NEW YORK (
) -- There are some great stock plays coming out of Brazil, Jim Cramer said during his
segment on CNBC.
Ahead of the Olympics, Cramer announced that he would buy a steel and mineral company. His picks are
Cramer says Gerdau, a low-cost producer of steel, is a great play on Brazilian infrastructure and would own this stock right through the World Cup and the Olympics. It has a $15 billion budget for the Olympics.
Cramer owns Vale for his charitable trust.
When it comes to integrated oils, however, Cramer isn't getting behind companies like
One of the biggest initial public offerings of the year came from
Banco Santander Brasil
. Despite the deal garnering $2.02 billion, Cramer says you don't want to own the company.
Instead, Cramer says to look to its parent,
( STD), which he says is really in control. "It is one of the most responsible lenders in the world," he said.
"Utilities can be a growth business when your population is growing, and for a country that is going from pseudo-industrial to full industrial," Cramer said. As population rises in Brazil, power demand will also increase.
Thus, Cramer also advises to take advantage of
"I prefer this to any American utility," Cramer said. "I used to recommend
, but it hit $45 and that's my price target."
-- Reported by Jeanine Poggi in New York.
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