RealMoney Radio: Foreign-Market Muddle

Although there are places other than the U.S. that have "incredible growth," such as China and India, it's not easy for companies to make money in these foreign markets, Jim Cramer said on his "RealMoney" radio show Tuesday.

Companies want to take advantage of these "giant populations," but other than Yum! Brands' (YUM Quote - Cramer on YUM - Stock Picks) KFC fast-food chain and Starbucks (SBUX Quote - Cramer on SBUX - Stock Picks) maybe in a couple of years, "no one has been able to make money off of these markets," Cramer said.

The Chinese don't want a lot of U.S. products and prefer their own equipment. That has "stung" Lucent (LU Quote - Cramer on LU - Stock Picks), Cramer said.

In fact, other than Wynn Resorts (WYNN Quote - Cramer on WYNN - Stock Picks) and Las Vegas Sands (LVS Quote - Cramer on LVS - Stock Picks), "there's been nothing new in the profit picture in China for years," he said.

Wal-Mart (WMT Quote - Cramer on WMT - Stock Picks) is now making the move to India, but nobody has considered that maybe the Indians don't want Wal-Mart and won't respond favorably to it, he said.

"Don't get your hopes up with Wal-Mart," Cramer said. Because it's not likely that Indians are any more drawn to "crummy" places like Wal-Mart than Americans are, he said.

"It's time to buy into some weakness" Cramer said, switching topic.

He said he likes the drug stocks here and is no longer worried about them with Democrats back in Congress, "given the power of pharma and the positive way seniors view the Medicare Part D plan."

Moreover, Cramer considers Schering-Plough (SGP Quote - Cramer on SGP - Stock Picks) and Johnson & Johnson (JNJ Quote - Cramer on JNJ - Stock Picks), both of which he owns for his charitable trust, Action Alerts PLUS, to be "exceptional stocks" that have been hammered endlessly ever since the elections.

It's time to start picking at these, he said, because the "drug stock negativity is way over done."

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