Cramer's 'Mad Money' Recap: Annaly's Safe House

Paper Money

Cramer's pick on the paper trade is Sappi (SPP Quote). It is the "big winner" from the new antisubsidy and antidumping tariffs the U.S. has imposed on coated free paper from China, Cramer told viewers.

Most companies that make coated free paper, the glossy paper found in magazines and yearbooks, are private, he said. Further, Cramer said he believes "the tariffs could make a real short-term difference for SPP's earnings ."

However, he stressed that Sappi is a trade idea, not an investment idea. Over the long term, Cramer believes, this South African paper company won't be able to compete against its Chinese competitors.

Sell Block

Cramer dedicated his "Sell Block" segment to Vonage (VG Quote).

Michael Snyder recently stepped down as Vonage's CEO, and Jeffrey Citron has taken his place. However, because Citron was "banned from the securities industry in 2003," Cramer believes he "should not be allowed to be the CEO of a public company." This new appointment is just one more reason to sell Vonage, Cramer said.

Cramer also put Johnson & Johnson (JNJ Quote) in the sell block, saying he likes the company but that he got it wrong.

J&J used to be best of breed, but the truth is there are very few blue-chips left, and this drugmaker is not one of them, he said. Not only are its drugs starting to come off patent, but J&J's Invega drug has been a "huge disappointment."

In addition, Cramer advised viewers to sell Friedman Billings Ramsey (FBR Quote), which he believes is "trying to create money from nothing."

"Its problem is that it's the opposite of Annaly" and has exposure to some bad subprime lending, he said. Moreover, while people might be inclined to buy the IPO of its FBR Capital Markets unit, Cramer warned investors against it. On some metrics, Cramer said, the subsidiary is also worth nothing.