Back then oil traded at just $26 a barrel and many commodity companies looked as though they would fail to pay their bills, which could have translated into huge losses for U.S. banks.

Those potential losses are now off the table, as many oil companies have re-liquefied balance sheets by selling stock. Oil is now at $46 a barrel, which is very far from $26.

"That means the sell-off we are currently experiencing is NOT related to U.S. credit, and that is what makes this storm worth riding out. There is no systematic risk here; our banks will come out winners, no losers when the smoke clears, and it always does," Cramer said.

And while stocks have been pulled down by the gravitational pull of a Brexit, Cramer found one bright spot in the market that managed to defy the pull of the averages and roar higher on Monday.

Twilio is the cloud-based developer of communications software that went public last Thursday at $15 a share. In a single session it managed to skyrocket to $28, a 91 percent gain.

"Twilio's huge first-day move suggests that some of these Silicon Valley unicorns are real businesses with real value, not just mythical creatures with absurd valuations, and the market may be willing to pay up for growth again," the "Mad Money" host said.

With this in mind, Cramer recommended investors to buy a portion of their position at current levels just in case the stock continues to skyrocket, and then wait for the stock to be dragged down by the next pullback before buying more.

Union Jack flags
Peter Nicholls | Reuters

Cramer also turned his attention to high quality U.S. companies that could continue to do well, regardless of what happens overseas.

One of those companies is IDEXX Laboratories, which makes veterinary testing equipment and is the world leader in diagnostic tools for animals.

IDEXX has been particularly strong because of its innovation. It spent a lot on R&D to create devices that detect kidney disease in cats and dogs and the first and only urine sediment analyzer. And as the Brexit sell-off roars on, Cramer estimated that no one would let their pet suffer just because the U.K. left the EU.

To learn more about the opportunity that IDEXX could present, Cramer spoke with the company's chairman and CEO Jonathan Ayers.

"Turns out that pets are moving from the barnyard to the house, to the bedroom. And in the case of cats, to the bed as 50 percent of cat owners said their cats slept with them 10 years ago and now it's 62 percent," Ayers said.

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

Synergy Pharmaceuticals: "I feel like if the data is good you're going to get a takeout bid. If the data is not that good I'm not sure what it's worth. We see with these things like Regulus, if they go right it's just unbelievably good. If they go bad, it's unbelievably bad. And that's why it's been so hard for me to opine on it because it seems very binary to me. And I don't like to comment on the binary. But obviously if the news is good, wow."

Charter Communications Inc: "I like Charter Communications. I happen to like the cable companies very much. This seems to be one of the best domestic businesses. You're in good shape."