Cramer has two plays: anti-subprime and paper

On last night's MAD MONEY on CNBC, Jim Cramer said he had a stock that can offer some insulation and even some profits from the blow-up in subprime: Annaly Capital Management Inc. (NYSE: NLY).

The CEO, Mike Farrell, predicted the subprime mess and stuck out his neck to reposition his company to profit. Cramer said it is a liquid stock, and claimed he hasn't always been right about it because he doubted it when he shouldn't have. NLY has a 52-week trading range of $11.83 to $15.90, and shares were up 3.5% at $16.11 after hours. Cramer just interviewed the company on a video on the evening of April 10 when the stock closed at $15.64. It closed at $15.55 the next day and closed unchanged at $15.55 yesterday.

Cramer also said that he has a paper trade based on recent events. The ex-Treasury head John Snow at Cerberus is benefiting from the Chinese coated free sheet paper tariff, but Sappi Ltd. (NYSE: SPP) is the one that will benefit from this. The tariffs are intended to be used for magazines, yearbooks, and the like. Sappi is South African, but they are the largest in the U.S., and most of the other companies doing this are private. Cramer thinks it is a trade rather than an investment. SPP rose 2.9% to $17.27 after Cramer called it, above its $17.08 high over the last 52-weeks.

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.