This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Cramer's 'Mad Money' Recap: Putting Europe Into Perspective

Celanese uses so much natural gas that a $1 move in the price of the commodity translates to between 15 cents and 20 cents a share to the company's bottom line. But Celanese isn't content just making money from the low price of natural gas, it's also investing in a new facility in Texas that will come online in 2015 and add even more to the bottom line.

Cramer said Celanese is also a turnaround story, as the company missed earnings by 5 cents a share last quarter but now has a new CEO with the street cred to get the job done. Nearly 30% of Celanese' profits stem from Asia, said Cramer, and the company is now selling for just seven times earnings with a 10% growth rate. A bargain by any metric.

Both Sides of the Latte

What should investors do with shares of Starbucks (SBUX) after the company received an upgrade from Oppenheimer & Co. on the same day it received a downgrade from UBS? Cramer reminded viewers that when analysts disagree, investors win as they get to see both sides of the coin.

While both firms still rate Starbucks a buy, the bear case said Starbucks shares are likely to trade sideways, thanks in part to a slowdown in domestic sales. Indeed, the company did shave 1 cent a share off its earnings estimates as part of a recent acquisition, but the firm also noted that Starbucks' European business will be a hurdle.

But the bull case said deceleration of Starbucks' earnings are unlikely as the fundamentals remain strong and the company has a slew of new products debuting this summer. In addition to new drinks, Starbucks is also taking share in the single-serve coffee market, will be entering the lucrative energy drink market as well as stepping up its expansion in China.

Cramer said Oppenheimer has a proven track record as it recommended selling McDonald's (MCD), a stock which he owns for his charitable trust, Action Alerts PLUS , at its highs a few months back. Cramer said with CEO Howard Schultz still at the helm of Starbucks, it's hard to bet against this winning company with a winning analyst behind it.

2 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs