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Cramer Remix: Savings all in cash? You're dooming yourself

As much as Jim Cramer loves eqities, he knows investors have lost trust in the stock market.

It was clear to Cramer that stocks are now a disgraced asset class when he saw a recent Bankrate survey that indicated real estate and cash as the most popular investments.

In the survey, 1,000 adults were asked what they would do with their money if they didn't need it for 10 years. A quarter said they would buy real estate, 23 percent said they would keep it in cash. Only 16 percent said they would put it into stocks, which was the same percentage as those who would choose to hide money in gold or precious metals.

"As someone who has lived and breathed stocks for most of my life, this is a horrendous finding. But it's not surprising," the "Mad Money" host said.

But that doesn't mean real estate and cash are better options. While real estate is perceived as reliable, it also lost a great deal of value in the housing collapse just seven years ago. As for cash, a 10-year time horizon sitting in a savings account will lose money versus the rate of inflation.

"If you can find stocks of high-quality companies with good balance sheets that pay strong dividends and have a bit of growth, I think you could crush the returns of those other asset classes over a 10-year period, provided you reinvest the dividends," Cramer said, "I just think you will do so much better in stocks."

NYSE New York Stock Exchange traders markets
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For several weeks, Cramer has been baffled by the mysterious moves reflected in the charts for Joy Global.

"I thought the chart was lying," Cramer said.

It turns out the charts were right all along, Komatsu Ltd. agreed to acquire Joy at $28.30 per share, a purchase price that is a 20 percent premium to Joy's closing price on Wednesday.

Snap-On shares fell more than 3 percent after reporting earnings. While it delivered a 13-cent earnings beat from a $2.23 basis, revenues came in lighter than expected. Investors greeted the results with disappointment, though Cramer attributed the fall to the fact that the stock had run up substantially in the past month. Thus, it was priced for perfection.

"I think this could be an instance where the market's harsh verdict may turn out to be wrong, in which case you might want to consider buying the stock into weakness," Cramer said.

Cramer spoke with Snap-On's chairman and CEO Nick Pinchuk, who explained that the company had strong growth in its tools division, but was hurt by the military and international aviation areas.

"The U.S. aviation was up, power generation was up. So, if you eliminated those two difficult areas the total business would have been up close to 5 percent," Pinchuk said.


Cans of Campbell's Tomato Soup
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Cans of Campbell's Tomato Soup

Campbell Soup Company has been on fire this year, with its stock up 20 percent, and its CEO Denise Morrison says this is just the beginning of leading a major change happening in the food industry.

According to Morrison, Campbell has been watching a change in the trend of venture capitalism, with more than 400 start-ups receiving $8 billion in VC funding since 2010.

"It's disruption going on in the whole ecosystem of food. From buy, make, sell, deliver. And it's pretty stunning. The entrepreneurial spirit has moved from the garage in high-tech, to the kitchen in food," Morrison said.

Domino's Pizza skyrocketed on Thursday after it blew away earnings, with higher-than-expected revenue and a strong 9.7-percent increase in domestic same-store sales. This was a big improvement from last quarter's lackluster numbers, thus the stock hit a new all-time high on Thursday.

Cramer spoke with Domino's CEO Patrick Doyle, who said he still felt good about the first quarter. This is why the company repurchased 1.8 million shares for approximately $224.1 million in the second quarter. He felt it was the best way to put cash to work and generate better returns for shareholders.

"Happily the second quarter came in very, very strong. So, we are really happy with the momentum of our business," Doyle said.

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

Snyder's-Lance, Inc: "Yes you keep it! Are you kidding me? This one comes in and it's like Smucker, I want to buy, buy, buy."

Hawaiian Electric Industries: "I think you have to just skee-daddle there ... It's not giving you anything to be in them for. I think it's time to run."