Click here for an archive of Cramer's "Mad Money" recaps.

Peru is the "new capitalist paradise," Jim Cramer told viewers of his Mad Money TV show on Tuesday.

"Down there is better than up here," and he likes Credicorp ( BAP - Get Report), Lan Airlines ( LFL), Petrobras Energia Participaciones ( PZE) and Southern Copper ( PCU).

Latin America is benefiting from great natural resources, which are contributing to the rise of a middle class. The countries also now have better governments than they used to, and "they got religion about finance," Cramer said.

Credicorp is a financial services holding company based mostly in Peru. It also has some exposure to Bolivia and Columbia, which Cramer likes. Credicorp is a play on the credit revolution in Latin America, where it has become possible for more people of the middle class to take out mortgages and personal loans, said Cramer.

Lan Airlines is benefiting from a bull market in air travel in Latin America. The stock pays a 3.8% dividend and isn't "locked in a fight to the death" with its unions, like some U.S. airlines, said Cramer.

Petrobras Energia Participaciones is a Latin American energy company with 8% of its business in Peru. Cramer said he's bullish on anything oil in Latin America.

Finally, Southern Cooper is "the easy one," said Cramer. "If there is one reason why Peru is hot, it's copper," he said. The stock pays a "huge dividend," as well.

Cramer said Southern Copper recently did an elaborate refinancing and raised much more money than it thought it could. The stock was at $42 then. It's at $53.90 now.

Cramer recommended not buying these stocks at the open Wednesday if they are up big. Wait until they come in, he said, before pulling the trigger.

Micron Rave

Intel ( INTC - Get Report) has developed an "instant on" technology for PCs that uses flash memory, and that makes Cramer bullish on Micron Technology ( MU - Get Report). Cramer believes "instant on" will be a big hit, and since Intel doesn't make flash memory chips, he believes Intel will outsource flash chips to either Micron or Toshiba.

Cramer believes the edge goes to Micron because Intel owns 8% of Micron through two investment funds. "Greed can be very good ... especially when it's someone else's greed, and it can make you money," he said.

Furthermore, Micron just bought a big flash fab from Toshiba, said Cramer. He believes Micron knows it has something coming from Intel.

Even if Micron doesn't get the deal, Micron just reported a "fantastic" quarter and is at the very heart of the Cramer tech rally, he said. Best of all, most analysts are "sitting on the sidelines" with Micron and keeping estimates low.

In response to a question about semiconductor capital equipment stocks, Cramer said he does not like Applied Materials ( AMAT - Get Report), Novellus Systems ( NVLS) or KLA-Tencor ( KLAC - Get Report). "I truly dislike that group," he said.

Lay Claim Now on Firserv

A report in The Wall Street Journal Monday that "the leveraged buyout guys and the private equity guys are swarming around Computer Sciences ( CSC)" has Cramer licking his chops for Fiserv ( FISV - Get Report).

Fiserv is a financial outsourcing company with stable financials and an inexpensive stock price, said Cramer. Cramer believes the company's management is unhappy with the stock price as evidenced by its buyback last quarter of 4.4 million shares, which didn't work, said Cramer. Cramer believes the only thing that will move the stock is the possibility of a leveraged buyout or a private equity sale of the company. "I think that's coming," he said.

In addition to the report about Computer Sciences, SunGard Data was taken private earlier this year, said Cramer. SunGard "is the spitting image of Fiserv," he said.

"Once is an isolated event. But, two LBOs in the same industry? Trend! I think Fiserv is lined up to get taken private," he said.

Cramer believes Fiserv's stock price could go up $10 to about $53 from Tuesday's close of $43.04, and "it would still be OK on the metrics that they did the SunGard Data" deal, he said.

"You need to own Fiserv before the rumors start."

St. Joe's Stock Weathers Well

St. Joe ( JOE - Get Report) CEO Peter Rummell joined Cramer by telephone. Cramer asked Rummell why his company's stock didn't go down more today even though the company lowered guidance. Cramer asked him if he thought the reason was because people already expected lower guidance or because people are looking ahead six months.

Rummell said he believes the reasons are a combination of the two.

Cramer asked if people would come back to buying properties near coastal areas in Florida given the fears some may have from the recent hurricanes.

Rummell said history and demographics are in the company's favor. "Florida has good years, and Florida has bad years. But, we think there's no reason why people won't continue to act the way they always have."

Rummell said his company's property hadn't suffered any significant damage from the hurricanes. "We're starting to see people come back," he said.

Cramer summed up the interview saying when the stock was near its 52-week high of $85.25 in July, the stock was a sale. At $61.62 where the stock closed Tuesday, "I want to buy it," he said.

Lightning Round


Cramer was bullish on Harrah's Entertainment ( HET), Southwestern Energy ( SWN - Get Report), Yellow Roadway ( YELL), IntraLase ( ILSE), Scottish Power ( SPI), Syneron Medical ( ELOS), Chevron ( CVX - Get Report), Pike Electric ( PEC) and Chesapeake Energy ( CHK - Get Report).


Cramer was bearish on Anheuser-Busch ( BUD), Progress Software ( PRGS - Get Report), Schlumberger ( SLB - Get Report), Stryker ( SYK - Get Report), Zimmer Holdings ( ZMH), Abgenix ( ABGX), Ford ( F - Get Report), Lions Gate Entertainment ( LGF), Time Warner ( TWX), Veeco Instruments ( VECO - Get Report), i2 Technologies ( ITWO) and ( NTES).

Interested in more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here. It's a series of articles from Cramer on how to become a better investor. The following table lists some of the rules that Cramer dissects.

1. Pigs Get Slaughtered 2. It's OK to Pay the Taxes
3. Don't Buy All at Once 4. Buy Damaged Stocks
5. Diversify to Control Risk 6. Do Your Homework
7. Don't Panic 8. Buy Best-of-Breed
9. Defend Some Stocks 10. Don't Bet on Bad Stocks
11. Own Fewer Names 12. Cash Is for Winners
13. No Regrets 14. Expect Corrections
15. Know Bonds 16. Don't Subsidize Losers
17. No Room for Hope 18. Be Flexible
19. Quit When Execs Do 20. Patience Is a Virtue
21. Be a TV Critic 22. When to Wait 30 Days
23. Beware the Hype 24. Explain Your Picks
25. Find the Bull Market
Check back for more of Cramer's Rules

At the time of publication, Cramer was long Intel and St. Joe.

James J. Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for ActionAlertsPLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." Cramer appreciates your feedback and invites you to send him an email by clicking here.