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NEW YORK (TheStreet) -- With the markets taking a rare pause thanks to Hurricane Sandy, Jim Cramer told his "Mad Money" TV show viewers Tuesday that he's had a chance to catch his breath in the middle of a busy earnings season to make some observations.
Cramer said that for the past few years, U.S. companies have been aggressively trying to distance themselves from the sluggish U.S. market, opting to "go global" and expand into Europe, China and emerging markets. That strategy worked well, he said, up until a few years ago when Europe's financial mess brought the global economy to a screeching halt. Now, the evidence is clear. Those companies that now rely on business overseas are doing poorly, while those still based largely in the U.S. are flourishing.That's certainly the case with Ford Motor (F), a company whose strength in the U.S. was almost completely wiped out by losses in Europe. Banks like US Bancorp (USB) and Wells Fargo (WFC), a stock he owns for his charitable trust, Action Alerts PLUS, are firmly rooted in U.S. mortgages, said Cramer, and they are performing well, as are others like Whirlpool (WHR). Meanwhile, companies like Owens Corning (OC) are floundering as their big bet on Europe failed to pay off. Likewise with Stanley Black & Decker (SWK) and luxury retailer Coach (COH). Cramer said this season's earnings have proven time and time again that it's hard to make money overseas, and the easy money is once again back in the U.S. of A.
Buying Into News CorpBreaking up is easy to do, Cramer reminded viewers, as he highlighted yet another company that's splitting itself apart in an effort to unlock value. He said his charitable trust, Action Alerts PLUS, has been buying shares of News Corp (NWSA) ahead of the company's plan to spin off of its publishing assets. Cramer said News Corp is a "best of breed" media company, with solid assets in its Fox News cable franchise, its Fox TV network and its satellite TV and content businesses. The company does have an Achilles heel, however, and that's its slow-growing publishing division, which was hurt by a very publicized phone-hacking scandal last year. Publishing represents 27% of News Corp's revenue and that is the division the company is set to jettison next year.
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