Cramer's 'Mad Money' Recap: CEOs Are Better Than Congressmen

"Yum is not the kind of company to sit and wait for the China economy to improve on its own," he said. Yum's strategy is to expand from the tier one cities in China to the outer cities where costs are low and the competition is rare.

"If Yum takes a lesson from Altria (MO) and breaks up, I think the sum of its parts could be worth $77 a share," he said. That's up about 14%. The domestic business is strong enough to stand on its own and the international business is sizzling.

"I think the bulls are right and the bears are letting a short-term Chinese speed bump scare them away from what I regard as a great story," Cramer said.

"The story would be better if Yum breaks itself up into a fast-growing international company and a value-oriented domestic play. That could create instant profits for all aboard," Cramer said.

No Huddle Offense

Government has been known to make some stupid investments, Cramer said, but one of the best ever made was when the federal government invested in American International Group (AIG) during the 2008 financial crisis.

Today, Cramer said, the government announced it would be selling its remaining stake. The government did the right thing in putting money into AIG, he said, and he thanked in particular Tim Massod, who was in charge of the Treasury's TARP unit overseeing AIG, for not selling government shares until it could get a good price, and AIG CEO Bob Benmoshe, who "came in and through sheer force of will fixed the darn thing and now it's riding higher than before."

This was one case, Cramer said, when the federal government "sure made shareholders winners."

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

-- Written by Anthony Buccino and Margo D. Beller in New York.

At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, AIG, SLB.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC Universal or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

« First ‹ Previous 1 2 3