Click here for an archive of Cramer's "Mad Money" recaps.
"Even with their economy cooling, Chile still has a hotter economy than we do," Jim Cramer told viewers of his "Mad Money" TV show Thursday.
Cramer returned south of the border to once again tout Chile as his favorite South American country.
Cramer said than even with the economy slowing, Chile still posted GDP growth of 3.5% for 2007. The country's economy is driven largely by the copper market, where it accounts for nearly one-third of global copper production.
"This is a stealth play in China," said Cramer, who explained that as China grows, so will Chile. That's why he continued to recommend that 20% of investors' portfolios remain overseas.
Cramer again recommended
as one of his favorite Chilean stocks. Santander has the highest credit rating of any South American company and is also the largest, most efficient and most profitable of all the Chilean banks, he said.
Santander had asset growth in 2007 of 23% and posted a 25% return on equity. The stock is up 20%, including dividend payments, since Cramer last recommended the company back on Oct. 11, 2007.
"You won't find this growth in any U.S. bank," Cramer told viewers. He noted
was down 70% in the same period,
, down 49%, and
, down 44%.
Cramer also liked Banco Santander because of the highly regulated nature of the Chilean banking system. He explained that with such high barriers to entry, existing banks are protected from new entries into the market. This explains why the top five largest banks in Chile control up to 80% of the banking market in that country.
Cramer: Two Hot Rig Stocks
var config = new Array(); config<BRACKET>"videoId"</BRACKET> = 1554907013; config<BRACKET>"playerTag"</BRACKET> = "TSCM Embedded Video Player"; config<BRACKET>"autoStart"</BRACKET> = false; config<BRACKET>"preloadBackColor"</BRACKET> = "#FFFFFF"; config<BRACKET>"useOverlayMenu"</BRACKET> = "false"; config<BRACKET>"width"</BRACKET> = 265; config<BRACKET>"height"</BRACKET> = 255; config<BRACKET>"playerId"</BRACKET> = 1243645856; createExperience(config, 8);
Finally, Cramer said he was fond of Santander's 4.5% dividend yield and the fact that it trades at just eleven times its earnings. With 13% income growth year over year, Cramer said Banco Santander is a steal.
A Red Hot Utility
Cramer also recommended Chilean utility company
as a safer, more conservative Chilean play.
Much like his recommendation of
in Brazil, Cramer said Enersis is a high-growth foreign utility.
Enersis' revenues are split equally between its power generation and distribution businesses. Cramer noted that with two-thirds of the company's power derived from hydro-electric sources, Enersis is also an environmental play as Chile works toward energy independence.
Cramer said Enersis is a growth story. As Chile continues its stable economic expansion, the country's need for power will fuel automatic growth for Enersis. The company plans to invest up to $5 billion into its infrastructure by 2021, which signaled to Cramer a strong, multi-year move for the stock.
Cramer said with its 2.1% dividend yield and the stock trading at just 19 times its earnings, Enersis is trading at a discount to the global utility average. He said this $17 stock should be trading in the mid $20s.
Bad Speculative Plays
In the "Sell Block" segment, Cramer put out a warning on
( IMB) and
He advised investors not to be enticed by low-dollar speculations, saying such speculative moves can wipe out entire investments overnight.
Cramer said investors often get lured in by single-digit valuations and don't give much thought on how much they can lose. It could be "everything," he said, citing the recent example of
( TMA), as just another in a long line of companies that decline sharply, with little chance of ever recovering.
"Stocks don't get down to these prices because they're doing well," Cramer reminded investors.
In the case of IndyMac, Cramer noted the bank has a bad loan ratio of 6.5%, yet wrote off only $132 million of losses this quarter. The company continues to raise additional capital, diluting existing shares by the day. He also noted that 40% of the banks loans are in California, one of the worst markets in the country.
Cramer said Standard Pacific is also on the verge of imploding and is only kept alive by continued waivers allowing it to cease repaying its growing debts. "These stocks are too risky. Don't think they're cheap," said Cramer.
Cramer reiterated his buy on
as one of his favorite gold stocks.
In a final note, Cramer reiterated his buys on
National Oilwell Varco
on the news that
is calling for additional offshore oil rigs.
Cramer was bullish on
Cramer was bearish on
Central Garden & Pet
Jim Cramer writes about all the stock trades in his charitable trust for TheStreet.com in Action Alerts Plus. Recent stocks he's traded in this account include Schering-Plough (SPG) - Get Simon Property Group, Inc. Report, Yamana Gold (AUY) - Get Yamana Gold Inc. Report and Inverness Medical( IMA).
Want more Cramer? Check out Jim's rules and commandments for investing by
For more of Cramer's insights during the Lightning Round, click here
At the time of publication, Cramer was long Schering-Plough.
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.