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NEW YORK (
) -- "The rolling bull market continues," an upbeat Jim Cramer told the viewers of his "Mad Money" TV show Tuesday.
He said on a day when the major averages were only up fractionally, the smart money was moving out of technology, oil and banks stocks, and into a new sector that's ready to move.
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Cramer said that agriculture is the next sector that's ready to break out, after the Department of Agriculture raised its spot price forecast last week citing production shortfalls.
He said that seed giant
confirmed the strength in the sector when it came out with positive news at its recent analysts meeting.
Cramer said Monsanto is the first "buy, buy, buy" in the group, now that the company can clearly see the light at the end of the tunnel for this long underperforming sector.
He also gave the nod to the fertilizer stocks of
. Cramer said that while Potash remains the cheapest in the group, his favorite remains
for its 6.4% dividend yield.
No agriculture rally would be complete without
, said Cramer.
He said Deere no longer suffers from a strong dollar, and with 12 analysts rating the company a "hold," there's plenty of room for upgrades. Deere reports in just five days, and Cramer said he'd be a buyer of the stock ahead of any positive news the company is likely to report.
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In the "Executive Decision" segment, Cramer spoke with Steven Farris, chairman and CEO of
, which is leading the charge to make natural gas the bridge fuel to the future.
Farris said that Apache has grown their production 29 out of the last 30 years, and is going into 2010 with lots of momentum. He said the company still has lots of ways to grow and is managing its global portfolio of properties to become a dominant player across the world.
Farris said that new technology is also helping the company remain successful. He said in Oklahoma, the company still has hundreds of locations that can be drilled using new techniques, while in other areas, like the North Sea, production is being kept alive, around 67,000 barrels a day, by new technologies.
Turning to the U.S., Farris said drilling domestically is still a good business, and with new reserves giving the country a 100 year supply of natural gas, he thinks investing in natural gas is the best thing the country can do to reduce carbon emissions and eliminate our addiction to foreign oil.
Cramer said Apache is one natural gas stock that doesn't need the government's blessing to do well, but as soon as Congress endorses natural gas in a big way, he said Apache will become a huge 10- to 20-year growth story.
Off the Charts
In this segment, Cramer went head to head with colleague Dan Fitzpatrick over the charts of
Nordic American Tanker
to see which bulk shipper reigns supreme.
Fitzpatrick noted that Diana Shipping has been trading in a tight range, between $12 and $15, since July, and with volatility falling, it appears that investors were losing interest in the stock. That was until recently, when volatility spiked higher, signaling the stock is now set to explode to the upside.
Fitzpatrick saw a similar trend in Nordic American, with the stock on a bearish trend since last June, getting clobbered with every rally. However recently, the stock has enjoyed an increase in volume and a spike to the upside, which made Fitzpatrick bullish on both names.
Turning to the fundamentals, Cramer said he too is turning positive on Diana Shipping. He said that dry shipping rates have been rising, as is congestion at the world's ports, both of which are good news for the company. Cramer said that of all the bulk shippers, only Diana Shipping has the cash on hand to grow its fleet to keep up with rising demand.
Cramer was also bullish on Nordic American Tanker. He said that rates for oil tankers are also on the rise, and with China banning single-hulled tankers as of Jan. 1, the company is now in the sweet spot of its sector. Cramer said while Diana Shipping is a buy, Nordic American is now a raging buy.
A Difference in Quality
Cramer spoke with Don Wood, president and CEO of
Federal Realty Investment Trust
, to see if the fears of a collapse in commercial real estate are justified.
Wood said that there is a discernible difference between those companies with quality properties and those without. He said while he's not ready to sound the "all clear" for all of commercial real estate, in the hot areas of the country, business is doing just fine.
Woods said that while the media may be reporting on a pending collapse for his sector, the successful long term investors understand the difference between a high quality company and a low quality name. "It's a night a day difference," he said.
Looking towards the future, Woods said there will be a time in the near future where the strong companies, like his, will be able to swoop in and buy great properties from lesser firms, but that time has not come yet. He said while Federal Realty did lose tenants when Circuit City and Linens & Things went bankrupt, overall his company's operating income has not suffered.
Cramer continued to support Woods and recommend Federal Realty as the stock to own in the sector.
Cramer was bullish on
( JCG) and
He was bearish on
Alaska Communications Systems
-- Written by Scott Rutt in Washington
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At the time of publication, Cramer was not long on any stock mentioned.
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