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Cramer's 'Mad Money' Recap: Brazil's Winning Gol

TheStreet.com Staff

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

Brazilian companies such as Banco Bradesco (BBD Quote) and Companhia Vale do Rio Doce (RIO Quote) have made us money before, and it could happen again, Jim Cramer told viewers of his "Mad Money" TV show Thursday.

Gol Linhas Aereas Inteligentes (GOL Quote) is a Brazilian airline that he believes is worth getting behind. "If you want to become a true international stock pimp, Gol is for you," Cramer said.

Although he doesn't generally like airlines, Cramer said he's liked Gol off and on for some time. Now he feels it's time to get into the airline carrier.

For years Gol faced competition from Brazilian airline company Varig, which dominated the international flight market, he said. It was Gol's main competitor. However, last year, "beleaguered by debt, Varig went belly-up," Cramer said. And this week, Gol announced its acquisition of the company.

Now Gol has gone from a "troubled" airline carrier to one that is great, he said. "This is a stock that's headed higher."

And even though Gol is up today, we will not see weakness here for a long time, so it's better to get in now. But "do your homework first," Cramer advised. "I see a 30% move ahead."

Benefit of the Doubt

As part of Cramer's new "Benefit of the Doubt," or BOD, series, he told viewers that he's backing two teams.

First is Polo Ralph Lauren (RL Quote), Cramer said. Although CEO Ralph Lauren is the "visionary" behind the company, the "executioner" is Roger Farah, the retailer's COO, he said.

Lauren and Farah deserve the benefit of the doubt, and so does the entire company, Cramer said. "It's doing what they call brand elevation in specialty retail, international expansion, Web site work and infrastructure."

Ralph Lauren is "the ultimate high-end play" with 12% to 15% growth, he said. However, when it reported a "fantastic quarter" not long ago, the stock price fell because market players incorrectly thought Farah had guided down estimates.

Farah assured people that it wouldn't hurt earnings and that he wasn't guiding down, but analysts turned on him, Cramer said. In the end, the stock recovered, but it's still down.

This is proof for Cramer that the company deserves the benefit of the doubt. He stands behind the stock on any weakness.

The next team he added to his BOD list was Saks' (SKS Quote) Steve Sadove and Ralph Frasch.

As CEO, Sadove "keeps the money coming in," but the "merchandising genius" is Frasch, the retailer's vice chairman and chief merchant, Cramer said. Frasch generates the look and keeps the sales coming. Sadove delivers to the shareholders, he said.

However, when UBS raised its estimates on the play recently, it didn't upgrade the stock, Cramer said. But he is sticking with it and believes that investors should, too.

Sell Block

During his "Sell Block" segment, Cramer told viewers that his first job is to "police the business" and "blow the whistle" when someone plays against the rules.

When Syntax-Brillian's (BRLC Quote) CEO, Vincent Sollitto, recently came on Cramer's show, "he sang a great song" about the momentum of high-end TVs and the high-def boom, and about how his stock was the best way to play it.

What he failed to mention was that he was about to raise $15.5 million in a strategic financing with investors, Cramer said. The fact that Sollitto is doing a side deal with shareholders and offering them stocks at a lower price than what "Mad Money" viewers can get angers Cramer.

Therefore, "no matter how good the story," Cramer said he has to take Syntax-Brillian off the table.

Cramer also advised viewers to take some AT&T (T Quote) off the table and get into Verizon (VZ Quote), which is cheaper and has a higher yield.

Further, he said he would sell BP (BP Quote) and buy Exxon Mobil (XOM Quote) or Transocean (RIG Quote), which he owns for his charitable trust, Action Alerts PLUS, instead.

In addition, Cramer said Movado (MOV Quote) at $28.74 is a good entry point.

Moreover, Cramer said he still likes BigBand Networks' (BBND Quote) story and believes that it's worth getting in it on weakness.

Cramer advised schnitzeling out of Sourcefire (FIRE Quote) and said he still doesn't like Glu Mobile (GLUU Quote) and Aruba Networks (ARUN Quote) .

He said Clearwire (CLWR Quote) is "on sale" and recommended buying some now, if people are not in it already.

And finally, Cramer advised selling ETelecare (ETEL Quote) on any strength and then playing with the house's money.

Up With Volcano

Scott Huennekens, Volcano's (VOLC Quote) president and CEO, joined Cramer on his show, where Cramer asked him what it means that General Electric's (PHG Quote) "exclusive distribution rights" for Volcano's most important consol are expiring.

"GE has rights to one version of our product that it can integrate into its cath lab, and earlier this week we announced the deal with Philips(VOLC Quote) for another version. So as we move forward, GE is going to have exclusivity to the advanced functionality version of the product, and the lower functionality version will also be incorporated onto Philips and other larger manufacturer systems," Huennekens said.

"Just like a car comes with a radio, we see every cath lab coming with an Ivus machine in it," the CEO added.

With the increased need to visualize arteries and other body parts as more procedures are done minimally invasively, there are a lot of opportunities out there, Huennekens continued.

Cramer gave Volcano a triple buy.

To view Cramer's interview with Scott Huennekens, please click here.

During his "Sudden Death" round, Cramer bullish on Chemed (CHE Quote), Brush Engineered (BW Quote) and FactSet Research (FDS Quote).

He was bearish on LHC Group (LHCG Quote) and Frontline (FRO Quote).

Lightning Round

Cramer was bullish on Genentech (DNA Quote), Gilead Sciences (GILD Quote), Celgene (CELG Quote), Genzyme (GENZ Quote), Time Warner (TWX Quote), Sears (SHLD Quote), Devon Energy (DVN Quote), Transocean (RIG Quote), GlobalSantaFe (GSF Quote), Onyx Pharmaceuticals (ONXX Quote), Cheesecake Factory (CAKE Quote), Chipotle Mexican Grill (CMG Quote), TD Ameritrade (AMTD Quote), Qwest Communications (Q Quote), Gmarket (GMKT Quote), eBay (EBAY Quote), Marvell Technology (MRVL Quote) and Kinder Morgan Energy (KMP Quote).

Cramer was bearish on Yum! Brands (YUM Quote), Stride Rite (SRR Quote) and Nvidia (NVDA Quote).

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.