Cramer's 'Mad Money' Recap: This Bud's for All

02/05/07 - 08:02 PM EST

TheStreet.com Staff

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


Companies that advertise during the Super Bowl, on average, tend to beat the market long term, Jim Cramer told viewers of his "Mad Money" TV show Monday.

"Rigorous homework" backs this theory up on Stockpickr.com.

As proof, Cramer named the top three Super Bowl advertisers for the last 20 years -- Anheuser-Busch (BUD Quote), PepsiCo (PEP Quote) and General Motors (GM Quote).

"Despite GM holding the group back, if you owned these stocks for the last 20 years, you'd be up 739% vs. the S&P 500, which has been up 487%," Cramer said.

It might be hard to accept that watching Super Bowl ads is a way to make money, but comparing Bud's and Pepsi's performance even short term -- since 2000 -- shows both of these stocks beating the S&P, Cramer said.

Moreover, the top five advertisers from last year, which included Pepsi, Bud, Disney (DIS Quote), Procter & Gamble (PG Quote) and Time Warner (TWX Quote), all saw an uptick in their prices in the three months after last year's Super Bowl, Cramer said.

However, this is not a license to buy any stock or to buy the stock of your favorite ad, he said. While buying expensive ad time during the game might be a sign that the company has lot of money, Cramer cautioned that there are always poseurs.

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