Cramer's 'Mad Money' Recap: Homex Bound

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The Fed is trying to kill the housing market, Jim Cramer said Tuesday on his "Mad Money" TV show.

That means it's time to "ring the register" on homebuilder stocks. However, the one homebuilder stock "the Fed can't crush," said Cramer, is Homex Development (HXM Quote) because it's located in Mexico.

Mi Casa Es Su Casa

Cramer acknowledged that investing in Latin America isn't without certain risks, which are "real concerns." But Cramer is willing to look past those risks because of Homex's growth.

Sales have tripled in the past two years, and the company has become more profitable as measured by return on invested capital.

Homex trades at 12 times 2006 earnings, which is in line with other Mexican homebuilders. However, he said, Homex should trade at a premium because it is the only Mexican homebuilder listed on the New York Stock Exchange, and its books are kept according to U.S. accounting standards.

Finally, Morgan Stanley recently initiated coverage of Homex with an overweight rating.

A caller wanted to know if Cramer was still bullish on Bancolombia (CIB Quote), another Latin American stock.

Cramer said he thought Bancolombia was still worth buying, but he wasn't as bullish on it after the stock's roughly 40% rally in the past several months.

Another caller wanted to know why Cramer was focused on Mexico. He said the country is self-sufficient in energy. Thus, its economy doesn't have the headwind of oil that the U.S. economy has.

Adams Respiratory

Cramer was bullish on Adams Respiratory Therapeutics (ARXT Quote). Adams, which became public last month, closed up nearly 9% Tuesday after Morgan Stanley initiated coverage of the stock with an overweight rating.

Cramer also spoke highly of the stock later in the afternoon on his "RealMoney" radio show. Even though the stock soared, Cramer still likes it because it's a "long-term winner."