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"No area has attracted more interest than China since the beginning of 'Mad Money,'" Jim Cramer told viewers on Wednesday.
Cramer said he believes that China is a "nasty" place to invest in because it has a government that Cramer doesn't trust. But because it's the week of his 500th show, despite his reticence to invest there, Cramer said he's giving his viewers what they want.
So, on this night only, kicking and screaming, Cramer is telling people how to play China so they do it right.
Cramer, who dedicated Tuesday's entire show to big pharma, said that tonight, he's going to give people a double dose of Chinese stocks: the stable, reliable variety and the risky, exciting and speculative names.
But he stressed that market players must wait for a pullback before buying any of these stocks.
as his "big three Chinese plays."
"Don't buy these now," he reiterated. "Wait for weakness, then buy."
CEO is the No. 1 offshore driller in China and is partly owned by the Chinese government, which means it has "serious anticompetitive advantages," Cramer said.
Plus, in 2008 and 2009, the company should have a 30% increase in production. Although CEO's 3.2 % yield isn't comparable to the 10-Year Treasury's, the stock should see some upside if buyers purchase the stock after it pulls back, he said.
Moving on, CHL has 68% of all the mobile subscriptions in China, Cramer said. Although there are rumors that the wireless industry in China could be restructured, it could take years for CHL to lose its market leading position, he said.
In addition, it's promising that the wireless penetration is expected to double in the country in the next few years.
For a Chinese stock with a big dividend, Cramer suggested that investors take a look at SSW, a play with a 6% yield. This company, he said, is a play on the Chinese trade surplus. It is the largest company in its industry, and it's making money "hand over fist."
Cramer said he wouldn't be venturing into China to invest in any stocks, including these three, for his charitable trust,
Action Alerts PLUS, but if people are adamant about investing in that country, they should consider CEO, CHL and SSW.
In his "Mad Mail" segment, Cramer told a viewer that since the
has decided not to ease rates, other than a couple of select retail names, such as
(which he owns for his charitable trust) and maybe
, retail is not for him right now.
Responding to another mailer, Cramer said he considers
"the only gold company that is not a speculation" that he would recommend on his show.
Am I Diversified?
In his "Am I Diversified?" segment, Cramer's first caller said he owned the following five stocks:
, a stock Cramer owns for his charitable trust.
Cramer called the portfolio "diversificated."
The second player called out the following five names:
andSears, the latter three which Cramer owns for his
Action Alerts PLUS portfolio.
Cramer called out a pair in Apple and Dell and said that as much as he likes Dell, it's a sell here.
Cramer's last caller asked if he was diversified with these five:
Bank of America
Cramer told the caller that his portfolio was indeed diversified.
Speculative plays are risky by nature, but buying a speculative stock in China is even riskier than buying the normal speculative stock, Cramer told viewers.
He called out two Chinese advertising stocks as his top speculative picks in the country:
( FMCN) and
Specializing in LCD displays, built-in displays and digital billboards, Focus Media is the largest display-advertising company in the country. Moreover, it has "major momentum" and "consistently" raises its numbers, Cramer said.
Meanwhile, Baidu is the only company "beating
at its own game," he said. The company's market cap is 1/125th of Google's, which is "ridiculously low," Cramer added.
Baidu's price may seem high because it's had a huge run and just raised guidance, but its potential for growth means it could be still be "incredibly undervalued."
That said, Cramer let viewers know that he wouldn't be buying either of these two himself for any reason.
Cramer was bullish on
Great Lakes Dredge & Dock
Air Products & Chemicals
Jack in the Box
Chipotle Mexican Grill
Cramer was bearish on
Aventine Renewable Energy
Warner Music Group
For more of Cramer's insights during the Lightning Round, click here
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At the time of publication, Cramer was long Halliburton, Toyota Motor and Sears Holdings.
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."
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