Cramer's 'Mad Money' Recap: Latin Lessons

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Peru is the "new capitalist paradise," Jim Cramer told viewers of his Mad Money TV show on Tuesday.

"Down there is better than up here," and he likes Credicorp (BAP Quote), Lan Airlines (LFL Quote), Petrobras Energia Participaciones (PZE Quote) and Southern Copper (PCU Quote).

Latin America is benefiting from great natural resources, which are contributing to the rise of a middle class. The countries also now have better governments than they used to, and "they got religion about finance," Cramer said.

Credicorp is a financial services holding company based mostly in Peru. It also has some exposure to Bolivia and Columbia, which Cramer likes. Credicorp is a play on the credit revolution in Latin America, where it has become possible for more people of the middle class to take out mortgages and personal loans, said Cramer.

Lan Airlines is benefiting from a bull market in air travel in Latin America. The stock pays a 3.8% dividend and isn't "locked in a fight to the death" with its unions, like some U.S. airlines, said Cramer.

Petrobras Energia Participaciones is a Latin American energy company with 8% of its business in Peru. Cramer said he's bullish on anything oil in Latin America.

Finally, Southern Cooper is "the easy one," said Cramer. "If there is one reason why Peru is hot, it's copper," he said. The stock pays a "huge dividend," as well.

Cramer said Southern Copper recently did an elaborate refinancing and raised much more money than it thought it could. The stock was at $42 then. It's at $53.90 now.

Cramer recommended not buying these stocks at the open Wednesday if they are up big. Wait until they come in, he said, before pulling the trigger.