Mad Money Recap
Cramer's 'Mad Money' Recap: The Politics of Corn
TheStreet.com Staff
12/08/06 - 07:42 PM EST
Click here for an archive of Cramer's "Mad Money" recaps.
"The midterm elections are over, and it's immediately time to start looking at the 2008 presidential campaign to make money off politics," Jim Cramer told viewers of his "Mad Money" TV show Friday. He believes that Agrium (AGU) and Mosaic (MOS) are two "perfect plays" off the primaries. Entering "the presidential pander season," Cramer said it's time to look at Iowa, as this is where are all the presidential candidates will start going for the caucuses. He said they also will go there because corn production has become important. "The driver behind corn is the ethanol demand," Cramer said. Not only has there been a huge addition to the demand in ethanol, but also corn yields are down 1.5%. "Corn yields must come up, and money will be spent to bring them up," he said.
It seems some people knew that it was going to go higher, while others where left in the dark, he said.
"I'm ashamed by the system sometimes," Cramer said. "I want answers."
Citigroup closed up $1.14, or 2.25%, at $51.85 Friday.
A Vote for China
Cramer said that although he ordinarily never likes to recommend Chinese companies or "Communist stocks" on his show, he's giving in and advising people to buy Global Sources (GSOL). "China is a country that can legally seize any assets it wants," he said. But after doing his homework, Cramer said he would be a buyer of Global Sources. The stock is at $14, and he believes that it is about to take "a not-so-long march" to $20. However, as the stock is "thinly traded," Cramer urged his viewers to use limit orders. Global Sources, which makes its money by selling ads on its Web sites and in its magazines, is the second-largest business-to-business company in China and is in the process of acquiring the No. 3 company. Moreover, Cramer said he wasn't able to hold out on recommending a China-based stock any longer because of Global Sources' numbers. The company should earn 50 cents a share this year and is on track to earn 70 cents a share next year.Cramerica
Analyst Jonathan Cramer, who recently put out a report encouraging people to buy Best Buy (BBY), knows what he's talking about, according to Cramer. As market players tend to get "jittery about consumer spending" ahead of the quarter, the stock has gone down, he said. But Cramer believes that the best way to buy Best Buy is on weakness because it tends to bounce back. "The long-term picture for the stock is good," he said. "Buy into weakness before it reports next week." Moving on with his game plan, Cramer told viewers all the brokers report next week. Out of them he said Goldman Sachs (GS), which he owns for his charitable trust, Action Alerts PLUS, is going to have a "great" quarter. However, Cramer said he is "a tad concerned" with this stock as it has gone up. If Goldman gets hit, and particularly goes below $200, he advised people to buy it. If Goldman gets hit, Cramer also suggested buying smaller portions of Lehman Brothers (LEH) and Bear Stearns (BSC) ahead of their quarters. Goldman closed at $205.10 Friday.Mad Mail
In his "Mad Mail" segment, Cramer told a viewer that although there are five casino companies up for the Philadelphia casino decision on Dec. 20, he believes Trump Entertainment (TRMP) will be the one to get the bid. "I looked at the casino bids and three of them are directly related to the waterfront," Cramer said. "Trump, however, is putting his casino in a not-so-great neighborhood and therefore will create jobs where they are really needed." If it doesn't get the bid, Trump should fall to $19 and people should buy it then, he said. Trump closed at $21.79 Friday. When a viewer asked if she should wait to buy Level 3 Communications (LVLT) until after it acquires Broadwing (BWNG), Cramer said no because the acquisition has "totally been factored into the stock."Lightning Round
Cramer was bullish on Build-A-Bear Workshop (BBW), Manulife Financial (MFC), Medarex (MEDX), Goldman Sachs (GS), Federated Department Stores (FD), J.C. Penney (JCP), Kohl's (KSS), MasterCard (MA), Chevron (CVX), Devon Energy (DVN), Hain Celestial (HAIN) and L-1 Identity Solutions (ID). Cramer was bearish on JPMorgan Chase (JPM), La-Z-Boy (LZB), Bank of America (BAC), Citigroup (C), Valero Energy (VLO) and Whole Foods (WFMI). 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 popular book by clicking here. |
 |
 |