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Cramer's 'Mad Money' Recap: Don't Miss Saigon Opportunity

TheStreet.com Staff

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

When Intel(INTC) applies with the government of Vietnam to build a semiconductor plant in Ho Chi Minh City, it's officially time to start investing in Vietnam, Jim Cramer said on Thursday's "Mad Money" TV show.

The country's economy grew at 8% in 2005, but no one knows how to play the country because it's bottled up tight. That is until now.

Cramer's done some homework and says the country is going capitalist.

"You don't get Intel begging to open up in communist countries," he said.

But it's in transition, and investing directly is too risky. The smart play is the banking system, since Cramer said everything in the country is financed by, and thus owned, by four banks.

So he suggested buying Australia & New Zealand Banking Group(ANZ), an Australian bank that owns 10% of a key Vietnamese bank that is due to start trading on the Ho Chi Minh City Stock Exchange.

ANZ is worth owning, Vietnam aside, he said. A caller agreed, saying that its compound annual growth rate was 16% over two years.

But the same caller said that the P/E of 17 that he had calculated is a bit expensive, and that the stock is near its 52-week high. So he asked if now is the right time to get in on ANZ.

Cramer said that it's still a good buy, since he calculated a smaller P/E ratio. He added that Commerce Bancorp(CBH) is the only bank he would usually recommend with a P/E as high as 17.

Another caller wanted to know why Intel's(INTC) price is not reflecting the company's growth potential.

Cramer said that until the company adds a communications multiple, it will be treated like a PC play.

Progenics, an Undervalued Biotech

For viewers who want a biotech stock that can be bought simply because it's extremely undervalued, Cramer suggested Progenics Pharmaceuticals(PGNX).

"I think we're all a little sick of speculating on overvalued biotech plays," he said, adding that Progenics is cheap even though it's trading just below its 52-week high.

The company is working on a drug to combat the negative side effects of painkillers like morphine.

If a doctor hands out this drug every time he hands out painkillers, that could be huge, Cramer said. That's why Wyeth(WYE) cut a deal with Progenics worth $416 million.

The stock traded near $23 before the deal was announced, and is still under $27, a jump Cramer said does not reflect the value of the deal.

He said that the company's market cap is only $660 million. If you subtract the $120 million it has in cash and the cash from the Wyeth deal, the company is valued at $105 million, a price he called "insanely cheap."

Greenberg's Red Lights

Herb Greenberg, senior commentator for MarketWatch, appeared on the show to tell viewers that Take-Two Interactive(TTWO) is a dog and that its latest bad quarter is not an opportunity to buy.

Greenberg said the company is a disaster, with no reliable income statement, balance sheet or forecast.

The company's CEO said that he's upbeat about the global video-game market, but the head of Take-Two's global video-game division has quit.

He also took the wind out of American Italian Pasta's(PLB) sails.

Greenberg said that the company's recent upgrades are based on previously reported numbers and that American Italian is restating those figures.

He added that the company has lost tremendous amounts of market share to names like Barilla.

He finished by saying that Johnson Controls'(JCI) stock is rising because the company is no longer tied to the auto industry.

Kyocera: The Next Samurai

Cramer wrapped up the show by adding another company to his Seven Samurai of Japanese Stocks: Kyocera(KYO).

He called the conglomerate the Japanese version of General Electric(GE), since they make everything from ceramics to cell phones.

It has a lot of divisions, so it's a great way to play the turnaround in Japan's fortunes. And since it's coming out of 10 years of stagnation, it's very cheap right now.

As an added bonus, the company has a solar power division, a sector Cramer has given a big thumbs up.

Lightning Round

Cramer was bullish on Beazer Homes USA(BZH), UnitedHealth Group(UNH), Grant Prideco(GRP) TradeStation(TRAD), Ameritrade(AMTD), Birch Mountain Resources(BMD), Sonic(SONC), Computer Sciences(CSC), Adobe Systems(ADBE), Broadcom(BRCM), Cornell Companies(CRN), Paccar(PCAR), Walgreen(WAG) Calgon Carbon(CCC) and Whole Foods(WFMI).

Cramer was bearish on UPS(UPS), Dendreon(DNDN), OraSure Technologies(OSUR), Sonus Networks(SONS), Intuitive Surgical(ISRG), Walt Disney(DIS), Arena Resources(ARD), FLIR Systems(FLIR), Rite Aid(RAD), Ford(F), Harris & Harris(TINY), Albertson's(ABS) and Flanders(FLDR).

For more of Cramer's insights during the Lightning Round, click here.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.