Cramer's 'Mad Money' Recap: Lapping Up Luxury

Click here for an archive of Cramer's "Mad Money" Recaps.

---

Diamond Life

Diamond sales are up 14% this year, the biggest increase in 10 years, said Jim Cramer Thursday on his "Mad Money" TV show. The best way to play it is Anglo American (AAUK Quote).

Demand for diamonds is being fueled largely by economic growth in China and India. De Beers, which has about 80% market share in diamonds, is privately held. But, Anglo American is publicly traded and owns about 45% of De Beers.

Anglo American hasn't been very well run in the past, said Cramer, but the company is starting to improve. What's more, in addition to diamonds, Anglo American also has exposure to hot natural resources such as coal and in-demand metals such as copper, gold and platinum.

Cramer continues to be bullish on the "mineral supermarkets" such as BHP Billiton (BHP Quote) and Rio Tinto (RTP Quote), which he calls the "Safeway" (SWY Quote) and "Albertson's" (ABS Quote) of the mineral world. But, Anglo American, he says, "is the Whole Foods (WFMI Quote) of the mineral group."

Subsea and FMC

Cramer is bullish on FMC Technologies (FTI Quote), which represents the future of oil drilling, said Cramer.

The oil-service company makes subsea trees and high-tech horizontal drilling systems, which save oil companies money by not having to reposition their floating platforms each time they want to drill a new well.

There are lots of companies that make horizontal drilling platforms, said Cramer, but FMC has the best technology. The stock is only up 25% for the year because it has been "overlooked," said Cramer, making it an even more attractive buy.

Cramer is also still bullish on EnCana (ECA Quote), saying the company has the "best land rights" for natural gas. He thinks the stock "could go to $65 if natural gas goes to $15."

EnCana ended the regular trading session Thursday at $57.48.