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Americans gotta have their bling, and if you can't afford a diamond, you'll buy something from
Charles & Colvard
(CTHR - Get Report)
, Jim Cramer said Thursday on "Mad Money."
Charles & Colvard's synthetic moissanite jewels cost one-tenth the price of a diamond but are "more brilliant and more lustrous than diamonds," he said. Moissanite jewelry is carried at more than 700
stores, said Cramer, and it is being tested at
, owned by
Cramer doesn't believe moissanite will penetrate the high-end diamond market, which is in an "unbelievable bull market." He would recommend
, which owns 40% of
, as the best play on real diamonds. But Cramer said high-end and low-end jewelry market can work at the same time as we become a class society, and because "at least in the medium term, America is not going to have a strong economy."
Charles & Colvard has posted triple-digit growth since the third quarter of 2004. For 2005, earnings are expected to be up 274%, Cramer said.
"This is the right kind of company with the right kind of product and the right kind of stock," he said.
In response to a question about the high short position in Charles & Colvard, Cramer said the stock "feels a little
-like" in that shorts "don't believe it can get better."
In response to a question about
(TIF - Get Report)
, Cramer said he believes Tiffany might be ready to bounce back, and he is "upgrading Tiffany right here, right now."
Water, Water, Isn't Everywhere
A natural resource even more scarce and precious than diamonds is water, said Cramer. That may seem counterintuitive, since 70% of the earth's surface is covered by water. But it costs money to make fresh water potable, and desalinization has yet to become economical on a large scale.