Cramer's 'Mad Money' Recap: Corn Is the New Oil
Click here for an archive of Cramer's "Mad Money" Recaps.
Archer Daniels Midland (ADM) may not just be the supermarket to the world; it may also become the gas station to the world, Jim Cramer said on "Mad Money" Monday evening.
Cramer was talking about a research report by Citibank's David Driscoll that said ADM is considering investing in production capacity to produce corn-based plastics.
This is just the thing that Archer Daniels has needed to jump-start its stock price, said Cramer. "We can make plastic out of corn. We should make plastic out of corn, and we will make plastic out of corn. You must own the stock of Archer Daniels Midland."A caller wanted to know, after years of hype, how long it would it take for corn-based products like ethanol to become viable in the marketplace. Cramer said with oil at $60, "the market is saying the time is now." Another caller wanted to know what energy play is the safest at this point. Cramer said natural gas was the safest play; it should play catch-up to oil.
Green Cliffs of DoverDover (DOV) said today it is buying microacoustic component manufacturer Knowles Electronics, which makes products that go into hearing aids and cell phones. What's a heavy manufacturer like Dover doing buying an electronics company like Knowles? Cramer said Dover is taking its stock-price multiple into its own hands. The company, which sells at a below-market multiple, is "going toward growth." Cramer approves. He said that Dover's acquisition "may seem a little shameless, but I know it's really smart. Own Dover." A caller asked if Dover's acquisition of Knowles might look similar to Tyco (TYC) before it imploded. Cramer strongly disagreed and said the difference is in the two companies' managements. "I think Dover's is good," he said. "I thought Tyco's was bad. That's all that matters."
Stop That TrainIn stock news after the bell, Cramer said that WPT Enterprises (WPTE) reported quarterly results that were simply the "ultimate in train wrecks."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV