Cramer's 'Mad Money Recap': Hot Chilean Stocks

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"Even with their economy cooling, Chile still has a hotter economy than we do," Jim Cramer told viewers of his "Mad Money" TV show Thursday.

Cramer returned south of the border to once again tout Chile as his favorite South American country.

Cramer said than even with the economy slowing, Chile still posted GDP growth of 3.5% for 2007. The country's economy is driven largely by the copper market, where it accounts for nearly one-third of global copper production.

"This is a stealth play in China," said Cramer, who explained that as China grows, so will Chile. That's why he continued to recommend that 20% of investors' portfolios remain overseas.

Cramer again recommended Banco Santander (SAN Quote) as one of his favorite Chilean stocks. Santander has the highest credit rating of any South American company and is also the largest, most efficient and most profitable of all the Chilean banks, he said.

Santander had asset growth in 2007 of 23% and posted a 25% return on equity. The stock is up 20%, including dividend payments, since Cramer last recommended the company back on Oct. 11, 2007.

"You won't find this growth in any U.S. bank," Cramer told viewers. He noted Washington Mutual (WM Quote) was down 70% in the same period, CitiGroup (C Quote), down 49%, and Wachovia (WB Quote), down 44%.

Cramer also liked Banco Santander because of the highly regulated nature of the Chilean banking system. He explained that with such high barriers to entry, existing banks are protected from new entries into the market. This explains why the top five largest banks in Chile control up to 80% of the banking market in that country.

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