Cramer's 'Mad Money' Recap: Finding Sustenance

 

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In this choppy market and slowing economy, "stop crying over spilt milk and buy Dean Foods (DF)," said Jim Cramer on his "Mad Money" TV show Friday.

Now is the time to own stocks that are safe and can make money in good times or bad, said Cramer. That means, above all, you want to own food stocks.

Dean Foods is especially well-positioned because with a 30% market share, four times the market share of its next largest competitor -- and as high as an 80% market share in some local markets -- Dean Foods is large enough to have pricing power. That means it can pass on higher energy costs to customers, said Cramer. Dean Foods should also see increasing margins in the next year as it shuts down some facilities, he said.

In response to a question about Kraft Foods (KFT), don't buy, said Cramer. Kraft is a subsidiary of Altria (MO), and you never want to buy the stock of a subsidiary because the parent company can do whatever it wants with it, said Cramer. Buy Altria instead, he said, adding that he believes Altria is worth $105.

A caller asked about Buffalo Wild Wings (BWLD). Cramer said that stock was "way too speculative at this point."

Enbridge Provides Safe Passage

Cramer is bullish on Enbridge (ENB), a Canadian pipeline company that is building a pipeline from the oil sands of Alberta to British Columbia, he said. This pipeline will open up Alberta's oil to the Chinese and California markets.

Although the price of oil has come down from its highs, it's still plenty high for oil sands to be profitable, said. Cramer. The company pays a "pretty substantial dividend" and is a "little-hyped play on the very hot oil sands," he said.

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Dow Jones S&P 500 NASDAQ 10-Year Note
12,801.23 1,342.64 2,903.88 19.69
Oil *
117.67
DOWN
89.23
DOWN
9.31
DOWN
23.35
DOWN
0.78
10 Yr
1.97%
SPDR Gold
167.14
-0.69%
-0.69%
-0.80%
-3.81%
Data delayed 20 minutes

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