Cramer Remix: Chasing this stock’s high may be worth your while

While CNBC’s Jim Cramer was blown away by the monster 30-plus percent run in shares of Restoration Hardware parent RH on Tuesday, he also saw the rise as a unique opportunity.

“Mad Money” host said. “But once the short-squeeze ends, I got some interesting news for you: do you know I think that RH could have still more upside?”

In other words, the high-end furniture retailer’s Tuesday earnings report proved that its stock, like the stocks of other retailers that surprised Wall Street with better-than-expected results, could still have more runway ahead, Cramer said.

“You know me, I hate chasing, but the near-term history in trading these skyrocketing retailers dictates that they aren’t over after the first day, no matter how high they go,” he told investors. “We’ve got a Pamplona-style running of the bulls going on right now in retail, and the shorts? They’re just being trampled day after day after day.”

Cramer was surprised by the court ruling that approved AT&T’s attempted $ 85.4 billion merger with cable and entertainment colossus Time Warner.

On Tuesday, a federal judge ruled that AT&T’s purchase of Time Warner was legal, effectively paving the way for the merger to pass without any conditions or concessions on AT&T’s part.

“I thought that there were going to be some strings attached,” the “Mad Money” host admitted. “I thought the government made a better case than this. Now, this is a full-bore shutdown of the government’s attempt to block this acquisition.”

Last November, the Justice Department sued to block the merger, arguing that it was “illegal” and “harmful” to consumers. After Tuesday’s ruling, Assistant Attorney General Makan Delrahim said in a statement that the Justice Department was disappointed by the decision and would review the U.S. District Court’s opinion and “consider next steps.”

But this deal spoke volumes to what could happen on Wall Street in the coming weeks, Cramer argued.

Cisco Systems’ recent partnership with Alphabet’s Google to create a seamless cloud network “plays a tremendous role with security [and] policy,” Cisco’s Chuck Robbins said Tuesday.

In an exclusive interview with Cramer, the Cisco chairman and CEO said the partnership came in response to what customers of his networking hardware company were looking for: the ability to move their workloads from private to public clouds.

“They’re looking for the public cloud economics and the ability to actually have applications and write applications one time and then deploy them to any cloud,” Robbins told Cramer.

So when it came to Cisco’s attention that Google and its software platform Istio had pioneered an open-source solution to this growing need, the companies decided to join forces.

With U.S. stocks on the climb thanks to bullish institutional buyers, Cramer figured investors would start to get hesitant about buying into a market that’s heating up.

But after consulting technician Rob Moreno, Cramer concluded that that would be a mistake.

“There’s a lot to like about this environment, and more importantly, there are plenty of stocks that still haven’t really run very much,” Cramer said. “That’s right, we’ve got a bunch of laggard stocks that could soon break out to higher levels.”

One stock that exemplified this theory was that of Edwards Lifesciences, a Cramer-fave medical equipment maker that specializes in artificial heart valves and blood pressure monitors.

Jason Gorevic, the CEO of telehealth giant Teladoc, told Cramer in an exclusive interview Tuesday that there’s no turning back when it comes to the rise of virtual care.

“This is definitely a wave,” he said of his company’s core business, which uses technology to pair patients with doctors via video-conferencing or phone calls.

“I think we’re past the point of inevitability for virtual care,” Gorevic added.

Ripples of the telehealth wave have even reached the federal government. Gorevic said his company serves federal employees through their benefit plans.

“I think the government really is taking notice and they’re very much behind technology to revolutionize how health care is delivered,” he told Cramer. “The administration’s very supportive of virtual care.”

To watch Jason Gorevic’s full interview, click here.

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

Chesapeake Energy: “Natural gas is breaking out here which means you get a chance to sell Chesapeake.”

Applied Materials, Inc.: “Oh, my, [CEO] Gary Dickerson’s so great and so is [CEO] Martin Anstice at Lam Research. I am going to say that it’s OK to buy here but I can’t pound the table.”

Disclosure: Cramer’s charitable trust owns shares of Alphabet.

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