Chinese President Hu Jintao said he wants to be a regular at Starbucks(SBUX Quote), and the company expects China to be its biggest overseas market, Jim Cramer said on his "RealMoney" radio show Wednesday.
Ever since the coffee chain said that China would be its primary growth market, the stock has gone higher. Cramer believes that there's more upside, thanks to overseas expansion, and that he likes the stock and its last earnings report. Cut back to four years ago when Yum! Brand's(YUM Quote) KFC said China would be its biggest market. Cramer pointed out that the stock went up. American Standard Companies(ASD Quote) has been hurt by poor overseas sales, but it went higher after it turned those sales around, Cramer said. And shares of United Technologies(UTX Quote) are higher because the company's overseas business is booming, he added. The lesson: "Borders are for countries, not for companies," said Cramer. "You can be patriotic all you want. But if you want to make money ... I need you to think globally," he said. In news from the Middle East, Cramer said that Abu Dhabi has announced that it will spend $2.5 billion to build a petrochemical complex. Fluor(FLR Quote) is a company that he believes will profit from this deal. He also said that ABB(ABB Quote), which provides power and automation technology, will also win, and that similar contracts could go to Foster Wheeler(FWLT Quote). Cramer owns both stocks for his ActionAlerts PLUS charitable trust portfolio.
Cramer said that with oil prices so high, people are eyeing coal as a viable alternative energy source for everything from fuel to making paint, fertilizers and plastics.
Cramer said that the technology to make the different building blocks that are most often made with oil has been around since the Weimar Republic; and he believes that coal, which the U.S. has in abundant supply, will be used more frequently.
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