Investing in Latin America has been a recurring theme on Jim Cramer's "Mad Money" due to the strong economic conditions there. Cramer's latest idea on how to capitalize is through Chile he told viewers Tuesday. Chile is especially attractive, he said, because of the nation's 4% budget surplus, which is bullish for business. One way to invest in Chile would be to buy shares in The Chile Fund. But, Cramer is leery of the fund because one of its largest holdings is Embotelladora Andina ( AKO.A), a Coke bottler. "You should never own" a bottler, said Cramer. The fund also owns Compania Cervecerias Unidas ( CU), another beverage company, which Cramer doesn't like. Instead of buying the fund, Cramer recommends buying the fund's best stocks: Enersis ( ENI), Vina Concha y Toro ( VCO) and Sociedad Quimica y Minera ( SQM). These are the "creme de la creme" of Chilean stocks, he said. Enersis is an electric utility company that is growing along with the demand for power in Chile. "I would buy this one," said Cramer. Vina Concha y Toro is a producer of "good wine from Chile at a nice price point," he said. Sociedad Quimica y Minera owns the world's largest lithium mine, the key ingredient in lithium batteries. The stock is in 'mon back* territory, said Cramer. As a way to play Chile through an American company, Cramer said Colgate-Palmolive ( CL) is the biggest brand name in Latin America. He believes Colgate is a buy, and below $50, it warrants a 'mon back. Colgate's shares closed Tuesday at $53.53.
Best Asbestos BetsNow that Georgia-Pacific ( GP) has agreed to be bought out by Koch Industries, Cramer believes Crown Holdings ( CCK) and Albany International ( AIN) may be the next big industrial takeover targets. The main thing Crown and Albany have in common with Georgia-Pacific, said Cramer, is both companies have asbestos issues that are under control and almost behind them.
Cemex Gets SetCramer is bullish on Mexican cement maker Cemex ( CX) because he believes the current 55% tariff on Mexican cement is about to be suspended. A number of states are experiencing shortages of cement, said Cramer, and an editorial in The Wall Street Journal argued the Mexican cement tariff should be removed. The Commerce Department has the authority to suspend the tariff, said Cramer, and he believes it will do so. The reason, Cramer said, is the president, who with such low approval ratings right now, will cave to pressure from the Journal lest he risk losing one of the last places from which he still enjoys strong support.
Stump CramerIn a segment called "Stump Cramer," viewers called in to ask about stocks they hoped Cramer wouldn't know. Cramer was stumped by Enterprise Products Partners ( EPD), Illumina ( ILMN), Pain Therapeutics ( PTIE), Mattson Technology ( MTSN) and MDU Resources Group ( MDU). Cramer was not stumped by Ballard Power Systems ( BLDP). "I know it enough to give it a thumbs down," he said. He also wasn't stumped by Salix Pharmaceuticals ( SLXP), a "not great drug company," he said. "Don't touch that one."
Lightning RoundBullish Cramer was bullish on Home Depot ( HD), Whole Foods Market ( WFMI), UnumProvident ( UNM), Prudential Financial ( PRU), MetLife ( MET), Google ( GOOG), Kyphon ( KYPH), Polaris Industries ( PII), Microsoft ( MSFT), Dow Chemical ( DOW), Halliburton ( HAL), Aflac ( AFL), Walt Disney ( DIS), Viacom ( VIA), NutriSystem ( NTRI), Best Buy ( BBY) and Apple Computer ( AAPL). Bearish Cramer was bearish on ev3 ( EVVV), deCODE Genetics ( DCGN), Rite Aid ( RAD), Syntroleum ( SYNM), Albertson's ( ABS), Arctic Cat ( ACAT), Compuware ( CPWR), KFx ( KFX) and NL Industries ( NL). *For all you home-gamers, a 'mon-back opportunity means Cramer would back up the figurative truck and load up on a stock.