Cramer Remix: The unknown stock to buy on hyped-up trade war worries

  • "Mad Money" host Jim Cramer sets his sights on the power of U.S. chemical company Trinseo, and says this stock has legs and may not stop running any time soon.
  • Cramer also hears the latest from CEOs of Nucor and Domino's Pizza.
  • In the lightning round, Cramer makes a football analogy to warn investors about a bad stock.

Trade-war fear-mongering will undoubtedly be bad for some stocks, but on Monday, CNBC's Jim Cramer found a stock that could actually benefit from the madness: Trinseo.

A mid-cap company that makes plastic products, synthetic rubber and basic chemical components, Trinseo's stock is beloved by money managers.

When the "Mad Money" host inspected Trinseo for himself, he agreed, noting that the stock's price-to-earnings multiple was cheap and its business was so commoditized that even retaliatory tariffs wouldn't drastically affect its success.

"Sure, Trinseo has rallied dramatically, but the economy is still in amazing shape and this is exactly the kind of U.S.-based chemical company that does well when commerce is booming," he said. "I say Trinseo's a terrific buy, especially if we get another sell-off based on over-hyped trade war worries."

Safe stocks from tariffs

Facebook, Amazon, Netflix and Google apps (FANG) displayed on a smartphone.
Adam Jeffery | CNBC
Facebook, Amazon, Netflix and Google apps (FANG) displayed on a smartphone.

With President Donald Trump's recently announced tariffs on steel and aluminum imports dominating discussions on Wall Street, Cramer discovered something investors might not be seeing.

"Money flows from where it's scared to where it's safe and it does so in a hurry," Cramer said. "We saw this happen late Friday afternoon. It occurred again today."

Trump's tariffs are meant to curb steel and aluminum "dumping," or keeping costs artificially low to stifle foreign competition, by other countries. A top target is China, which has been producing and exporting cheap steel to the United States for years, leading to the decline of the U.S. steel industry.

Many are worried about Chinese retaliation as a result of these tariffs, causing investors to flee from stocks of companies that use steel in their products to "safer" investments.

To explain this phenomenon, Cramer pointed to his age-old acronym for the market's tech giants: FANG, short for Facebook, Amazon, Netflix and Google, now Alphabet.

Nucor CEO speaks out on tariffs

John Ferriola, CEO of Nucor.
Adam Jeffery | CNBC
John Ferriola, CEO of Nucor.

If you ask the CEO of Nucor, the largest steel producer in the United States, he'll tell you that the president's plans to put tariffs on steel and aluminum imports are fair game.

In a Monday interview on "Mad Money," Nucor CEO John Ferriola pushed back against arguments that the tariffs are unfair to U.S. trading partners and allies.

"I struggle with that concept," Ferriola told Cramer. "Please bear in mind that particularly the European Union, but most countries in the world, have a 25 percent or greater VAT, value-added tax, on products going into their countries from the United States. So if we impose a 25 percent tariff, all we are doing is treating them exactly as they treat us."

Ferriola pointed out that since 1985, one-third of the U.S. steel industry has been wiped out.

PC comeback

MICRON TECH-M&A/TSINGHUAUNIGROUP
Kai Pfaffenbach | Reuters

With all the ruckus around free trade, Cramer didn't want investors to miss what he called "one of the greatest stories of the era:" the comeback of the personal computer.

"It's a tough narrative to swallow," he admitted. "I myself didn't believe in it until HP Inc. reported yet another fabulous quarter, at which point the PC's resurgence simply became undeniable."

HP Inc., once the hardware business of the now-split Hewlett-Packard, handily beat analysts' revenue and profit estimates with its quarterly results.

Cramer was shocked by the company's double-digit growth in "notebooks," or laptops, desktops and workstations — up 14 percent, 17 percent and 11 percent year over year, respectively.

Domino's Pizza CEO on driverless cars

Ordering pizza delivery could drastically change in as little as three to five years, Domino's Pizza President and CEO Patrick Doyle told Cramer on Monday.

The catalyst? Self-driving cars.

"You're clearly going to see transportation change around the world," Doyle said. "We announced a second round of testing with Ford down in Miami last week, so we are absolutely looking at it, we're investing aggressively, we're looking at how that transportation change is going to affect our customers, how they interact with us."

Doyle acknowledged a big catch in the driverless car dream: customers will have to work a little harder for their orders.

"They've got to come out of their homes or their apartments to get the pizza," the CEO said. "So we're learning about that, investing. We think it's a great opportunity for us, but clearly something we're going to continue investing in. And it's coming."

Lightning round: Kick KMI out of your portfolio

In Cramer's lightning round, he shared his take on some callers' favorite stocks:

Kinder Morgan: "No. KMI isn't making the play-offs. What're you coming to me on my show for with KMI? That's like the Cleveland Browns of the pipeline business. I say ix-nay. Don't buy."

Capital One Financial: "That's easy. I'm a buyer of COF. It's one of the banks that I like that's going to do better with higher rates. I do prefer others, but you're going to be doing fine with that."

Disclosure: Cramer's charitable trust owns shares of Facebook, Alphabet and Nucor.

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - Vine

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com