Cramer Remix: The energy deal that could bring fortunes to shareholders

  • Jim Cramer tracks a major yet under-the-radar merger in the natural gas space.
  • He also takes a second look at the Amazon-Whole Foods deal.
  • In his lightning round, he suggested a petroleum refiner instead of one of the callers' stocks.

While Wall Street continues to reel from Amazon's monumental bid for high-end food retailer Whole Foods, Jim Cramer found a major natural gas deal that fell under investors' radars.

The "Mad Money" host looked into petroleum and natural gas giant EQT buying Rice Energy for $6.7 billion, saying it was a major win for EQT shareholders.

"With natural gas at $3, a dollar above where it was last year, and Rice's $1.12 all-in cost of production, this is a remarkable deal that will make fortunes for EQT's shareholders," he said.

And despite the market's animosity for oil and gas as a sector, Cramer said there is more opportunity there that meets the eye.

"This EQT-for-Rice deal shows us that portfolio managers can shun the group all they want. It just creates the values that are obvious to the companies themselves, who are happy to do some buying at prices well below the cost of drilling itself," Cramer said.

Tim Cook, CEO, holds an iPad Pro after his keynote address to Apple's annual world wide developer conference (WWDC) in San Jose, California, U.S. June 5, 2017.
Stephen Lam | Reuters
Tim Cook, CEO, holds an iPad Pro after his keynote address to Apple's annual world wide developer conference (WWDC) in San Jose, California, U.S. June 5, 2017.

As technology stocks bounced on Monday following several days of selling, Cramer also addressed the power of buying when stronger sectors see momentary declines.

"Every time you think they've buried technology stocks, it turns out to be precisely the moment to buy them. Every time you think they've abandoned the growth stocks, no, they're right back there. Every time you've written off the industrials or decided the latest Fed rate hike means nothing to the banks, the money flows right back into the group," Cramer said. "The result? A bountiful day ... that allowed us to overlook the continued supermarket carnage in the wake of the Amazon-Whole Foods tie-up."

Cramer started with the bank stocks. The group got two major tailwinds from the Treasury and the Federal Reserve last week in the form of regulatory relief and an interest rate hike.

Cramer said these were undeniable boons to the banks' earnings, as deregulation will help the banks reduce overhead and higher rates mean they can earn more on deposits.

Lloyd Blankfein, CEO and Chairman of Goldman Sachs.
Adam Jeffery | CNBC
Lloyd Blankfein, CEO and Chairman of Goldman Sachs.

Then, in a wide-ranging interview with Goldman Sachs Chairman and CEO Lloyd Blankfein, Cramer spoke to the CEO about the 2008 recession, his Twitter use, and the state of the economy.

Although many investors are still uneasy about the state of the global economy, Blankfein said things actually seem to be looking up.

"I'd say things are pretty good," Blankfein told Cramer on Monday. "If you looked at things statistically, you looked at the numbers, you looked at the metrics, [the United States] at full employment, low energy prices, growth – a lot of the metrics are all positive."

Blankfein argued that areas of the world like China and Europe are seeing at least some growth, and while it is not anything major, it is not bad given what many in the market would expect.

Amazon-Whole Foods: Take Two

Finally, Cramer took another look at the pending $13.7 billion deal between e-commerce titan Amazon and grocery chain Whole Foods to see how Amazon could use it to continue building its retail empire.

Cramer said Amazon would do to Wal-Mart exactly what Wal-Mart did to mom-and-pop businesses around its locations when it first gained traction.

"Amazon isn't just any low-cost producer," he said. "It has tremendous artificial intelligence capabilities that let it figure out what you want, something that grocers have been woeful at. It has Amazon Prime, which can easily offer deals that would be unthinkable from, say, Kroger's point of view."

Plus, with Amazon's voice-activated devices and checkout technology, ordering and shopping will undoubtedly be streamlined to become easier than ever, the "Mad Money" host said.

"Believe me, there's nothing theoretical about what Amazon's about to do to these industries. It's now a reality for everyone from Costco to CVS to Wal-Mart and Target and the pain? It hasn't even begun yet," he said.

Lightning Round: A Tale of Two Marathons

In Cramer's lightning round, he flew through his take on caller favorite stocks, including:

Marathon Oil Company: "I'd like to talk about Marathon [Petroleum Corp]. I think that's the much better one. That's the refiner. That's a good situation. Not Marathon Oil."

Ultra Clean Holdings: "Yeah, this is just a great ancillary semiconductor play. I've liked it for a long time. I think it's a buy."

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