Although the U.S. has the only "government that is of, by and for the corporations," Jim Cramer told viewers of his "Mad Money" TV show Monday that he blesses market-players who dedicate up to 20% of their portfolios to international companies. "The best reason to go overseas is that we stop being hostage" to what the Federal Reserve might or might not do, he said. And even though investors might see bumpiness in a few of the emerging markets, such as Brazil, Cramer said there was no need to fear them. He said he prefers Brazil-based Companhia Vale do Rio Doce ( RIO) as the single best play in the mining group, rather than BHP Billiton ( BHP) and Rio Tinto ( RTP). One of the main reasons Cramer likes CVRD, he said, is because it recently acquired Canada-based Inco. The deal represents "the best in anticompetitive behavior" as CRVD was able to obtain a "hammerlock on nickel," he said.
Oil-Slip SalvageThe market witnessed a slide in Oil Services Holdrs ( OIH) last week because of the fall in oil prices, Cramer told viewers. "The whole industry looked positively dead," but then Thursday it all turned around -- even as oil was plummeting, he said. Schlumberger ( SLB) raised its dividend by 40% and reported a "ridiculously good" quarter, which caused the stock to rise and turned the sector around, Cramer said. Schlumberger, "the most conservative oil-service stock in town," severed the connection between oil-service stocks and the short-term price fluctuations of oil and "turned the bears into buyers," he said. Particularly, Cramer said, the company said three things in its conference call that gave market players visibility and the confidence to bank on oil-service stocks based on their future. First, Schlumberger explained that the need for oil-service stocks is still present even if oil prices are down, he said. The company also reassured investors that the price of oil would not go back to the $30s and $40s and that more drilling should be needed to produce the same amount of oil. Last, Schlumberger said it expects to see "consistent high growth through the end of the decade," Cramer said. Based on this call, oil-service stocks, particularly international ones, are buys on weakness. However, Cramer added that he was more concerned about the domestic oil drillers.
Big Feather for Capital OneCapital One Financial ( COF), which Cramer owns for his charitable trust,
Armor AmourCramer welcomed Ceradyne ( CRDN) CEO Joel Moskowitz to the show and asked him if shareholders should be scared about the recent Friedman Billings' report claiming a big demand drop for body armor. "You should not be scared," Moskowitz said. "We have more orders for armor going into 2007 than we've had in the history of the company." Moreover, Moskowitz said that the company has had "extended conversations" with the U.S. government regarding what it needs for 2007 and 2008, and from those conversations, Ceradyne has been led to believe that the company is in "solid shape," as far as armor goes. Cramer said he believes that Ceradyne is a "money maker" and said he is going to stick with the bull case on this one. To view Cramer's interview with Joel Moskowitz, please
Lightning RoundCramer was bullish on Rite Aid ( RAD), China Mobile ( CHL), Genentech ( DNA), Amgen ( AMGN), Celgene ( CELG), Flir Systems ( FLIR), Nice Systems ( NICE), Google ( GOOG), Melco PBL Entertainment ( MPEL), SkyWest ( SKYW) and Under Armour ( UA). Cramer was bearish on China Unicom ( CHU), Flextronics International ( FLEX), Nektar Therapeutics ( NKTR), Pfizer ( PFE), Force Protection ( FRPT) and Imergent ( IIG). For more of Cramer's insights during the Lightning Round,
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