Cramer's 'Mad Money' Recap: Chile Con Economy
Click here for an archive of Cramer's "Mad Money" recaps.
Investing in Latin America has been a recurring theme on Jim Cramer's "Mad Money" due to the strong economic conditions there. Cramer's latest idea on how to capitalize is through Chile he told viewers Tuesday. Chile is especially attractive, he said, because of the nation's 4% budget surplus, which is bullish for business.
One way to invest in Chile would be to buy shares in The Chile Fund. But, Cramer is leery of the fund because one of its largest holdings is Embotelladora Andina (AKO.A), a Coke bottler. "You should never own" a bottler, said Cramer. The fund also owns Compania Cervecerias Unidas (CU), another beverage company, which Cramer doesn't like.Instead of buying the fund, Cramer recommends buying the fund's best stocks: Enersis (ENI), Vina Concha y Toro (VCO) and Sociedad Quimica y Minera (SQM). These are the "creme de la creme" of Chilean stocks, he said. Enersis is an electric utility company that is growing along with the demand for power in Chile. "I would buy this one," said Cramer. Vina Concha y Toro is a producer of "good wine from Chile at a nice price point," he said. Sociedad Quimica y Minera owns the world's largest lithium mine, the key ingredient in lithium batteries. The stock is in 'mon back* territory, said Cramer. As a way to play Chile through an American company, Cramer said Colgate-Palmolive (CL) is the biggest brand name in Latin America. He believes Colgate is a buy, and below $50, it warrants a 'mon back. Colgate's shares closed Tuesday at $53.53.
Best Asbestos BetsNow that Georgia-Pacific (GP) has agreed to be bought out by Koch Industries, Cramer believes Crown Holdings (CCK) and Albany International (AIN) may be the next big industrial takeover targets. The main thing Crown and Albany have in common with Georgia-Pacific, said Cramer, is both companies have asbestos issues that are under control and almost behind them.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV