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"As great as the mining and mineral stocks have been, there's not enough money to go around to buy both tech and the mineral stocks," Jim Cramer told viewers of his "Mad Money" TV show Thursday.
Traders are selling tech to buy hot mineral stocks, he said, putting tech alongside health care as a sector that is out of favor.
But that doesn't mean that money can't be made, said Cramer, even though "the bull markets are getting fewer and farther between." So, he had a couple of money-making acronyms for viewers to remember.
The first was BRIC, which stands for Brazil, Russia, India and China. These are the countries that are buying all our stuff in order to keep up with their stratospheric growth, he said. And since they're essentially in the midst of their industrial revolutions, he said, they are going to spend despite what the
This fast growth and development means that there are bull markets in mining and minerals, infrastructure, carbons, including oil, and aerospace, he said. And that's where the acronym MICA comes in.
Cramer said that he would take a look at
, a Brazilian steel company that also has a U.S. subsidiary. But he said that he would avoid the subsidiary and go straight for the parent company, which trades on the
New York Stock Exchange
With the Brazilian economy on fire and with Latin America heading toward the capitalist fold, a big steel producer "is precisely what you need," he said.
Gerdau fits right into MICA, and it has cheaper raw ingredient costs than a company like
, he added.
But Cramer admitted that a strong Brazilian currency has weighed on Gerdau, putting it at a disadvantage when competing with other steel imports. But even with the expensive currency, demand is strong enough that the company should grow.
And it's a low-cost producer, so it can still grow out of any problems because the vast majority of its sales come from within Brazil, he said.
Cramer said that the most interesting infrastructure play is
because the company is "becoming a worldwide power merchant."
AES has business in Chile, Brazil, India, China, Pakistan and Vietnam, he said. And it is also in Hungary, the Czech Republic and the Ukraine. While these countries are not Russia, Cramer said, they are "Russia enough." The company also does business in Cameroon.
This is the stock to be in because it essentially provides power to all of BRIC, he said, referring to the countries that now "define intense economic growth."
But the stock is cheap and undervalued because it has been left for dead, he said, referring to the fact that it was burned by the Enron energy-trading scheme. In the wake of that disaster, AES has turned itself into a really excellent utility with a hand in all of the world's best growth markets.
The company just reported its first good quarter ever and is making money off of all power sources, including gas, hydroelectric, wind power and oil. Plus, Cramer said that it beat earnings estimates by a huge amount.
The company is also paid in currencies that are getting stronger. And he said that as the greenback weakens, AES could make a fortune converting currency to lots of weak dollars.
Going over the four sectors that he believes are the place to be right now, he recapped some of the plays that he has given for the acronym MICA.
For materials, minerals and mining, he recommended the Brazilian steel company Gerdau. He said to take a look at AES for infrastructure, and he told viewers that he has consistently recommended
-- a stock he owns for his
Action Alerts PLUS charitable trust portfolio -- as the best plays for carbon, which includes oil.
For aerospace, he said to look at
Cramer pointed out that aerospace is on fire, but that it's "looking like a battleground," with
both "in it to win."
In a cycle this strong, both companies can make you some money, he said, but so can the company that supplies to both sides. And that's where Triumph comes in.
The company makes almost anything you need for a plane, and it sells to Boeing and Airbus, including landing gear, windows and exhaust nozzles. Plus, it does maintenance and repair work.
It reported a spectacular quarter, hit a 52-week high and then pulled back. Cramer said that in bull markets, he likes to buy stocks that have hit a 52-week high and then come down 8% to 10%.
Even though Triumph is already on the acquisition trail, he added that the company could be a serious takeover target for Boeing, which has said that it wants to own more service companies.
AMD's Chip Standard
Cramer repeated that he would be a seller of
, a company that he used to own for his charitable trust. But he also said that he likes
Advanced Micro Devices
, a company that has come from behind to overtake Intel as the best chip play around.
He welcomed AMD chief executive Hector Ruiz to the show, and congratulated him for surpassing Intel chips in terms of speed, quality and price.
Ruiz said that there is no question that his company's chips are better, and that AMD has always prided itself on being the better value. Customers have responded, he said, which has resulted in more market share.
Cramer said that when
reported, he felt that the company was getting squeezed because it's paying more for chips made by Intel, while competitors are getting better value from AMD. He asked Ruiz if he thought Dell would ever switch to AMD.
Ruiz said that he would "truly love to have Dell as customer," and that AMD has the capacity should this happen.
He added that his company will work hard to keep its exclusive customer relationships.
To view Cramer's interview with Ruiz, click here.
Cramer was bullish on
Level 3 Communications
Cramer was bearish on
For more of Cramer's insights during the most recent Lightning Round, click here
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At the time of publication, Cramer was long Halliburton.
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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