Cramer Remix: Panic could help investors catch a bargain

  • CNBC's Jim Cramer breaks down how the collateral damage of Monday’s panic could create a prime buying opportunity.
  • The "Mad Money" host also sits down with the CEOs of Chubb Limited and Lam Research.
  • In the lightning round, Cramer blesses going on a ride with the stock of Six Flags.

Investors could strike gold in the swath of stocks that collapsed on the heels of Facebook's disappointing earnings report last week, CNBC's Jim Cramer said Monday.

"The kind of panic we got today is often a cleansing action, like a big rainstorm that washes away the detritus of the weak hands," the "Mad Money" host said after the tech-heavy Nasdaq endured its largest 3-day loss since March.

"If you wait until tomorrow and pick among the rubble of stocks that were only down as collateral damage — the ones that don't actually have anything to do with social media — then I think those are going to be bargains," Cramer said.

The potential bargains could include high-profile names like Amazon, Microsoft and Alphabet, all of whose stocks slid into Monday's close despite the companies' earnings wins, Cramer said.

For more on why Cramer says you shouldn't feed into the panic, click here.

The stars of earnings season

An Advanced Micro Devices computer chip.
Ashley Pon | Bloomberg | Getty Images
An Advanced Micro Devices computer chip.

Several standout companies are already taking their places as the "clear winners" of earnings season, Cramer said on Monday as stocks stayed under pressure from technology-driven weakness.

First on his winners' list was semiconductor maker Advanced Micro Devices, which delivered a better-than-expected second-quarter earnings report on Thursday, July 26.

Echoing his earlier comments about AMD surpassing its rival Intel for the first time ever in a host of categories, Cramer applauded AMD's CEO, Lisa Su, for engineering a turnaround that helped her company achieve double-digit year-over-year revenue growth for four quarters in a row.

"First, she fixed the company's tattered balance sheet, then she began bringing in new talent, engineers who shot not for the moon, but for the stars," Cramer said. "Bravo."

To read about Cramer's other earnings-season favorites, click here.

NXP Semiconductors: Better off alone?

Microprocessors sit on a circuit board displayed on the NXP Semiconductors NV pavilion at the Mobile World Congress in Barcelona, Spain, on Monday, March 2, 2015.
Simon Dawson | Bloomberg | Getty Images
Microprocessors sit on a circuit board displayed on the NXP Semiconductors NV pavilion at the Mobile World Congress in Barcelona, Spain, on Monday, March 2, 2015.

Qualcomm may have just ended its two-year-long mission to acquire rival chipmaker NXP Semiconductors, but that doesn't mean the latter has lost all hope, Cramer said on Monday.

"I think last week, the big washout in NXP Semis has given you a buying opportunity," he argued. "At these levels, I think this semiconductor company is pretty attractive ... even without a takeover."

Cramer noted how radically Wall Street's tune changed in the days following Qualcomm's termination of the negotiations and the soft quarterly earnings report NXP issued the next day.

NXP's stock got slammed on its second-quarter results. But then five different analysts upgraded its stock, stopping the decline in its tracks and setting CEO Richard Clemmer up for an incredibly bullish Friday interview on CNBC.

For more on why Cramer thinks NXP can hold its own, click here.

Chubb CEO talks the digitization of insurance

Evan Greenberg, CEO, Chubb
Scott Mlyn | CNBC
Evan Greenberg, CEO, Chubb

As the Chairman and CEO of sprawling insurance provider Chubb Limited, Evan Greenberg sees the advantages that the changing tech landscape can bring to his industry, he told CNBC on Monday.

"We spend over $1 billion a year on technology," he told Cramer in an exclusive interview. "We're in a world that's going from analog to digital. Everything is. If you remain analog, you're history. So of course you're going to digitize. People want anytime, anywhere service."

That notion can run counter to the traditional model of insurance companies, which until recently has been to come in after an accident or unexpected event and deal with the damage that's already been done.

"The product we provide, which is about repairing it or replacing it, it's going to move towards predict and prevent, which is about using data and using internet of things," Greenberg said.

For more on Chubb's mission and the trends it's seeing, click here to watch Greenberg's full interview.

Lam Research on heightened value of memory chips

Having recently ended its strongest fiscal year in history, semiconductor equipment maker Lam Research is ready to take on what its chief sees as a growing value proposition for the chips it helps to produce, CEO Martin Anstice told Cramer on Monday.

"The investments, the discipline from our customers today means they invest in capacity when they have demand for chips, and I think that's a commentary on health and sustainability in our industry," Anstice said in an interview.

The CEO added that Lam Research's memory-chip customers, who buy equipment to make dynamic random-access memory, or DRAM, and flash memory chips, "are all reporting in the range of 40 to 50 percent operating income."

And with memory-chip revenue growth at an all-time high, Anstice expected the semiconductor ecosystem to expand as various industries turn to new-age methods of connectivity and data storage.

"Let's not forget that the semiconductor revenues in the last four or five years have increased by about $120 billion, and that's .2 percent of global GDP," the CEO said. "And that reflects the increased value proposition of the industry in the broader data economy."

Click here to watch Anstice's full interview.

Lightning round: Still having fun at Six Flags?

In Cramer's lightning round, he rattled off his take on callers' favorite stocks:

Six Flags Entertainment Corporation: "I like Six Flags. They had a better quarter than people thought. I'm going to endorse it as a buy."

Western Digital Corporation: "It doesn't matter where a stock came from, it matters where it's going to. But now it's all the way down to $69 and it yields almost 3 percent. I think it could fall 4, 5 more points, and then I want to buy it. Pricing has collapsed for NAND."

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

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