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

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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 16,380.41 +263.17 1.63%
S&P 500 1,886.76 +24.00 1.29%
NASDAQ 4,258.4380 +41.0480 0.97%

Brokerage Partners

Rates from Bankrate.com

  • 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