Mad Money Recap
Cramer's 'Mad Money' Recap: From Russia With Love
TheStreet.com Staff
04/07/08 - 07:52 PM EDT
Click here for an archive of Cramer's "Mad Money" recaps.
The former Warsaw Pact countries have turned themselves around, Jim Cramer told viewers of his "Mad Money" TV show Monday.
Cramer: Stick With Ag |
A Stimulus Plan That Works
"Forget about the economic stimulus package here in the U.S.," Cramer said. Instead, he encouraged viewers to look into the recently announced $5.6 billion stimulus package in Mexico really benefits companies. He said the package, which includes a 3% income tax break for companies, along with a 10% to 20% decrease in the price of electricity and reductions in mandatory payroll benefit payments, should be a windfall for the Mexican economy. One of the largest beneficiaries of the new stimulus, is Formento Economico Mexicano (FMX Quote - Cramer on FMX - Stock Picks), parent company to the largest bottler of Coca-Cola (KO Quote - Cramer on KO - Stock Picks) in Latin America, he says. Besides Coca-Cola, the leading soft drink brand in Latin America, Formento also distributes over 70 other soft drink brands throughout the region. It is also the second largest brewer in Mexico, distributing over 31 brands. Cramer also likes Formento for its ownership of the OXXO convenience store chain. "These convenience stores are the perfect outlet for Formento's products," he said. He said Formento also makes its own glass bottles and bottle caps, making it less susceptible to any increase in raw costs. As with investing in Mechel shares, Cramer advised investors to wait for a pullback and buy the stock on weakness.Catch-Up Stocks
In a new series called "Catch-Up Stocks," Cramer highlights stocks that are lagging versus their competitors and are poised to "catch-up" for big gains. Tonight he focused on corregated cardboard maker Temple-Inland (TIN Quote - Cramer on TIN - Stock Picks), a stock which is down 27% since he first recommended it back on March 20, 2007. According to Cramer, Temple-Inland doesn't deserve to be lagging behind competitor Louisiana-Pacific (LPX Quote - Cramer on LPX - Stock Picks), which is up a quick 25% since March 20 of this year, while Temple-Inland is up a paltry 11% in the same period. With its 3.1% dividend yield, Cramer called Temple-Inland the "picture of stability," saying that weakness in both the economy and housing sectors will not hurt the company as much as anticipated. According to Cramer, the weak U.S. dollar makes U.S. cardboard cheaper around the world. With the U.S. having one of the largest uncut softwood forests left on the planet, Temple-Inland is poised for years of success, he says. Cramer also looks favorably at Carl Icahn's 9.8% stake in the company as added protection.Mad Mail
In the "Mad Mail" viewer feedback segment, Cramer once again urged viewers to visit www.fcc.gov and voice their support for the merger between Sirius Satellite (SIRI Quote - Cramer on SIRI - Stock Picks) and XM Satellite Radio (XMSR Quote - Cramer on XMSR - Stock Picks). Cramer recommended Freeport-McMoRan (FCX Quote - Cramer on FCX - Stock Picks) to a viewer who was looking for a way to play the new regime in Cuba. When a viewer asked for a good trucking stock, Cramer recommended Ryder (R Quote - Cramer on R - Stock Picks), but also said that UPS (UPS Quote - Cramer on UPS - Stock Picks) is also cheap at the moment.Final Note
In a final note, Cramer added Hector Ruiz, President and CEO of Advanced Micro Devices (AMD Quote - Cramer on AMD - Stock Picks) to his "Wall of Shame." He told viewers he would buy Intel (INTC Quote - Cramer on INTC - Stock Picks).