Cramer Remix: The stocks worth owning once the coast is clear

The easing of economic activity will give a boost to the companies of Dollar Tree and Darden Restaurants, but investors should be patient before investing in their stocks here, CNBC’s Jim Cramer said Monday.

Dollar Tree, which owns Family Dollar as a subsidiary, will be able to better manage the costs of tariffs on Chinese imports than most people expect and the discount store chain will draw in more customers as the economy slows down, the “Mad Money” host said.

Darden Restaurants, the parent of Olive Garden, LongHorn Steakhouse and Bahama Breeze among other eateries, will also catch windfall from trade tensions and the slowing economy. The restaurant group will see its raw costs fall if China continues to put pressure on American agriculture and the shortage of labor will be less of a problem if the economy continues to drift, he added.

However, both are components of the S&P 500, which posted another two-day losing streak during the session.

“You have to worry that they could be dragged down by the gravitational pull of the entire market,” Cramer said. “I could see Darden falling to 17-times earnings, Dollar Tree going to 15-times earnings if the averages keep getting hammered based on these overblown fears of a recession.”

“So you got to wait until the dust settles before committing any new money,” he said.

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Cramer said he doesn’t think the U.S. is doomed for a recession, but the market is feeling the weight of those fears in the short term.

The 10-year Treasury bond yield is causing worries after it fell to 1.64%, its lowest level in about three years, but Cramer says he only expects “incremental deterioration.”

“While I think the recession stocks work here, I do not believe that we are headed into a recession, people,” the host said. “There’s too much going right: lower mortgage rates, lower car [loan rates], robust consumer spending, very strong job creation. Yes, there are weak spots, but that’s hardly the stuff of a recession.”

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Take-Two Interactive Software CEO Strauss Zelnick said it’s wrong to blame gun violence in the United States on entertainment, pushing back against President Donald Trump’s suggestion that “gruesome and grisly video games” played a factor in recent mass shootings in the country.

Both comments come in the wake of two attacks in El Paso, Texas and Dayton, Ohio that left dozens of people dead.

“The truth is it’s disrespectful to the victims and the families to point the finger at entertainment,” Zelnick said in an interview with Cramer. “Entertainment is part of people’s daily joy and it’s consumed worldwide and it’s the same worldwide [that] gun violence is uniquely American and that has to change, and that will only change if we address the real issues.”

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K-cup consumers in the United States can expect their single-serving coffees to be friendlier to the environment in 2020.

The CEO of Keurig Dr Pepper, which makes the cup pods, told Cramer that the company is focused on sustainability efforts. The non-recyclable, non-biogradable brewing pods from the Keurig coffeemaker in 2015 sparked cries online to “Kill the K-Cup.”

“All of Canada has been converted to recyclable K-cups and all of the US, which is in process of being converted now, will be converted by the end of next year,” Bob Gamgort said in a one-on-one with Cramer on “Mad Money.” “It’s part of a bigger program to make sure that our environmental footprint is down.”

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In Cramer’s lightning round, the “Mad Money” host answers callers’ questions about their favorite stock picks in rapid speed.

Delta Air Lines: “I don’t like the airlines here. I just think that the group is being pulled down and that they’re just not the right place to be at this very moment. When Delta yields more than 3%, which is a couple points from here, we’ll take a look at it again.”

AMAG Pharmaceuticals: “I think it’s a good spec. … You just own them and you just say to yourself: ‘O.K., I may lose money in this, but there’s always a chance for a home run.”

Okta: “I know that there’s been a lot of insider selling … these are the kinds of stocks that are coming in here. You can wait. You do not need to step up to the plate to buy Okta right here.”