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Cramer Remix: The stocks surprisingly at risk under Trump

While the market continued to roar higher on Tuesday, Jim Cramer couldn't ignore the cracks starting to appear in the Trump rally, especially for defense stocks.

Donald Trump's tweet that claimed the cost of Air Force One that Boeing is building to be more than $4 billion caught Cramer's attention on Tuesday and what it could mean for risk in defense stocks. While the $4 billion figure was unconfirmed, the real issue for Cramer was suasion, or what President Theodore Roosevelt called "bully pulpit."

Boeing has $18 billion in contracts with the Defense Department, which is approximately 20 percent of its business. While Trump didn't say or do anything to suggest those contracts were threatened, Cramer was confident that Boeing got the message.

Maybe Boeing will roll back the price of the plane, or maybe this debacle amounts to nothing.

"Either way, it is a brand new risk you need to be aware of if you own the defense stocks," the "Mad Money" host said.

President-elect Donald Trump walks out of an elevator speak to the media at Trump Tower on December 6, 2016 in New York City.
Getty Images
President-elect Donald Trump walks out of an elevator speak to the media at Trump Tower on December 6, 2016 in New York City.

Shares of TherapeuticsMD spiked 12 percent on Tuesday after the company announced strong phase 3 results for its lead drug which helps to alleviate symptoms of menopause.

Cramer spoke with CEO Robert Finizio, who explained that for the first time, they have been able to co-formulate two natural hormones that decline in a women's body that cause menopause side effects into a single dosage form.

There are approximately, 18 million prescriptions for natural unapproved hormones that are sold by either independent or community-based pharmacies that are sold in a compounded form. Thus, a natural single-dosage form could be chosen more often over the current synthetic options available.

"Doctors and women are choosing these hormones over the FDA approved hormones that are proven safe and effective, but are synthetic," Finizio said.

Many investors agree that the economy could accelerate under a Donald Trump presidency. If that happens, Cramer expects serious impact on interest rates, the dollar and inflation.

"We need to watch all three in order to make sure the Trump rally remains on track," Cramer said.

To gain further insight on what the charts predict for the future, Cramer spoke with technician Rob Moreno, who is the publisher of RightViewTrading.com and is a colleague of Cramer's at Real Money. Moreno dug deeper by looking at three ETFs that are designed to track each category.

Ultimately, the fundamentals and charts indicated to Moreno that long-term interest rates are headed higher, the dollar will continue to rally and inflation will once again return.

"That is how you know the economy has got its growth groove back, and why you need to keep watching all three of these charts — perhaps the three most important charts in the book," Cramer said.

Scott Sheffield, CEO of Pioneer Natural Resources
Adam Jeffery | CNBC
Scott Sheffield, CEO of Pioneer Natural Resources

Cramer has interviewed countless members of the energy industry, but he says there is only one guy who correctly called the bottom for crude and predicted the trajectory for oil prices, RBN Energy President Rusty Braziel.

Unfortunately, Braziel thinks an administration under President-elect Donald Trump means the oil and gas industry is going to get things done — which could be bad news for oil prices.

"Even under the Obama administration they got a lot of things done. They got so many things done that they crushed the price of oil and gas ... now we're going to get more things done. Does that make you a little uncomfortable?" Braziel said to the "Mad Money" host on Tuesday.

Looking at the forward curve, Braziel predicted that the price of oil will be $56 a barrel by 2021.

Cramer also got a take on what the OPEC agreement means to players in the oil industry, such as Pioneer Natural Resources.

Pioneer owns vast amounts of acreage in the Permian Basin in Texas, and also has holdings in the Eagle Ford shale and the Rockies.

Pioneer CEO Scott Sheffield spoke with Cramer, and said the Sprayberry/Wolfcamp shale is so large; it is now the second largest oil field in the world.

"Nobody believed me three years ago," Sheffield said. "Now we have over half the U.S. rigs in the Permian Basin. Most of the rigs that are drilling in the world today are in the Permian Basin. And so it's ready to take off, especially with this recent OPEC agreement."


In the Lightning Round, Cramer provided his take on a few stocks from callers:

Western Digital: "They pronounced an unbelievable number this very evening, you know I think the stock is cheap. I recommended last week that they actually buy Micron. Both Seagate and Western Digital, ever since Western Digital bought Sandisk, it has been on fire. I like that stock very much."

Seaspan Corporation: "I don't like the container ships. I always think that the dividend is what I call a red flag; a challenge flag by every coach."