Cramer's 'Mad Money' Recap: Pedal to the Metals
Click here for an archive of Cramer's "Mad Money" recaps.
After the Fed's rate cut, it's time for investors to make some speculative mining plays, Jim Cramer told viewers on his "Mad Money" TV show Friday.
The half-point cut on Tuesday has raised the value of hard assets against paper money. Additionally, lower Fed rates lead to higher economic activity, which leads to more consumption of metals, Cramer said.For a sexy speculative buy, Cramer recommended Lundin Mining (LMC). Although the company has had its ups and downs, Lundin now deserves "two thumbs up." Lundin has major exposure to four metals: zinc, copper, nickel, and lead. After acquiring Tenke mining and Rio Narcea earlier this year, Lundin is bigger than ever. By purchasing Rio Narcea and Tenke, Lundin has increased its nickel and cobalt exposure, Cramer said. Asian consumption of zinc "continues unabated," driving up zinc's price by 3% this week, Cramer said. Lundin has captured this price rise, so its earnings should increase. With China and India importing record amounts of zinc and nickel, respectively, the increase in demand should continue. Additionally, Lundin has seen some insider activity. Lundin is a great buy at $12 per share, Cramer said. Cramer's second metal pick, Horsehead Holding (ZINC), looks like "a solid blue chip." An "under-the-radar IPO" in August, Horsehead is almost certainly undervalued, Cramer said.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV