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NEW YORK (
) -- "Gold is not just another commodity," Jim Cramer told the viewers of his
TV show as he once again urged investors to put up to 20% of their portfolios into gold.
Unlike other commodities such as oil, grain or copper, gold is a currency, he said, adding it's what people buy when they don't trust their own currency. Cramer said it's what the Chinese and the Indian people buy first when the discover newfound wealth. "No one who's bought gold since 2001 has lost money," Cramer told viewers.
As the big G20 summit marches on, Cramer said it's clear that America is serious about boosting its exports by weakening the U.S. dollar. He said this move will once again shake up the gold markets, sending countless investors, funds and governments into the already rising currency that is gold.
Cramer once again recommended four ways to invest in gold. He said investors can buy gold coins or they can buy gold bullion. Investors can also pick up shares of the
SPDR Gold Shares
, an ETF that tracks the price of gold. Then, of course, there are the mining stocks.
Cramer once again gave the nod to
, along with the speculative
, a stock which he owns for his charitable trust,
Action Alerts PLUS.
How much further can the gold stocks go? Cramer said if he bought up every share of every gold mining stock out there, he would have a market cap that's just one and a half times the size of
, another Action Alerts PLUS favorite. Given this minuscule valuation, Cramer said the gold stocks have a long road ahead of them.
Hong Kong Telecom Play
In the "Executive Decision" segment, Cramer spoke with Niq Lai, CFO of Hong Kong's
City Telecom HK
( CTEL), a stock Cramer last recommended on March 18. Since then, shares of City Telecom are up 6%, or 8% including dividends.
Lai explained that City Telecom has shifted its strategy from aggressively building its subscriber base to monetizing that base. The company currently enjoys over 50% market share in Hong Kong and on Sept. 1, doubled its price for its "triple play" service to $26 per month. For that new price, customers enjoy a one gigbit per second fiber service to their home.
Lai said his company is also big on wifi. He said that devices like Apple's iPad can handle wireless speeds of 20 to 30 megabtyes per second, which is why receiving just 10 or 20 megabits per second to a home makes no sense.
When asked about the company's dividend, Lai noted that City Telecom will complete its network buildout by the end of 2011, which will allow the company to essentially double its cash flow and its dividend to share holders.
Cramer told viewers that very few stocks offer growth plus a great dividend, but City Telecom is one company that can aggressively raise its dividend. He gave it a buy.
In the Thursday "Sell Block" segment, Cramer opined on
, an Action Alerts PLUS stock that's gone horribly wrong.
Cramer said pointedly that Cisco "screwed up," and is no longer the tech bellwether it once was. He said the 17% haircut the stock suffered today will be nothing compared to when hedge funds and mutual funds begin dumping their positions before year's end. Cramer called Cisco's outlook "frightening."
But Cramer noted that what's bad for Cisco is not bad for other tech companies that have a handle on their business. He said while Cisco may be a "pitiful, helpless giant," others, like
, two other Action Alerts PLUS stocks, along with
, are all screaming buys, especially since they were taken down along with Cisco.
"Cisco deserves to be in the sell block," said Cramer, "the rest of tech doesn't."
A Big Lead
In a second "Executive Decision" segment, Cramer spoke with Jeff Bradley, CEO of
Global Specialty Metals
, a stock Cramer last recommended on Dec. 9, 2009. Shares of Global are up a stunning 95% since the recommendation.
Bradley attributed Global's success to the strength of the end markets they serve. He said silicone is in hundreds of products people use every day and demand from emerging markets has been terrific. Bradley said that next year will be even better, as all of the company's contacts will be renewing at higher prices.
Asked why competitors couldn't enter the market and take share, Bradley said it would take about $180 million and three to four years for a competitor to build a new factory that could issue a challenge to the company. He said that a rival would need to address power concerns and permits, plus they would need to be close to the raw materials needed.
When asked about solar power, Bradley said solar is here to stay, thanks in part to higher oil prices. "You can't make a solar panel without our stuff," he noted.
Cramer reiterated his recommendation of Global Specialty Metals.
Cramer was bullish on
Deere & Co
Chipotle Mexican Grill
Think there's a bubble in copper? Cramer said, think again. He said he's amazed at the media's inability to discern a speculative bubble from genuine demand.
Cramer said China is driving the demand for copper, as the country now use 30% of all of the world's copper. That number is up from just 10% a decade ago. Cramer said the increase in demand is evident even in the scrap copper market, where scrap prices are rivaling that of new, clean copper.
"This rally is for real," Cramer concluded. He recommended the
Dow Jones-UBS Copper Trust
as the way to play it.
--Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer was long Novagold, Apple, Cisco, Oracle, EMC.
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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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.