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Cramer's 'Mad Money' Recap: The Next Big TV Market

TheStreet.com Staff

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

"What happened in our markets today is exactly why I've been focusing on Russian stocks all week," Jim Cramer told viewers of his "Mad Money" TV show Friday.

He reminded viewers that they should never rely solely on the U.S. economy and should always diversify, with at least 20% of their portfolios in overseas stocks.

For his final stock pick in his week-long "From Russia With Love" series of Eastern European stocks to own, Cramer recommended Central European Media (CETV Quote - Cramer on CETV - Stock Picks).

According to Cramer, the story at CETV is simply one of growth, growth, and more growth. The company commands a phenomenal 43% marketshare in its home country of the Czech Republic, and has sizeable share in every country where it operates.

"CETV blankets all of Eastern Europe," said Cramer. Better still, all of CETV's markets are under-penetrated, with ad revenues growing at 5% a year on average.

CETV is up 61% since he first recommended it on Nov. 29, 2005. Cramer is reiterating his buy, citing the company's stellar fourth-quarter results, in which it posted a 41% increase in revenues. The company trades at just 16.8 times expected earnings, but has a long-term growth rate of 31%.

"I call a stock cheap when the company has good fundamentals and it trades at a multiple below its growth rate," said Cramer. "Get into CETV while it's cheap," he continued.

Head North for Natural Gas

Cramer looked to the north to recommend Canadian Natural Resources (CNQ Quote - Cramer on CNQ - Stock Picks), the second largest oil and natural gas producer in Canada, as the last in his series of "catch-up" stocks that lag against their peers.

According to Cramer, CNQ has been under-performing due to delays and cost overruns associated with the company's Horizon oil shale project. This project, once online, has the capacity to produce up to 110,000 barrels of oil a day.

"This is huge," said Cramer, who noted that many investors has lost sight of the project's true potential amidst the flurry of negative media reports.

He noted that CNQ's current oil production is only 609,000 barrels of oil a day. In addition, CNQ has the second largest land position in Canada's oil share region. The company is estimated to have up to 3.6 billion cubic feet of potential reserves.

Cramer said he thinks CNQ could become the next Apache (APA Quote - Cramer on APA - Stock Picks) or Anadarko (APC Quote - Cramer on APC - Stock Picks). He noted the stock trades at just 13.1 times expected earnings while the industry average multiple is 13.9.

Cramer said CNQ deserves a premium multiple once the Horizon project comes online in the third quarter of this year.

Am I Diversified?

Cramer responded to callers seeking advice on portfolios.

The first caller's portfolio included Triple-S Management (GTS Quote - Cramer on GTS - Stock Picks), Gushan Energy (GU Quote - Cramer on GU - Stock Picks), Petrobras (PBR Quote - Cramer on PBR - Stock Picks), LKQ Corp (LKQX Quote - Cramer on LKQX - Stock Picks) and Mobile Telesystems (MBT Quote - Cramer on MBT - Stock Picks).

After some thought, Cramer blessed it as different enough to make the grade.

The second caller's top holdings included Pepsi (PEP Quote - Cramer on PEP - Stock Picks), Johnson and Johnson (JNJ Quote - Cramer on JNJ - Stock Picks), Nike (NKE Quote - Cramer on NKE - Stock Picks), Johnson Control (JCI Quote - Cramer on JCI - Stock Picks) and ExxonMobil (XOM Quote - Cramer on XOM - Stock Picks).

Cramer said it was "a fabulous portfolio."

The third caller's portfolio had Boeing (BA Quote - Cramer on BA - Stock Picks), Caterpillar (CAT Quote - Cramer on CAT - Stock Picks), Southern Copper (PCU Quote - Cramer on PCU - Stock Picks), Procter and Gamble (PG Quote - Cramer on PG - Stock Picks) and Wells Fargo (WFC Quote - Cramer on WFC - Stock Picks) as its core holdings.

Cramer blessed this portfolio as diversified with many of his favorite names present.

The final caller's portfolio included Wells Fargo (WFC Quote - Cramer on WFC - Stock Picks), McDonald's (MCD Quote - Cramer on MCD - Stock Picks), Walt Disney (DIS Quote - Cramer on DIS - Stock Picks), PG&E (PCG Quote - Cramer on PCG - Stock Picks) and Dow Chemical (DOW Quote - Cramer on DOW - Stock Picks).

Cramer also thought this portfolio was fantastic.

Mad Mail

In this segment, Cramer told a viewer to sell Carnival Corp (CCL Quote - Cramer on CCL - Stock Picks).

Cramer told the second viewer that he felt Wal-Mart (WMT Quote - Cramer on WMT - Stock Picks) was a strong buy, while he told a third viewer that its time to sell Washington Mutual (WM Quote - Cramer on WM - Stock Picks).

Lightning Round

In the Lightning Round, Cramer was bullish on Merck (MRK Quote - Cramer on MRK - Stock Picks), Schlumberger (SLB Quote - Cramer on SLB - Stock Picks), Boeing (BA Quote - Cramer on BA - Stock Picks) and Mastercard (MA Quote - Cramer on MA - Stock Picks).

Cramer was bearish on Veolia Environnement (VE Quote - Cramer on VE - Stock Picks), Aircastle (AYR Quote - Cramer on AYR - Stock Picks), Jefferies Group (JEF Quote - Cramer on JEF - Stock Picks), Motorola (MOT Quote - Cramer on MOT - Stock Picks), Cheniere Energy (LNG Quote - Cramer on LNG - Stock Picks), Pfizer (PFE Quote - Cramer on PFE - Stock Picks), Micron Technology (MU Quote - Cramer on MU - Stock Picks), Visa (V Quote - Cramer on V - Stock Picks) and Manitowoc (MTW Quote - Cramer on MTW - Stock Picks).

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

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