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Cramer's 'Mad Money' Recap: Bet Your Dollar Bottom

TheStreet.com Staff

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

We have a weak dollar, which is only getting weaker, but contrary to popular belief, this is not bad for the market, Jim Cramer told viewers of his "Mad Money" TV show Monday.

First of all, "the market" doesn't really exist, but is a convenient way to group together a bunch of disparate stocks, he explained. There are those companies that get hurt by a weak dollar and those that get rich by a weak dollar, Cramer said.

The only time people should worry about a weak dollar is when it leads to higher interest rates. But that's not going to happen here, he said.

The winning stocks that should profit from a weak dollar are those that have had "incredible" global success, because when these companies exchange their money back into dollars, they should get better exchange rates and thus more money, Cramer said.

The 14 American companies with the lowest percentage of sales in the U.S., he continued, include Altria (MO Quote) and Halliburton (HAL Quote), both of which Cramer owns for his charitable trust, Action Alerts PLUS.

The 12 other companies are Procter & Gamble (PG Quote), DuPont (DD Quote), IBM (IBM Quote), Chevron (CVX Quote), Dow Chemical (DOW Quote), Exxon Mobil (XOM Quote), Qualcomm (QCOM Quote), Aflac (AFL Quote), Analog Devices (ADI Quote), Colgate-Palmolive (CL Quote), Intel (INTC Quote) and Texas Instruments (TXN Quote).

However, not all of these stocks are worth buying, according to Cramer. For example, although a weak dollar may be good for Dow Chemical, this stock is an "underperformer" and not a good buy here.

Also, Chevron and Exxon are both "way too levered to oil," and are not worth buying here either, Cramer went on to say.

Similarly, the techs on the list are all "sensitive to consumer spending," and IBM "has already had its move," although Cramer said he would buy IBM on a pullback.

There are four stocks on the list he said he considers "winners" that are worth buying: Altria, Procter & Gamble, DuPont and "Prince Hal."

"These are the four horsemen of the weak dollar apocalypse," Cramer said. All these companies reported their last quarters without the weak dollar factored in, so they should have better-than-expected earnings, he explained.

Not only is Altria "dirt cheap," it is going to break itself up into three companies, which is when the company's "real value will be unlocked," Cramer said.

Moreover, Procter & Gamble's upside surprise should stem from exchange-rate fluctuations, and DuPont "is in a great moment with corporate nirvana where price increases are sticking and raw costs are going down."

Finally, Cramer believes that Halliburton won't have to cut its prices because the weak dollar should do it for the company.

"I'd buy any of these four," he said.

Red, Red Wine

For a few weeks now, The New York Times and The Wall Street Journal have been reporting about how it is a proven fact that red wine saves lives, Cramer told his viewers.

However, the newly found health benefits of red wine have done nothing to spur action in Constellation Brands (STZ Quote), the world's largest wine producer, Cramer said.

The market is giving investors a gift with Constellation Brands, and people should accept that gift, Cramer said. Although analysts may be painting a bleak picture for Constellation, he insisted there is no reason to be concerned about the stock.

Because wine companies are not allowed to tout the health benefits of their products, Constellation is one of those stocks that "floats under the radar," Cramer said. But now it should be able to blow away its numbers.

Constellation Brands is a good stock to own and should be poised to make a lot more money, "now that red wine is virtually a vitamin," he said.

Cramer told viewers to take a little Chemical & Mining Co. of Chile (SQM Quote) off the table and pocket some profits but urged people to stay in the stock.

The company is in the middle of a bidding war and has become a battleground. And although Cramer usually advises people to stay away from battlegrounds, "this is one you should buy" because both bidders are backing up their trucks and loading up on Chemical's stock, he said.

Previously, Cramer said he liked Chemical for its lithium (nondrug) business, which is still a reason to buy this stock. But one of the main reasons he believes Chemical is a buy right now is because 54% of the company's business has to do with fertilizers.

Fertilizer is a growth market, he said. "It is the place to be."

Moreover, Chemical is "undervalued by 30% based on its earnings alone. And if it gets acquired, the premium should be a whole lot higher than that," Cramer said.

Mad Mail

In his "Mad Mail" segment, Cramer told a viewer that both Hasbro (HAS Quote) and Mattel (MAT Quote) are "incredibly cheap stocks."

Further, "all that ultimately matters is the inexpensive nature of a stock -- not whether it's overbought or oversold," he told the viewer.

Responding to his next piece of mail, Cramer said that Packeteer (PKTR Quote) is not nearly as good a stock as Riverbed Technology (RVBD Quote).

In Cramer's "Sudden Death" round, he was bearish on Superior Industries (SUP Quote), American Standard (ASD Quote) and Whole Foods (WFMI Quote).

Lightning Round

Cramer was bullish on Devon Energy (DVN Quote), Halliburton (HAL Quote), Verizon (VZ Quote), Waste Management (WMI Quote), Panera Bread (PNRA Quote), Trump Entertainment (TRMP Quote), Lundin Mining (LMC Quote), Starbucks (SBUX Quote), Walter Industries (WLT Quote) and Level 3 Communications (LVLT Quote).

Cramer was bearish on Helmerich & Payne (HP Quote) and Alcoa (AA Quote).

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

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