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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
(AKO.A - Get Report)
, a Coke bottler. "You should never own" a bottler, said Cramer. The fund also owns
Compania Cervecerias Unidas
, another beverage company, which Cramer doesn't like.
Instead of buying the fund, Cramer recommends buying the fund's best stocks:
(ENI - Get Report)
Vina Concha y Toro
(VCO - Get Report)
Sociedad Quimica y Minera
(SQM - Get Report)
. 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
(CL - Get Report)
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 Bets
has agreed to be bought out by
, Cramer believes
(CCK - Get Report)
(AIN - Get Report)
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.