Cramer's 'Mad Money' Recap: A Public Play on Private Airports

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"Mexicans could teach us a few things about capitalism," Jim Cramer told his "Mad Money" TV show audience Wednesday.

While U.S. airports are government operated, in Mexico they are privately run on long-term leases from the government, he said.

These airport operators have low debt and generate tons of cash flow, and they've been raising fees, said Cramer. The airport operator that Cramer really likes is Grupo Aeroportuario del Sureste(ASR Quote), which translates to Southeastern Airport Group.

Cramer said that this stock is a two-part story.

First of all, it's a turnaround story. Last year, southeastern Mexico was pounded by hurricanes Emily and Wilma, which dramatically reduced international passenger travel to the area.

Cancun has not fully recovered from these natural disasters, he said, and ASR controls the Cancun International Airport, which serves the most international passengers in Latin America.

Cramer said that this region will recover in terms of tourist traffic, and when it does, ASR should, too. Its airport leases don't expire until 2048.

Even with the hurricane damage, the company's profit margins dipped by only a small percentage, he said. And this year the company faces easy earnings comparisons because of the hurricanes.

The second part of the story is the fact that ASR has monopolistic pricing power, he said.

"Airlines are a dime a dozen," said Cramer, so they can't jack up fees and keep customers. But airports are natural monopolies. He said that ASR's airport fees are up more than 25%, and there is no reason why they shouldn't keep increasing.

The stock is trading at 19 times forward earnings on 24% revenue growth, which Cramer believes makes the stock cheap.