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Jim Cramer's 'Stop Trading!': Rio's Right

06/20/08 - 03:32 PM EDT

TheStreet.com Staff

Buy Companhia Vale Do Rio Doce(RIO - Cramer's Take - Stockpickr), Jim Cramer said on CNBC's "Stop Trading!" segment Friday.

Beginning today's segment, Cramer mentioned Ambac(ABK - Cramer's Take - Stockpickr), saying that the losses that mutual funds are suffering are causing what we are currently seeing. He said that the "value guys seem to have run out of capital."

Moving along, Cramer said to "stay away from banks," and how Suntrust(STI - Cramer's Take - Stockpickr) use to be "the gold standard."

Going into China stocks, Cramer said that he liked Gushan Environmental Energy(GU - Cramer's Take - Stockpickr). He said that it is the only Chinese stock he is recommending. Cramer said that he likes this alternative energy company and they "will be inventive."

Next, Cramer discussed China and commodities with Rio Tinto's(RTP - Cramer's Take - Stockpickr) CEO, Tom Albanese. Cramer questioned him about what if Toyota(TM - Cramer's Take - Stockpickr) makes the battery powered car while Albanese pointed out that it takes twice as much copper to produce a hybrid or battery powered car.

Another key ingredient that was not overlooked is aluminum, which Albanese said would increase in demand as it is utilized to make lighter vehicles.

Wrapping up the segment, Cramer said that he had one Brazil play. He said that Companhia is like Rio Tinto and he feels that it is "cheapest in the world right now," and that the decline in Brazil's market "makes no sense."

At the time of publication, Cramer had no positions in any of the stocks mentioned.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. Click here to order Cramer's latest book, "Mad Money: Watch TV, Get Rich," click here to order his book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

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