Cramer's 'Mad Money' Recap: Liquor Is Quicker

Click here for an archive of Cramer's "Mad Money" recaps.

---

It's time to dip into the liquor business, Jim Cramer told viewers of his "Mad Money" TV show Thursday, and that means it's time to look at Diageo(DEO Quote).

He said this is the company to consider for investors who want to be in the high end of the liquor business. Diageo's product line includes such brands as Smirnoff vodka, Johnnie Walker scotch and Guinness stout.

He called it an "unsponsored" company with great growth and a great dividend.

"This stock is stuck in the mud and I want it unstuck, and that's why I picked it," Cramer said.

Profits at the London-based company, which reported its six-month results Thursday, have soared. Cramer cited Diageo's 7% American growth, 12% growth outside of America and 12% EPS growth, which he believes could go higher, as well as its "juicy 4.5% dividend."

Plus, Cramer believes that the stock is cheap, stuck as it has been near $60.

A caller wanted to know if Cramer would recommend Constellation Brands(STZ Quote), which owns Mondavi vineyards.

While Cramer said she was right to make the comparison, he said that Constellation's last quarter was a "disaster," and that it made him think that the wine and beer markets were not for him.

While Cramer has said time and again to stay away from the automobile and Big Pharma sectors, it's not because he hates them per se. He said he just dislikes the U.S. automakers and drugmakers.

It's not for political reasons, he said, but because there are "much, much better opportunities for growth if we get out of the U.S.A."