Cramer's 'Mad Money' Recap: Schering-Plough's Disastrous Day

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"I know I have let down my viewers," Jim Cramer told viewers of his "Mad Money" TV show Monday.

He apologized to viewers for standing behind Schering-Plough SGP, a stock which he owns for his charitable trust, Action Alerts PLUS.

3 Stocks I Saw On TV

The stock lost nearly 26% of its value on Monday after the company's anti-cholesterol drug was harshly criticized at a cardiology conference.

Cramer, who got behind Schering early largely because of company Chairman and CEO Fred Hassan, welcomed Hassan to the show to ask him what the company was going to respond to the bad news.

Hassan defended the company, saying Schering's products and outlook remains the same. He was frustrated that a scientific forum was not conducted to evaluate the drug.

Hasssin said that he still stands behind Vytorin, although the company has pulled much of the advertising for the drug while it reevaluates the situation.

Regarding Schering's likely earnings hit later this year, Hassan said he is focused on shareholder value and "will take tough actions" to remain profitable.

He noted that Schering is not a one-drug company, noting the strength in the company's other drugs, Remicade and Organon.

Asked to comment on the company's reluctance to offer earnings guidance, he said that Schering's philosophy is to always use caution when all of the data is not available, and that includes earnings.

Cramer said that while he felt that Schering's stock is now "ridiculously cheap," he advised investors to do their own homework and decide for themselves whether or not to continue investing in the company.

Bank on Peru

Cramer traveled to the country of Peru for his latest international stock pick.

According to Cramer, up to 20% of investors' portfolios should be invested internationally, and he feels Peru is an attractive place to invest because of its 5.4% gross domestic product growth and 2.3% inflation rate.

The Peruvian economy is on fire, says Cramer, due largely in part to a surge in mineral prices around the globe which has helped the resource laden country prosper in recent years.

Cramer recommended Credicorp BAP, a Peruvian banking and insurance powerhouse, as a proxy for Peru's growth and prosperity.

The company recently reported 10% loan growth in the past quarter and 40% loan growth throughout all of 2007. "Credicorp is the polar opposite of U.S. banks," said Cramer. "They don't have sub-prime loans down there."

Cramer also likes Credicorp for the company's cheap valuation: It trades at 11.4 times 2008 earnings estimates. He said the company deserves a premium for its excellent management and growth outlook.

A Natural Gas Bonanza

"How would you like to steal some natural gas?" Cramer asked viewers right before recommending Atlas Energy ATN as one of the most undervalued energy stocks in the market.

Atlas is not just undervalued, it's "criminally undervalued," he said, adding Atlas has humongous, yet unrecognized, reserves of natural gas in the Appalachian Mountains, primarily in Pennsylvania.