Mad Money

Cramer Remix: Apple’s quarter could propel these 3 stocks to the stratosphere

Key Points
  • "Mad Money" host Jim Cramer shares his take on Apple's earnings beat.
  • Cramer also sits down with two CEOs from the real estate space to get their take on the industry.
  • In the lightning round, Cramer finds a problem with one popular pot-legalization play.
Cramer Remix: Apple’s quarter could propel these 3 stocks to the stratosphere
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Cramer Remix: Apple’s quarter could propel these 3 stocks to the stratosphere

After a three-day sell-off that rattled a number of top-performing stocks including FANG, Jim Cramer was delighted to see Apple's quarterly earnings beat on the top and bottom lines.

"Apple's thing-of-beauty quarter and solid guidance should lift the Nasdaq back to where it was before the sell-off began, and will certainly propel the stocks like Cirrus Logic, Skyworks Solutions and most important, Broadcom, fortunately a big holding in my charitable trust, as, of course, is Apple. To the stratosphere," the "Mad Money" host said.

Shares of Apple closed on Tuesday around $150, but after-hours trading drove the stock up over 6 percent to $159, an all-time high, as investors cheered the tech giant's third quarter.

"I say congratulations to CEO Tim Cook, and while I'm at it, can I ask where the 'Apple's best days are behind it' chorus is playing? I would like to pick at the production," Cramer said. "Now [Apple's stock is] at an all-time high, more than 60 points, 60 points left on the table by those who traded it instead of owning it."

Moreover, the three-day sell-off may have come and gone, but Cramer still had some post-pullback advice to share with investors who made it through the pain.

An Amazon-Free Zone?

Jeff Bezos
Peter Foley | Bloomberg | Getty Images

To Cramer, it almost seems like the widespread fears of Amazon that have burdened retailers are starting to wither away.

"We're seeing some things here that might indicate the age of Amazon as the destroyer of all things retail may, at last, be receding, at least for the moment," the "Mad Money" host said.

To make sense of the shift, Cramer tracked brick-and-mortar names from Home Depot to Wal-Mart for a closer look at what may be driving retail's moderate comeback.

Off the Charts: Be Afraid? 

Brendan McDermid | Reuters

Then, with the Dow Jones average inching towards 22,000, even Cramer found cause to wonder whether the stock market's continuous rally is truly sustainable.

"We always need to ask ourselves if we've gotten too complacent. That's just a necessity. You do that as part of being a disciplined investor," he said.

And one of the surefire ways to check complacency in the market is with the CBOE Volatility Index, known as the VIX for short, Cramer said.

The VIX measures traders' expected levels of volatility in the near future, and is widely known as the "fear index" because of its ability to gauge the amount of fear in the marketplace.

For a deeper analysis of the fear gauge, Cramer turned to the charts of technician Mark Sebastian, the founder of OptionPit.com, Cramer's colleague at RealMoney.com and "Mad Money's" resident VIX expert.

CBRE CEO: International Growth

Cramer also sat down with Bob Sulentic, the chairman, president and CEO of commercial real estate giant CBRE Group, who said international business was finally breathing a sigh of relief.

"It's our acquisitions, but it's also the organic growth that we've had in those markets and it's following our customers around the world," Sulentic told Cramer on Tuesday, referring to CBRE's overseas business in the wake of Brexit. "We've added a lot of talent, a lot of capability, taken market share, all of those things have helped us to do well. And, of course, the U.K. market and London performed a lot better this quarter than they did a year ago."

And while the amount of building might be slowing worldwide, Sulentic argued that his company is well positioned to benefit from a number of real estate trends not necessarily tied to building.

"We manage buildings. We lease buildings. We sell buildings. We help people buy buildings. We develop buildings. Wherever there's real estate, there's work for us to do, and when there's real estate to be added, there's lots of work for us to do. So the one thing that people should know about our business and our company: the base of real estate that's occupied around the world is growing. That's good news for our company on a sustainable basis," the CEO said.

Ellie Mae CEO: Fundamental Drivers

Finally, Cramer spoke with Ellie Mae CEO Jonathan Corr, who said his mortgage software company expects tailwinds in the coming years despite a weaker-than-expected quarter.

"We had a lot of things that we're really happy about this quarter, fundamental drivers in terms of bookings and new customers and progress on our lending platform, and still, we're growing quite well in a market with some headwind," Corr told Cramer on Wednesday. "But the [refinancing] transition, although we expected it, had a bigger impact on a number of our customers than we initially projected."

Corr said the company was now past that transition and looking to better times, particularly if demand tilts to its favor.

"The demand curve out there is very strong and it looks to be strong and getting stronger as we go through this year into next year and beyond," the CEO said. "Now, the fundamental drivers of our business are independent of residential finance volume. The underlying drivers of the business are all about us picking up lenders, driving more efficiencies, driving more loans across the platform – and it really is a network effect – and driving more revenue per loan. So yes, you know, if volume is behind us, it's a tailwind. If it's in front of us, it's a bit of a headwind, but the fundamental drivers of the business are strong."

Lightning Round: Legalizing Pot Might Hurt This Stock

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

GW Pharmaceuticals: "Here's the issue: the more states legalize [marijuana], the more people, I think, kind of just say, 'I don't need GW Pharma.' And that's the problem. The stock's kind of stuck."

Teekay Corporation: "You know, I just got out of the shippers. I don't want to touch any of the shippers. And I reiterate, as much as I know that it hurts people's feelings, that I dread Nordic American Tankers. Natty dread. That's a reference both to Bob Marley and also that stock."

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